Livewire gives investors direct access to the stock ideas, research and. Understanding quality of earnings part 01 meditations. While much of it is marketing puffery, there is also a lot that companies disclose because they. Oglove was published 26 years ago, in 1987, and is still highly relevant in todays context. Written in 1987, the book delves into the ostensibly esoteric subject of corporate accounting and its implications for common stock investors. The quality of earnings refers to the amount of earnings attributable to higher sales or lower costs rather than artificial profits created by accounting anomalies such as. Thats exactly what thornton oglove argues in his book, quality of earnings.
The subject of management for quality has undergone rapid and drastic change as a result of competition in the marketplace and the vulnerability of industrialized societies that. Apr 10, 2019 this blog post is the first in a series of blog posts that talk about the quality of earnings for a business. O glove 1998, paperback at the best online prices at ebay. Apr 23, 2018 a look back at the quality of earnings problem. This section uses material from the textbook financial accounting. Why do many growth investors blow up on seemingly promising. Oglove is a former securities analyst who started the quality of earnings report, used by many investment firms. Jul 15, 2016 thornton oglove is the author of quality of earnings. This is probably one of the best books on accounting i have read in recent times. His work is amongst the must reads by industry icons including tom gardener of the motley fool, and on kuppys book list as one of the top financial accounting books of all time. There are characteristics affecting the quality of earnings that can be considered by financial statement users to assist in the evaluation of particular earnings components. Oglove, 9780684863757, available at book depository with free delivery worldwide. Aug 01, 2018 for the retail investor and amateur security analyst, thornton o glove s quality of earnings is a must read. With business historian sobel, oglove details a methodology to help the investor understand the role of the corporate annual report, cash flow and debt analysis, accounts receivable and inventories, the differences between shareholder.
O glove is a former securities analyst who started the quality of earnings report, used by many investment firms. An indispensable guide to determining how much money a company is really making and for buying and selling stocks without making costly blunders. Thornton o glove is the author of quality of earnings. The only person you can count on to do the work is yourself. Many equity analysts have cut their teeth on thornton o gloves quality of earnings. Quality of earnings is relative and covers a spectrum. Oglove has written an absolutely brilliant investment book for the diy investor. There are characteristics affecting the quality of earnings that can be considered by financial statement users to assist in. Note that earnings quality that the book talks about goes beyond earnings management and outright fraud not that those are.
An indispensable guide to determining how much money a company is really making. Oglove s book quality of earnings published first in 1987 and which in my opinion remains a fascinatingly fresh read. Thus insurance companies have a higher pe ratio versus timesharing real estate sales companies which has volatile earnings and a tougher business. O glove instructs the reader in how to unmask inflated earnings, and how to recognize the difference between a corporations shareholders books, and the irs reported tax earnings. Oglove 10 looked into earnings quality as a determinant of a companys future. With business historian sobel, oglove details a methodology to help the investor understand the role of the corporate annual report, cash flow and debt analysis, accounts receivable and inventories, the differences between shareholder reports and tax. Oct 08, 2011 in this book, thornton o glove tells investors how to judge the quality of a companys earnings, in order to both protect against fraud and find value. With business historian sobel, o glove details a methodology to help the investor understand the role of the corporate annual report, cash flow and debt analysis, accounts receivable and inventories, the differences between shareholder reports and tax reports. For the retail investor and amateur security analyst, thornton o glove s quality of earnings is a must read. This primer defines these terms and explains your role in performing oversight of a companys financial statements. Quality of earnings is likely a cornerstone in most investors bookshelves, albeit somewhat dusty. This blog post is the first in a series of blog posts that talk about the quality of earnings for a business. Romano salatenna, portfolio manager at katana asset management, explains how to identify stocks with high quality earnings. Oglove recommends reading everything the company puts out.
Quality of earnings by thornton l oglove, robert sobel. Much of the content in this post takes its inspiration from thornton l. He is also known for the seminal book, quality of earnings. Thornton oglove hits at the subject in a traditional way accrual accounting entries are always more suspect than cash entries. The investors guide to how much money a company is really. The subject of management for quality has undergone rapid and drastic change as. An indispensable guide to determining how much money a company. Thornton oglove hits at the subject in a traditional way. Thornton oglove quality of earnings best forex store. Buy quality of earnings by thornton l o glove, robert sobel online at alibris.
Dec 04, 2010 open library is an initiative of the internet archive, a 501c3 nonprofit, building a digital library of internet sites and other cultural artifacts in digital form. For the retail investor and amateur security analyst, thornton ogloves quality of earnings is a must read. In this book, thornton oglove tells investors how to judge the quality of a companys earnings, in order to both protect against fraud and find value. The paperback of the quality of earnings by thornton l. Buy a cheap copy of quality of earnings book by thornton l. Oglove published a book entitled quality of earnings, the investors guide to how much money a company is really making. Oglove published a book entitled quality of earnings, the investors guide to how much money a company is really making in this book, the author shows how companies use alternative yet accepted accounting practices gaap to report completely different levels of profitability. Quality of earnings by thornton l oglove, robert sobel alibris. Find out more about quality of earnings by thornton l. With business historian sobel, o glove details a methodology to help the investor.
When picking stocks, quality of earnings matters qmi capital. But this 1987 book can certainly be read with your 2014 glasses on. Graham and dodds security analysis, peter lynchs one up on wall street, benjamin grahams intelligent investor, lawrence cunninghams the essays of warren buffett, and thornton oglove s quality of earnings. Oct 16, 2011 in this book, thornton o glove tells investors how to judge the quality of a companys earnings, in order to both protect against fraud and find value. The investors guide to how much money a company is really making. Jae jun, the value investing blog of old school value thornton oglove teaches you how to accurately gauge weather earnings have been created by good management or created by good accounting. Written in 1987, the book delves into the ostensibly. I think earnings quality is one of the great neglected concepts of investing. Oglove instructs the reader in how to unmask inflated earnings, and how to recognize the difference between a corporations shareholders books, and the irs reported tax earnings.
Feb 08, 2010 i think earnings quality is one of the great neglected concepts of investing. Buy quality of earnings book online at low prices in india. An introduction to concepts, methods, and uses, th edition, published by southwestern, cengage. This is a decent book which can help you build a useful list of items to check the earnings quality of a company is good.
Oglove in the mid1980s, who was at the time known as the author of quality of earnings report. Open library is an initiative of the internet archive, a 501c3 nonprofit, building a digital library of internet sites and other cultural artifacts in digital form. O glove was published 26 years ago, in 1987, and is still highly relevant in todays context. Intended as a practical guide for investors at every level, quality of earnings has stood the test of time with its meaningful advice and sharp insight into the. It discusses blind spots that any accountant worth his salt should be able to spot.
The fact that hardly anyone has ever heard of this book cements the fact. Buy quality of earnings by thornton l oglove, robert sobel online at alibris. O glove recommends reading everything the company puts out. Very few people have read or heard of this book, which is great for anyone who reads this oneofakind book on the quality behind a companys earnings. One of the most important questions upon re reading the book is the issue of aging. Oct 23, 20 this is probably one of the best books on accounting i have read in recent times. Oglove is a wall street veteran known for pioneering red flag deviation analysis and his authorship of the institutional research publication, the quality of earnings report along with his coauthor robert a. Who tells a happy story broadly, but is serious in regulatory filings. Jul 12, 2016 romano salatenna, portfolio manager at katana asset management, explains how to identify stocks with high quality earnings.