Warren Buffet and the Interpretation of Financial Statements effectively breaks down each of the three standard financial statements (the balance sheet, income statement and cash flow statement) to explain what a company with a durable competitive advantage will show for each item. The authors use clear language and a well-organized chapter structure to provide an easily understandable overview of the characteristics of a very good investment and the ratios and other tools necessary for basic analysis. Despite this, the book is very dry at certain points and can be overly simple for those who have taken courses in accounting. Overall, the book is a good read and is certainly a good bet for anyone interested in finance or accounting.
WARREN BUFFETT AND THE INTERPRETATION OF FINANCIAL STATEMENTS
The Search for the Company with a Durable Competitive Advantage
Mary Buffett and David Clark
Good post. Thanks ! I was only wondering if it is intended as a summary of the book Warren Buffett and the Interpretation of Financial Statements ?
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.