How to Read an Earnings Report

Learning to read an earnings report is a great way to gain more knowledge about a company’s financial health, which should lead to better investment decisions.

The data support that notion.

According to a 2018 study on financial literacy and investment returns by Alpha Architect, “More literate households hold riskier positions when expected returns are higher, they more actively rebalance their portfolios and do so in a way that holds their risk exposure relatively constant over time, and they are more likely to buy assets that provide higher returns than the assets that they sell.”

Credits: Thestreet

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