As someone who tends to worry too much, I find the risk factors section of Annual reports can be fascinating. This is where company management details all the things they see that might happen that would cause a material change in their business results.

Some management appears to worry more than others. Some list pretty general factors but some of the writeups are pretty specific. They can give you a good insight into what it takes to run the business. If you're not careful though, it can be kind kind of like reading the warnings in prescription drug ads. If you worry a lot you might never invest in any company after reading the notes.

Astute annual reports readers often find it most interesting to compare what changes from one report to the next. Here is an interesting perspective on recent events at Walgreens (WAG), a company many of your investment clubs hold shares of.

Laurie Frederiksen
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