Being a CPA, I have never taken any proper accounting related course. I only studied for professional exam. My professional knowledge and experience were gained from PwC by investing my most precious 5 years. After all, I learned that the published financial statements provided the least information for investment decision.
Today, I had my first proper accounting class. Professor Yip gave me a new perspective about how to review a financial statement. You can smell something by checking the thickness of the report, any photos (irrelevant information), any change of comparative figures, any change of auditor or independent director. Sounds .... did I waste 5 years in PcW?
He emphaized how to avoid type 1 error (total loss) by reviewing the financial statement. He also suggested that we should not make any investment if the expected gain is less than 100%... what? yes....100% in 1 year.
If we follow his approach, we will only make type 2 error (miss a good opportunty). What an accountant investment approach!!!
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