Quitting a accounting and financing class… And some thoughts.

Hi guys, Sorry I have to say goodbye before we get to know each other.
I have decided to quit this class, not because it’s boring, but I’m sick with waking up at 6 a.m. and took a 1 hour train ride full of people.
I hope you guys can have fun with this class since it might be helpful when it comes to investments and also, like the professor has said, the career.

But at the same time, I, as a trader has some advice for people who take this class.
First, never judge solely on the financial statements from a company, there are various reasons, includes but not limited to,

Some companies has no 3rd party accounting/supervision which leads to tricky things like giving the data a massage. (Which violates SEC rules if it’s an American company.)

Asset prices in balance sheet, includes government bonds, securities, etc are the “spot price”, when getting liquidated, usually it’s only 30% of the price.

As we come to the problem with liquidity, when going through the financial statements, also pay attention to it’s asset portfolios, if assets has bad liquidity, such as Japanese Government Bonds, then you may have to consider the asset is rubbish, even if it still has value on paper.

And at last, the currency used in accounting. Remember the question I asked, the Seven & I Holdings, is the currency Japanese yen or US Dollar. This is a tricky question, since, even if a company has growing asset/sales, but the currency falls 30%, it is meaningless.

Some words might be aggressive, but still, it is what it is.
Hope you guys have a great time with Professor and take care.