Buffettand Clark clearly outline WarrenBuffett‘s strategies in a way that will appeal to newcomers and seasoned Buffettologists alike. Inspired by the seminal work ofBuffett‘s mentor, Benjamin Graham (TheInterpretationofFinancialStatements, 1937), this book presents Buffett‘s interpretationoffinancialstatementswithanecdotes 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 researchand development costs can kill a great business
• How much debt Buffett thinks acompany can carry before it becomes too dangerous to touch
• Thefinancial ratios and calculations that Buffett uses to identify thecompanywithadurablecompetitiveadvantage — which he believes makes forthe winning long-term investment
• How Buffett uses financialstatements to value acompany
• 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 acompany‘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, WarrenBuffettandtheInterpretationofFinancialStatements is the perfect companion volume to The New Buffettology andThe Tao ofWarrenBuffett.