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Too Much Goodwill: A Red Flag For Your Portfolio

Analysts and investors tend to spend very little time on Goodwill when looking at financial statements. In reality, Goodwill is an important number to keep an eye on. Since it reflects the money paid for acquisitions above the market value of the acquired company, it can signal overpayment, reckless spending, and the potential for damaging write-downs in the near future.
by Sam McBride