Investing, some say, is part precision, part instinct. But really? It’s a battleground for the mind, a psychological maze where emotions rule the day. One moment, you’re soaring on the thrill of a booming market, hands raised in triumph, feeling invincible.
You wouldn’t buy a house without checking its foundation, right? Same logic applies when you’re investing in or managing a company—you’ve got to look under the hood and figure out what’s going on with the financials.
Two documents stand out when it comes to understanding a company’s financial health — the balance sheet and the income statement. More than just numbers on a page, these powerful tools give insight into how a company operates, where its money comes from, and how it manages its resources.
