Episode 7 - Stephen Clapham

In this episode we travel across the pond to chat with
internationally renowned forensic accountant and author Steven
Clapham. Steven talks to us about life as a sell-side analyst,
his due diligence work when vetting a company, and his book “The
Smart Money Method.”


When he’s not providing research for private clients, Stephen is
educating the next generation of analysts with his online
investment research and analysis training course - Behind the
Balance Sheet.


Sit back, have a drink, and enjoy a conversation with Dan and The
Pack as they swap stories with award-winning forensic accountant
Stephen Clapham.


• 3:55 – Have you ever wondered what qualifications you need to
be a sell-side analyst? According to Stephen – none. • 11:20 -
The importance of knowing a company’s balance sheet and why
Stephen thinks most investors pay little to no attention to it –
at their own peril. • 12:46 - GAAP, Non-GAAP, and the real
numbers in a company’s books. • 17:44 – Stephen’s independent
view as a sell-side analyst doesn’t go over too well with one of
the large banking firms. • 21:44 – Stephen moves to the buy-side
and finds telling the whole truth much more rewarding. • 25:32 –
The repercussions of not trusting a company’s CEO. • 33:55 – Why
you “can’t prove” Alibaba is a fraud. • 42:58 – Auditors: do they
matter, and if so, how much? • 47:12 – “It’s impossible for a
company to commit fraud … people commit fraud.” Fraud – who’s
committing it and who pays for it? • 49:10 – “Would we be better
off without audits?” • 52:53 – Trained and Equipped: the
importance of understanding the equities. • 56:34 – “The Old Boys
Club,” Jamie Dimon, and the lack of true independent directors. •
101:11 – Stephen develops Behind the Balance Sheet, providing
research and consultancy, and educating the next generation of
analysts.