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The 80/20 Rule of Reading Annual Reports
By FinancialPebble  •  May 10, 2020

I wrote this article 5 years ago which was then reposted on NASDAQ. I decided to give an edited 2020 version here. Much of what has been said is still relevant in todays context.

Reading Annual reports can be painful

I believe that many people, especially beginners, put off reading an annual report because they find it troublesome. I wouldn’t blame them, after all, I started out like that.

When I had to read annual reports, I nearly died imagining looking through over 200 pages of words. Fortunately, you do not need to read too much of the details.

Pareto is well know for the 80/20 rule. For instance, a great example would be 80% of the Amazon forest consists of 20% of tree species. In Singapore, 20% of the population control 80% of the wealth.

As with the 80/20 rule, 80% of the report contains irrelevant

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By FinancialPebble
Hi there! Thanks for dropping by. I wanted to share with you about how I began my investing journey.
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