Warren Buffett and the Interpretation of Financial Statements : The Search for the Company with a Durable Competitive Advantage
by Buffett, Mary; Clark, DavidEdition: 1st
Format: Hardcover
Pub. Date: 2008-10-14
Publisher(s): Scribner
Other versions by this Author
-
This Item Qualifies for Free Shipping!*
*Excludes marketplace orders.
List Price: $28.99
Buy New
Usually Ships in 2-3 Business Days
$28.70
Rent Book
Select for Price
Used Book
We're Sorry
Sold Out
eBook
We're Sorry
Not Available
How Marketplace Works:
- This item is offered by an independent seller and not shipped from our warehouse
- Item details like edition and cover design may differ from our description; see seller's comments before ordering.
- Sellers much confirm and ship within two business days; otherwise, the order will be cancelled and refunded.
- Marketplace purchases cannot be returned to eCampus.com. Contact the seller directly for inquiries; if no response within two days, contact customer service.
- Additional shipping costs apply to Marketplace purchases. Review shipping costs at checkout.
Summary
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 priceOnce 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 Statementsis the perfect companion volume toThe New BuffettologyandThe Tao of Warren Buffett.
Author Biography
Mary Buffett is the coauthor of Scribner’s bestselling Buffettology series, a sought-after business speaker world-wide, and a contributor to HuffPost and the online magazine Thrive Global. Mary and Sean Seah recently launched the Buffett Online School (BuffettOnlineSchool.com), a monthly webinar sharing investment insights and helping students learn to build successful stock portfolios.
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, coauthored 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 has once again joined forces with Mary Buffett, and together they are writing Warren Buffett Investment Analysis, an in-depth investment manual for professional and aspiring investors.
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, coauthored 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 has once again joined forces with Mary Buffett, and together they are writing Warren Buffett Investment Analysis, an in-depth investment manual for professional and aspiring investors.
Table of Contents
| Introduction | |
| Two Great Revelations That Made Warren the Richest Person in the World | |
| The Kind of Business That Will Make Warren Superrich | |
| Where Warren Starts His Search for the Exceptional Company | |
| Durability Is Warren's Ticket to Riches | |
| Financial Statement Overview: Where the Gold Is Hidden | |
| Where Warren Goes to Find Financial Information | |
| The Income Statement | |
| Where Warren Starts: The Income Statement | |
| Revenue: Where the Money Comes In | |
| Cost of Goods Sold: For Warren the Lower the Better | |
| Gross Profit/Gross Profit Margin: Key Numbers for Warren in His Search for Long-Term Gold | |
| Operating Expenses: Where Warren Keeps a Careful Eye | |
| Selling, General, and Administrative Expenses | |
| Research and Development: Why Warren Stays Away from It | |
| Depreciation: A Cost Warren Can't Ignore | |
| Interest Expense: What Warren Doesn't Want | |
| Gain (or Loss) on Sale of Assets and Other | |
| Income Before Tax: The Number That Warren Uses | |
| Income Taxes Paid: How Warren Knows Who Is Telling the Truth | |
| Net Earnings: What Warren Is Looking For | |
| Per-Share Earnings: How Warren Tells the Winners from the Losers | |
| Balance Sheet | |
| Balance Sheet in General | |
| Assets | |
| Current Asset Cycle: How the Money Is Made | |
| Cash and Cash Equivalents: Warren's Pile of Loot | |
| Inventory: What the Company Needs to Buy and What the Company Needs to Sell | |
| Net Receivables: Money Owed to the Company | |
| Prepaid Expenses/Other Current Assets | |
| Total Current Assets and the Current Ratio | |
| Property, Plant, and Equipment: For Warren Not Having Them Can Be a Good Thing | |
| Goodwill | |
| Intangible Assets: Measuring the Unmeasurable | |
| Long-Term Investments: One of the Secrets to Warren's Success | |
| Other Long-Term Assets | |
| Total Assets and the Return on Total Assets | |
| Current Liabilities | |
| Accounts Payable, Accrued Expenses, and Other Current Liabilities | |
| Short-Term Debt: How It Can Kill a Financial Institution | |
| Long-Term Debt Coming Due and the Troubles It Can Cause | |
| Total Current Liabilities and the Current Ratio | |
| Long-Term Debt: Something That Great Companies Don't Have a Lot Of | |
| Deferred Income Tax, Minority Interest, and Other Liabilities | |
| Total Liabilities and the Debt to Shareholders' Equity Ratio | |
| Shareholders' Equity/Book Value | |
| Preferred and Common Stock: Additional Paid in Capital | |
| Retained Earnings: Warren's Secret for Getting Superrich | |
| Treasury Stock: Warren Likes to See This on the Balance Sheet | |
| Return on Shareholders' Equity: Part One | |
| Return on Shareholders' Equity: Part Two | |
| The Problem with Leverage and the Tricks It Can Play on You | |
| The Cash Flow Statement | |
| The Cash Flow Statement: Where Warren Goes to Find the Cash | |
| Capital Expenditures: Not Having Them Is One of the Secrets to Getting Rich | |
| Stock Buybacks: Warren's Tax-Free Way to Increase Shareholder Wealth | |
| Valuing The Company with a Durable Competitive Advantage | |
| Warren's Revolutionary Idea of the Equity Bond and How It Has Made Him Superrich | |
| The Ever-Increasing Yield Created by the Durable Competitive Advantage | |
| More Ways to Value a Company with a Durable Competitive Advantage | |
| How Warren Determines the Right Time to Buy a Fantastic Business | |
| How Warren Determines It Is Time to Sell | |
| Appendix | |
| Select Glossary of Terms | |
| Acknowledgments | |
| Index | |
| Table of Contents provided by Publisher. All Rights Reserved. |
Excerpts
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 tworevelations --
1. How do you identify an exceptional company with adurable competitive advantage?
2. How do you value a company with a durable competitiveadvantage?
-- 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
Excerpted from Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage by Mary Buffett, David Clark
All rights reserved by the original copyright owners. Excerpts are provided for display purposes only and may not be reproduced, reprinted or distributed without the written permission of the publisher.
An electronic version of this book is available through VitalSource.
This book is viewable on PC, Mac, iPhone, iPad, iPod Touch, and most smartphones.
By purchasing, you will be able to view this book online, as well as download it, for the chosen number of days.
Digital License
You are licensing a digital product for a set duration. Durations are set forth in the product description, with "Lifetime" typically meaning five (5) years of online access and permanent download to a supported device. All licenses are non-transferable.
More details can be found here.
A downloadable version of this book is available through the eCampus Reader or compatible Adobe readers.
Applications are available on iOS, Android, PC, Mac, and Windows Mobile platforms.
Please view the compatibility matrix prior to purchase.