I delve into why understanding financial statements is crucial for evaluating businesses effectively, especially beyond the initial allure of their missions or funding. Initially, I based my assessments on subjective criteria due to my engineering background. However, witnessing Silicon Valley's volatility taught me the importance of financial statements for making informed decisions, both for investments and career choices. I share insights from resources like Harvard Business School on how to analyze balance sheets, income statements, and cash flow statements to gauge a company's health and potential.