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