Professor Baruch Lev is the soothingly eloquent voice of reason in a world of accounting which is becoming increasingly unhelpful. He - and the IC’s very own Algy Hall - argue that the financial reports do not reflect the true value of companies because they fail to account for all important intangible assets.
This podcast will open your eyes to antiquated accounting rules and changes in the nature of company investments which have eroded the usefulness of many classic ratios used to identify value and quality.
To understand what to do about the situation, read Algy’s reinvention of value here.
Further Reading: Reinventing Intangibles
Assigning a value to an intangible asset is one of the great challenges of modern investing. Baruch Lev thinks he has the answer, which he has documented in a series of papers and books.
