Stock pickers typically want to own a company with a fortress balance sheet, not a flimsy one. This financial statement is worth looking at in order to decide whether to buy a new stock or keep the ones you own.
It provides a snapshot of a company's financial health at a particular point in time, typically at the end of the quarter. Tage Tracy, the author of How to Read a Financial Report, says investors who understand a balance sheet can more easily see where a company may be weaker than its management claims. And yet, says Tracy, "the balance sheet is often overlooked."
