Many doctors invest in the stock market, but they do this in a disorganised fashion. They rely on tips from their patients and brokers, which means they usually end up losing money — and then claim that the market is rigged! The truth is that the fault is ours, because we cannot decipher financial statements. Most of us find accounting and bookkeeping very boring, and the only time we talk to our CA is when it’s time to file our IT returns. Learning the language of accounting is like learning a new language — and it’s possible to do this!
It needn’t be boring at all. There are lots of great books that use stories to explain why learning how to read a balance sheet and cash flow statement is so important. Yes, there is a learning curve, and you need to become numerate before you can appreciate a balance sheet. The truth is that figures can be beautiful — and not just those of models!…