Wednesday, May 10, 2006

On Warren Buffett...

The following is a recent quote I came across from Warren Buffett...

Buffett: “Dumb lending always has its consequences. It’s like a disease that doesn’t manifest itself for a few weeks, like an epidemic that doesn’t show up until it’s too late to stop it. Any developer will build anything he can borrow against. If you look at the 10Ks that are getting filed [by banks] and compare them just against last year’s 10Ks, and look at their balances of ‘interest accrued but not paid,’ you’ll see some very interesting statistics.”

Does anyone ever understand what he's saying???

Anyway, here's a definition of a "10-K":

A comprehensive summary report of a company's performance that must be submitted annually to the Securities & Exchange Commission. Typically, the 10-K contains much more detail than the annual report. It includes information such as company history, organizational structure, equity, holdings, earnings per share, subsidiaries, etc.

Does that help?

Geno Petro
Chicago Home Estates

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