Michael Tsangaris

Further Praise for What’s Behind the Numbers

Revisado: 06-25-14

What’s Behind the Numbers simplifies the subject of forensic accounting and financial statements analysis and guides the reader through a number of rules, formulas and methods for avoiding companies that practice aggressive accounting.

John Del Vecchio, CFA is the co-portfolio manager of the Ranger Equity Bear ETF and his past experience revolves around using forensic accounting to short stocks. Tom Jacobs is best known from The Motley Fool; his current position being the Lead Advisor for Motley Fool Special Ops which focuses on special situations. Their credentials provide the reader with plenty of conviction regarding their knowledge of value investing, identifying red flags and consequently shorting.

What’s Behind the Numbers has received positive mention from informal reviews by readers on a number of online websites; namely Amazon.com and by a number of investment professionals such as Jeff Fischer, Charles Sizemore, and the CFA Institute. This broad mix of praise points to the fact that key concepts have been broken down and are easy to read while at the same time the case studies and investment strategies mean that it is a relevant reference book for financial professionals.

The book focuses on aggressive accounting practices in order to recognise overvalued stocks however practices which are legal and which abide by accounting principles. Companies often bury important information regarding revenue recognition, inventory management and other financial shenanigans in the footnotes however, one does not need to go into such depth to identify the warning signs. Del Vecchio and Jacobs guide the reader throughout, with uses of examples to illustrate their point and explain the different tools available to investors to spot potential trouble. While they focus primarily in avoiding certain companies and thus avoiding a loss, certain cases warrant short positions that would lead to a profit.

Furthermore, technical analysis is also covered and this combination of identifying a stock that is losing momentum with weaknesses in the financials is a strong combination for avoiding or shorting a stock.

The book is narrated by one of the authors, Tom Jacobs, which is a positive sign as it does not sounds scripted but instead more colloquial. While the book does assume some basic knowledge of investing and accounting, it is narrated in such a pace so as not to lose the listener's attention. While potential audiobook listeners may note that tables and graphs are excluded and thus may show preference for the hard copy, these are in fact available for download at deljacobs.

In conclusion, the combination of empirical evidence, relevant examples for specific accounting practices, and a comprehensive writing style makes What’s Behind the Numbers a book that could benefit both business school students and investors alike.

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