When analyzing a company’s financial health, many investors focus on net income, earnings per share, or revenue growth. However, seasoned investors like Warren Buffett know that the cash flow statement is the real “truth-teller” of a business. While profits on paper can be manipulated with accounting tricks, a company’s cash…
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Why Stock Dilution Can Destroy Shareholder Value
Stock Dilution, Why Does It Matter To Investors? Imagine owning a slice of your favorite pizza. Now, picture the restaurant suddenly deciding to cut that same pizza into more slices and give them to new customers—without making the pizza any bigger. Your slice just got smaller. This is exactly what…