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Description of It's Earnings That Count

A Powerful, Easy-to-Use Investment Tool for Delivering Long-Term Profits While Protecting Your Family's Savings

Investors today must look beyond balance sheet "earnings" to gauge whether the company behind a stock has the potential to deliver triple-digit capital gains. It's Earnings that Count shows you how to know, at a glance, whether a company has legitimate long-term earnings power--or whether its stock is little more than an attractively packaged time bomb, waiting to explode without warning in your portfolio.

Whether you invest in mutual funds or individual stocks--or, more likely, a combination of the two--you have undoubtedly lost money on companies that "looked good on paper." It's Earnings That Count introduces the easy-to-use Earnings Power ChartTM methodology, an approach that quickly identifies that small number of companies that possess high-quality earnings growth, and are positioned for growth over the long haul.

This two-step methodology reveals not only if a company has the ability to finance its growth, but also how successful it is (and will continue to be) at creating value for its investors. Giving you the tools you need to take on both the back-office number crunchers and Wall Street sharks, It's Earnings That Counts reveals:

- The four substantive limitations of the income statement found in every annual report, 10-K, and 10-Q
- How those limitations can cost you money even if the company is "profitable"--and how to protect yourself
-A quick-hitting, five minute test for sifting out the obvious losers so you can save time and focus on analyzing potential winners
- The Earnings Power Chart--A powerful, picture-based investment tool for identifying great growth stocks for the next decade
- Case studies of real companies, from Enron and WorldCom to HealthSouth, Microsoft, and Wrigley

If recent history has taught us anything, it is that published financial reports can be questionable and even misleading to investors looking for solid investment targets, while a sound business foundation and legitimate earnings power provide the best insurance against a stock's collapse. Let It's Earnings That Count show you how to look beyond reported figures to find those needle-in-the-haystack companies that will power your portfolio with profits and growth proven to last for the life of the portfolio--not artificially enhanced growth destined to last only until the release of the next quarterly report.

Title Information

ISBN:

9780071423236

Pages:

256 pages

Format:

Paperback

Product Code:

16897

Publisher:

McGraw-Hill Professional

Published:

01/11/2003

Edition:

1st Edition

Press and Industry Reviews

"Well-written, intellectually sound, 'accessible' to those who take the time to understand, and a poke in the eye to those who abused our capitalistic system and those (pros) who let them get away with it."
-John C. Bogle, Founder and former CEO, The Vanguard Group

"Clear and engaging, Heiserman shows how to easily evaluate a growth company's investment potential for both conservative and aggressive investors. The result? The 'cautiously greedy' investor wins."
-Tom Jacobs, Senior analyst, The Motley Fool

"In a single, easy to use index, Heiserman captures the essence of growth and value--a most insightful approach to stock picking."
-Charles W. Mulford, Professor of accounting, Georgia Institute of Technology, Director, Dupree Financial Analysis Lab, and Coauthor, The Financial Numbers Game

"A great addition to the literature! Hewitt Heiserman has crafted an easy read, basic tutorial on avoiding the most common mistakes caused by accounting phony baloney--combined with some age-old investment wisdom. Mandatory for the intermediate investor."
-Kenneth L. Fisher, CEO, Fisher Investments, Inc., and Forbes columnist, "Portfolio Strategy"

"If you are a long-term investor most companies are not worth touching; your focus must be on identifying that small minority of firms that have the potential go be great growth stocks for the next ten years without exposing your portfolio to excessive risk. My purpose is to share with you a hands-on approach for looking beyond what a company reports and what Wall Street says. In the end, you'll be able to form your own educated opinions based on your analysis and make the best investment decisions for you."
-From the Introduction

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About Hewitt Heiserman Jr.

Hewitt Heiserman Jr is a quantitative research analyst, columnist for TheStreet.com, and founder of earningspower.com. A financial analyst for more than 15 years, he has worked with Fidelity Investments, American Holdco, and other financial firms.