Conor's avatar
$12.9m follower assets
Item Number 7 (Hint: Read It)
I don't recommend investing in indvidual stocks if you're crunched for time, however, if you are not going to read the entire 10-K of a company and it's competitors before investing, you should at least read item number 7.

Item Number 7 on the 10-K is probably the most important section. This is where the management team discusses company results and financial conditions. You can pick up some amazing insights into companies past performance and how the management team thinks the company will perform in the future.

Leandro's avatar
The reality is than not even 20% (I'm being generous) of the people who invest in individual stocks read a 10K and it's a pretty significant edge for those who do. It's the best place to find red flags!
Vincent Poy's avatar
@invesquotes - That's true and I do get them in the postal mail regularly. Someone should try reading the ones from $SCCO as basically it was the size of a few white pages phone books with 3 books in total with the 10/K and then the 10-K/A Admendments splitter into another 2 books.
Jonathan Garcia's avatar
Great tip, thanks!
Nathan Worden's avatar
Very useful suggestion, thanks Conor!
Young Money Capital's avatar
I agree that item number 7 is useful, but I think that the whole 10K needs to be read before seriously considering an investment.
Jensen Butler's avatar
This! It is a great section that adds some uniqueness to the overall report and gives it a voice of sort. Overlooking management competency and poise is foolish when throwing capital at a company imo
Joey Hirendernath's avatar
Great advice Conor :)
Joshua Simka's avatar
Also known as the "MD&A." It tends to be the most illuminating part of the report. Sometimes published separately on a company's investor relations page.

Author

Related