If you know the financial statements, you can see the stocks that are rising!
The Power of Financial Statements Investment, Revised and Expanded Edition

★Investment strategies from an expert who has protected individual investor accounts at a securities firm for 25 years★
A practical guide for everyone from beginners to seasoned stock investors.
★A solid stock investment guide reflecting the latest economic trends in the KOSPI 5000 era★

“The stock market is a place where you can take your precious money
We must never forget that this is a fierce battlefield.”

A survival guide for investors on their knees in the gunfire-filled stock market! "The Power of Financial Statement Investment" is now back in a revised and expanded edition for 2025, for readers who were disappointed when it went out of print.
It has become more robust by reflecting the latest developments, such as the 'Commercial Act Amendment' proposed by the Lee Jae-myung administration to enter the KOSPI 5000 era and the 'tariff policy' of US President Trump.
No more relying on gut instinct and pressing the buy button! If you're struggling to improve your returns despite studying stocks, it's time to look at your financial statements.


Thanks to the helpful explanations of Wise Economic Research Institute Director Cha Young-joo, anyone can easily utilize financial statements for stock investment.
In "Financial Statement Core Investment Lessons," you'll learn how to spot buying opportunities on charts that move by the second and how to avoid the trap of news that can shake investor sentiment.
It consists of a total of 6 chapters. Chapter 1 explains the truth about stocks, Chapter 2 covers the basic theory of financial statements, and Chapters 3 through 5 examine the characteristics of financial statements in detail.
Finally, in Chapter 6, we analyze the company and develop the ability to see the whole picture.
Furthermore, you can acquire winning strategies in the lonely stock market through the appendices of each chapter, "Complete Financial Statements in 10 Minutes" and "Useful Stock Information to Know."
Complete a complete financial statement analysis in one book and select stocks that will rise based on your own principles.

The reason investors study financial statements with difficulty is to generate consistent profits.
To understand the movements of a company that generates consistent profits, rather than temporary profits, you must use financial statements.
Some investors only pursue information about a company, but no matter how good the information is, it must ultimately be included in the financial statements.
--- p.30, from “Measuring Corporate Value with Financial Statements”

A sound financial structure, including sales and operating profit, in financial statements provides the confidence to continue investing.
If they are still sending positive signals, you can continue investing.
Let's think about it.
We're investing in a future no one knows for sure. What should we trust and wait for? In a world already fraught with uncertainty, investing without checking financial statements is no different than leaving most of your life to chance.
--- p.39, from “Basic Financial Statement Theory for Confident Investment”

So who holds the upper hand in trading in the stock market? While it's generally the sellers in bull markets and the buyers in bear markets, investors should always assume the buyer has the upper hand and remain relaxed.
We need to have the attitude that opportunities are always open.
--- p.42, from “A reasonable standard for cheap stocks”

First, let's remember that the balance sheet shows the financial status of a company at a 'specific point in time.'
Businesses, like living organisms, are constantly changing, and it is practically impossible to monitor them all.
So, the financial statements are a way to infer the overall picture of a company by taking a single point in time.

--- p.93, from “Financial Statement to Understand the Overall Appearance of a Company”

Great investors often liken sales to a "water source."
Just as a river must pump out a lot of water from its source to flow to the sea without drying up, this means that a company must fundamentally generate continuous sales in order to make a net profit after deducting various expenses.
--- p.112, from “The Income Statement That Must Be Carefully Examined”

Cash is crucial for a company's survival, and to confirm this, the company's cash holdings must be checked through the cash flow statement.
Only the statement of cash flows provides an accurate picture of a company's cash holdings.
The cash flow statement is said to be the most difficult of the three financial statements to modify arbitrarily because the movement of cash is clear.
Also, keep in mind that the cash flow statement is prepared according to the realization principle, unlike the income statement or balance sheet, which are prepared according to the accrual principle.
--- p.121, from “Cash Flow Statement that Shows Cash Holding Status”

Dividends should be viewed as a reflection of the company's situation, as paying out a large dividend could be an indication that growth has stalled.
How should a company facing low growth (meaning slow growth) best utilize its profits? I believe distributing profits to shareholders through dividends is a compelling approach.
So, during periods of low economic growth, dividend stock investing becomes more attractive.
--- p.245, from “Understanding the Relationship Between Dividends and Investment”

We've all had the experience of analyzing companies we're interested in and suddenly finding a company that catches our eye.
If a company that seemed vaguely good to you turns out to have an ROE of 20, you're bound to get excited about finding a good company.
So, is it right to immediately buy this stock? Let's calm down and think about it.
I often see cases where people diligently analyze a company, discover good indicators, and buy stocks with high expectations, only to be disappointed when the stock price doesn't respond, leading them to fall into the extreme of believing that financial statement analysis is useless.
They don't know that they are in error.
--- p.263, from “How to Apply Accounting to Investment Practice”

Again, because reports are processed data based on corporate data such as public disclosures and incorporate the analyst's thoughts, developing the habit of reading regular disclosures and securities company reports in addition to these will help you understand the analyst's tendencies and thoughts.
--- p.281, from "How to Read Securities Firm Reports to Complete Financial Statements in 10 Minutes"

In fact, when looking at the status of fund raising for companies that have experienced reasons for delisting, the proportion of private equity is found to be much larger than the proportion of public offering.
In addition, if the number of external financing requests is high and the financing schedule changes frequently without any special reason, this can be seen as a 'warning light' that the company's financial situation is worsening, so it should be checked through the business report.
--- p.313, from “Wisely Filtering Out Bad Companies”

Knowing the company well doesn't just mean knowing the company's name well.
It should not be said that companies like Samsung Electronics and Kakao are well-known.
The goal of an investor is to make a profit through investment, so it's important to understand the brand and products of famous companies from an investment perspective, not just from a brand perspective.

--- p.337, from "Creating Your Own Principles for Practical Successful Investment Using Financial Statements"