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<p>[QUOTE=&quot;medoraman, post: 1545802, member: 26302&quot;]So evil little CFO&#039;s like me are ruining the world? You do know that CFO&#039;s are beholden to the CEO, Chairman, and many others, right? Any CEO who blames his CFO for &quot;cooking the books&quot; is either an imcompetent blathering idiot, (and not many of them usually become CEO), or is lying to your face.</p><p><br /></p><p>Anyway, the solution to such dangers has always been simple to me. UNDERSTAND how the company you invest in operates. Look at the assets they have, what products or services they make, how their margins are, and how net income is derived. I took a good look at Enron 3 years before the implosion and walked away shaking my head. I am a CPA and MBA in Finance, and I could not come close to understanding their business and how they made money long term. If I could not, I simply do not know how most other investors could either. I was not an analyst myself, but my friend was and I helped her draft a warning report on the firm at that time. </p><p><br /></p><p>Every single meltdown did not come from out of the blue, regardless of what the media would have you believe. All of them had the same warning signs, like opacity of financial reports, that gave investors plenty of warning. The fact many investors choose to ignore such warnings and chase &quot;hot stocks&quot; is not our fault. The dot-com era was FILLED with warnings on these stocks being vastly ovrvalued, yet it didn&#039;t stop the legions of day traders and lemmings from chasing &quot;hot markets&quot;.</p><p><br /></p><p>Financial analysts cannot change human behavior, or to paraphrase Ron White, &quot;we can&#039;t fix stupid&quot;.[/QUOTE]</p><p><br /></p>

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