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Male 1: I know in other discussions you’ve talked a little bit about your background and some of the work that you’ve done in the past, I know you’ve done a lot of auditing of financial statements of companies and you have an interesting way to explain it from getting behind the curtain and going in and seeing the financial statements and the activities of some of these big companies and the publicly traded companies in many cases. Tell us how you feel in general about large corporations and their financial statements.
Male 2: Well, you’re right. Good question. Having started my accounting career early as an auditor and going out there and working with small and big size and then a second term as an auditor, working with larger companies, financial statements have a lot of issues to—I mean frankly there is a lot of estimates and complicated companies that operate worldwide deal with a lot of different issues in the countries they operate in. So, when you get a financial statement, it’s filled you know fortunately or unfortunately especially if it’s a complicated business, it’s filled with a lot of estimates. And as we know from—a lot of times what’s on a financial statement really is the reality. And when a lot of—and push those things at a financial statement on a reality into reality, we’ve realize there really is much behind magic curtain.
So, financial statements, you really got to be careful about and people who analyze financial statements in my experience really haven’t been out there in the trenches working behind the curtain to understand really what’s not on a financial statement that really gets published. So, I used to be a real big stock bond and mutual guy because I found that to be a very exciting industry to follow but then the more and more I really realize about it having lift through—I realize that maybe what’s on the financial statement isn’t as stable and static as you might think. So, I’ve really decided to grab and take my practice in my individual belief more towards hard assets which includes real estate and making money in areas that just isn’t so related to stock funds and mutual funds. And I still see a lot of clients and individuals whose tied portfolio is tied to the performance of our general stock market. So, I just try to educate people to get them to think that there are other ways to enhance your wealth other than just you know index funds, stocks funds and mutual funds, CD’s which we know don’t keep up with inflation. So, it is important I think that people consider owning some physical hard assets in the portfolio.
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