Some financial statements can change their appearance, much like a chameleon blending into its surroundings. With a few tweaks or creative metrics, even losses can look less concerning. Take WeWork’s* “Community-Adjusted EBITDA” as an example, it was like labelling junk food as healthy. However, forensic analysis is like a predator that uncovers the truth, and strong governance ensures companies can’t hide their flaws forever. Research consistently shows that businesses with solid corporate governance are better managed, more sustainable, and ultimately more valuable.

*Note: The above should not be construed as a recommendation to buy/sell any stocks specified above. The above content is based on the internal research process. The AMC may or may not hold the above stock in its portfolio. Investors should consult their own advisors, and tax consultants before making any decision.