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Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage
     

Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage

3.6 47
by Mary Buffett
 

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With an insider's view of the mind of the master, Mary Buffett and David Clark have written a simple guide for reading financial statements from Warren Buffett's succccessful perspective.

Buffett and Clark clearly outline Warren Buffett's strategies in a way that will appeal to newcomers and seasoned Buffettologists alike. Inspired by the

Overview


With an insider's view of the mind of the master, Mary Buffett and David Clark have written a simple guide for reading financial statements from Warren Buffett's succccessful perspective.

Buffett and Clark clearly outline Warren Buffett's strategies in a way that will appeal to newcomers and seasoned Buffettologists alike. Inspired by the seminal work of Buffett's mentor, Benjamin Graham (The Interpretation of Financial Statements, 1937), this book presents Buffett's interpretation of financial statements with anecdotes and quotes from the master investor himself.

Potential investors will discover:

• Buffett's time-tested dos and don'ts for interpreting an income statement and balance sheet
• Why high research and development costs can kill a great business
• How much debt Buffett thinks a company can carry before it becomes too dangerous to touch
• The financial ratios and calculations that Buffett uses to identify the company with a durable competitive advantage -- which he believes makes for the winning long-term investment
• How Buffett uses financial statements to value a company
• What kinds of companies Warren stays away from no matter how cheap their selling price

Once readers complete and master Buffett's simple financial calculations and methods for interpreting a company's financial statement, they'll be well on their way to identifying which companies are going to be tomorrow's winners -- and which will be the losers they should avoid at all costs.

Destined to become a classic in the world of investment books, Warren Buffett and the Interpretation of Financial Statements is the perfect companion volume to The New Buffettology and The Tao of Warren Buffett.

Editorial Reviews

From the Publisher
"Just as top musicians memorize scales, and the best golfers perfect swings at the driving range, investors who want sustainable, good returns must master the critical basics that Mary Buffett and David Clark lay out for us in this clear explanation of Warren Buffett's methods. I don't think there has been a better time for investors to relearn the fundamentals. Follow these methods and you will see results!" - Timothy P. Vick, senior portfolio manager, The Sanibel Captiva Trust Company, and author of How to Pick Stocks Like Warren Buffett

Product Details

ISBN-13:
9781416575955
Publisher:
Scribner
Publication date:
10/14/2008
Sold by:
SIMON & SCHUSTER
Format:
NOOK Book
Pages:
224
Sales rank:
458,206
File size:
2 MB

Read an Excerpt


CHAPTER 1
Two Great Revelations That Made Warren the Richest Person in the World

In the mid-sixties Warren began to reexamine Benjamin Graham's investment strategies. In doing so he had two stunning revelations about what kinds of companies would make the best investments and the most money over the long run. As a direct result of these revelations he altered the Graham-based value investment strategy he had used up until that time and in the process created the greatest wealth-investment strategy the world has ever seen.

It is the purpose of this book to explore Warren's two revelations --

1. How do you identify an exceptional company with a durable competitive advantage?

2. How do you value a company with a durable competitive advantage?

-- to explain how his unique strategy works, and how he uses financial statements to put his strategy into practice. A practice that has made him the richest man in the world. Copyright © 2008 by Mary Buffett and David Clark

Meet the Author

For over twenty years, Mary Buffett has been considered a leading authority on the subject of Warren Buffett’s investment methods. Her international bestselling investment books, co-authored with David Clark—Buffettology, The Buffettology Workbook, The New Buffettology, The Tao of Warren Buffett, Warren Buffett and the Interpretation of Financial Statements, The Management Secrets of Warren Buffett, Warren Buffett and The Art of Stock Arbitrage, and The Warren Buffett Stock Portfolio—have been translated into twenty-four foreign languages and are considered “investment classics” the world over. Ms. Buffett is an international speaker, entrepreneur, political and environmental activist, and has appeared on television as one of the top finance experts worldwide. She has been the principal speaker for prestigious organizations around the world. Ms. Buffett has worked in a wide range of businesses including extensive work as a consultant to several Fortune 500 companies. She is an associate of the top ranked UK Buffettology Fund in the United Kingdom. In 2013 she became a contributing blogger to the Huffington Post. The blogs and information about the UK Buffettology Fund are on her website MaryBuffett.com.
For over twenty years, David Clark has been considered the world’s leading authority on the subject of Warren Buffett’s investment methods. His international bestselling investment books, co-authored with Mary Buffett—Buffettology, The Buffettology Workbook, The New Buffettology, The Tao of Warren Buffett, Warren Buffett and the Interpretation of Financial Statements, The Management Secrets of Warren Buffett, Warren Buffett and The Art of Stock Arbitrage, and The Warren Buffett Stock Portfolio—have been translated into more than twenty foreign languages and are considered “investment classics” the world over. He holds a B.S. degree in finance and a law degree from the University of California, Hastings College of the Law. He is presently writing Berkshire Hathaway: Fortress of Capital, a corporate biography. When not consumed with matters of finance, he is engaged in the second great passion of his life, which is trial law and maintains an active national practice.    

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Warren Buffett And The Interpretation Of Financial Statements [With CDROM] 3.6 out of 5 based on 0 ratings. 47 reviews.
Guest More than 1 year ago
This is the Buffett book I've dreamed of for years - how he reads a financial statement. Yea, we all know he buys when others are fearful, but how does he know what to buy??? This is the book that tells us what he is looking for in a company's financial statement to see if it is a company with, what Buffett calls, a durable competitive advantage. It also tells us what price Buffett is willing to pay for it. 'Pay too much for even a great company and you lose.' And the great part about it is I actually can understand what the authors are talking about!!! They make it really simple and straight forward. I highly recommend this book!!!!
RolfDobelli More than 1 year ago
Financial statements hold clues about the future performance of a company, and Warren Buffett¿s quest to find such clues has put him among the ranks of the wealthiest people in the world, according to Buffett experts Mary Buffett (his former daughter-in-law) and David Clark. Seeing the interpretation of financial statements through Warren Buffett¿s eyes is both instructive and insightful. He routinely calculates meaningful financial ratios from line items in financial statements to distinguish the most promising companies from the rest. Although financial novices may have the most to learn from this book, the authors include savvy bits of ¿Buffettology¿ for more seasoned investors¿ benefit. getAbstract recommends this book to readers who want a basic introduction to financial statement analysis and, perhaps more importantly, who want to learn how ¿the Oracle of Omaha¿ picks his winning investments.
Anonymous More than 1 year ago
Book has 50+ Chapters detailing a specific item as it may appear on a Corporate Balance Sheet with comments as to what Buffett may look for as an investment. Excellant reference book for investing Long Term.
Nightshade_XS More than 1 year ago
Any fan of Robert Kiyosaki's book Rich Dad Poor Dad will love this book. It goes deep into the heart of financial statements. Anyone who wants to really be successful needs to read this book as it will probably change people's lives. If I could sum up in two words how valuable this book is when it comes to financial statements I would say "Warren Buffet". That is all that needs to be said about this book and how it will help anyone become a Billionaire. If you don't believe me, then you probably should stay away from the Stock Market.
Anonymous More than 1 year ago
Completely demystified financial income statements, balance sheets, and cash flow summaries for me. And that ain't bad.
warrenzzz More than 1 year ago
Great book for beginner or intermediate investor.
Anonymous More than 1 year ago
Anonymous More than 1 year ago
Written in a simple, easy to understsnd way for the non-professional investor. Provides insight into how Warren Buffett selects his companies and stocks. This book will benefit any investor.
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SantaMonicaDave More than 1 year ago
Still an important text for business. I saw a comment about Rich Dad Poor Dad on here and I don't see the connection -- I think fits more with Michael Patrick's Blueprint for Billionaires or Jim Collins' Good to Great; two very solid texts that actually help in business.
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