Retained earnings

IT may not always be safe for the public to rely simply on the figure given for retained earnings in choosing listed stocks. As a precautionary measure, individual investors who are not privy to what transpires inside the boardrooms must review more closely the financial details, including the retained earnings of the company of their choice, before investing in it.

Before proceeding with this piece, I thank Amnata Pundit, a reader of The Manila Times, for her (I assume this reader is a she, otherwise Amnata should correct me) analysis of the local market. In her comment on “Choosing the best stocks,” she suggested that “your reader study chart analysis and to focus on the monthly charts only for long-term investments.”