Potential investors will discover:
Once audiences complete and master Buffett's simple financial calculations and methods for interpreting a company's financial statement, they will be well on their way to identifying which companies are going to be tomorrow's winners - and which will be the losers that should be avoided 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.
©2008 Mary Buffett and David Clark; (P)2008 Tantor
Being a Buffett-based book, it is aimed at building a buy-and-hold portfolio. It distinguishes Mr Buffett's approach from that of his mentor in value investing, Mr Graham. While Graham fished for underpriced stocks of all kinds, and unloaded them when certain criteria in gains were met, Buffett looks for more durable advantages for long-term returns on investment.
I would term this "introductory," in reciting basic financial statement contents, meanings and inferences about companies one can get (pretty readily) from financial statements that are publicly available. Aside from the endless repetition of certain phrases ("durable competitive advantage," "getting rich"), it is highly listenable and chock-full of logic and common sense. It was a nice refresher for my financial accounting basics with added value, since my financial accounting class covered a lot of nuts and bolts, but not much about interpretation. While some of these points were apparent from my own observations, much had not occurred to me, e.g., aspects of a company's investments in other companies. There are red flags here that help show potential hard sledding ahead for companies. This got me thinking about lots of companies in today's landscape in different ways, in terms of challenges they face.
If I could have received a dollar for each time those two phrases were mentioned I would be super rich too, just like Warren Buffet. Enjoyed the information, however I felt there was too much emphasis on being and getting super rich just like Warren Buffet by finding companies with a durable competitive advantage . I was looking more for information on financial statements...
Not for the advanced financial analyst, but most will get a few nuggets from this book.
Why is this not the full book? You can tell because it skips chapters. However, this is a new perspective for interpreting financial statements that you don't get from simply reading a "how to".
When the Student Is Ready The Teacher (BOOKS) Appears....
Great 3 book series, Even if you dont purchase stock from one of these great company, Warren laysout the blue print of how you should run your own business (if you have one), and how to keep your books.
It's a great book to help you get past the usual Wall Street delusions and really start thinking about company values. There is lots of very basic info and the last third of the book starts to get down to tin tacks but lacks the depth of coverage to really educate and equip investors.
Although all the math is very simple, without a printed copy to follow along with, it is hard to learn the knub of the different analyses discussed and work through them yourself.
However it is a good whistle whetter to get you started in doing tut own research into the fundamentals of listed companies.
This is how "how to" books should be written -- a guide to accomplishing a task, pointing out signposts signaling great (or mediocre) investing opportunities.
This simple book put the majority of "The Little Book" series to shame.
If you're a Value Investor ... Buy! Buy! Buy!
Great listen and informative
Short and sweet
Brief review as it was meant to be
Worth listening several times
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