For a quick, yet very insightful view of fundamental analysis, look no further than Michael Thomsett’s book Getting Started in Fundamental Analysis.  It’s not quite the in depth (and boring if you ask me) view that Benjamen Graham presents, but it does give the beginner and intermediate trader a great snapshot on the most important principals.  The book is available in paperback, and is a quick read, but can also occupy a permanent spot on your bookshelf.

Here is one of my favorite sections of the book on Off-Balance Sheet Liabilities:

A very troubling final observation about balance sheet ratios concerns off-balance sheet liabilities.  Most of the trends you develop and track will be affected by obligations that do not show up.

Among the many tricks used by executives in those corporations caught deceiving stockholders in the past, was one in which off-balance sheet liabilities were carried, at times in the billions of dollars.  As a consequence, the value of the company and its stock could be vastly inflated….

The lack of disclosure may easily distort the true picture, just as increases in long-term debt may distort a seemingly positive trend in the current ratio.  The solution is to develop an ability to understand footnotes, and to adjust your trend analysis so that your trends and ratios are complete and realistic.

For a more detailed view of the book’s contents or to purchase the book, just click the book below.

Getting Started in Fundamental Analysis
Getting Started in Fundamental Analysis by Michael C. Thomsett