Can't argue with that. He does what he says he is going to do. What it shows is a deep understanding of the business and its drivers. Either that or some "creative bookkeeping" through provisions.... Thanks for sharing.
Can't argue with that. He does what he says he is going to do. What it shows is a deep understanding of the business and its drivers. Either that or some "creative bookkeeping" through provisions.... Thanks for sharing.
It is quite "interesting" how they can project forward a whole year ahead what the profit will be and more often than not get it pretty spot on. You could very easily be forgiven for thinking some variations in their bad and doubtful debts provisioning methodologies occur from one year to another to make the numbers fit which kind of makes me wonder why bother with such a modest forecast upgrade ? (Not that I am complaining, disc: I have truckloads). Anyway...in August 2021 when they report a profit we already know for FY21 we get to know what FY22's profit will be and that's pretty cool no matter how you slice and dice this.
Last edited by Beagle; 18-05-2021 at 01:28 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
It is quite "interesting" how they can project forward a whole year ahead what the profit will be and more often than not get it pretty spot on. You could very easily be forgiven for thinking some variations in their bad and doubtful debts provisioning methodologies occur from one year to another to make the numbers fit which kind of makes me wonder why bother with such a modest forecast upgrade ? (Not that I am complaining, disc: I have truckloads). Anyway...in August 2021 when they report a profit we already know for FY21 we get to know what FY22's profit will be and that's pretty cool no matter how you slice and dice this.
The master of profit smoothing was Jack Welch at GE --- chart below proves that
Maybe Jeff learnt a few tricks from him.
Its actually a hard thing to do well because you need to remember whats in each little hidey hole - I've seen a few attempts at it fail big time
In GE's case Jack's successor had to unwind a few things
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Some investors however do see 'smoothness' of earnings as a red flag
But I've long admired Jeff's ability at it
In a world full of rough seas smooth is a refreshing change. Huge ups and downs are no good for the heart rate, see 16 second mark https://www.youtube.com/watch?v=c8qBvw3ofyE
I like the boat but those conditions are for younger and keener blokes than me
Last edited by Beagle; 18-05-2021 at 04:07 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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Originally Posted by Panda-NZ-
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