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Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage-Mary Buffett,David Clark

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

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



This is a small book that gives readers a very simplified view of how Warren Buffett may interpret income statements, balance sheets, and cash flow sheets. If you are new to investing and don't have a very deep financial or corporate background then you may find this book may suite you. It's written very plainly without any niche vernacular or fancy high minded ideas. There's no economic theory or market theory here. In fact, you could almost begin to formulate a checklist of what to look for and what thresholds to use for determining "good" and "bad" states.However, if you have some background in investing, economics, and markets then you may indeed find this book overly simplistic. You would say to yourself that the information in the book is obvious and can easily be found on the internet. In this case, rather than buy the book you may want to check it out at the library or just read it in one sitting right there and then.Personally, I am a novice when it comes to investing so I welcome any and all information. I look at my learning journey as digging for diamonds. Someone once told me that diamond miners find diamond chips all the time. Sometimes they find some really good nuggets. What they're really looking for is the next Koh-i-Noor. However, if they don't find it they still happily take the chips and nuggets. That's how I think you should take in this book.After reading this book I would recommend reading the latest edition of "The Warren Buffett Way" by Robert Hagstrom and "Creating a Portfolio like Warren Buffett : A High Return Investment Strategy" by Jeeva Ramaswamy.
If you have a decent understanding of reading financial statements, I would probably steer clear and find a different book to read. I almost feel like the author is using Warren Buffett's name to entice readers towards purchasing this book. I didn't learn much and was quite disappointed with the lack of more specific examples. It would've been nice to delve into actual financial statements of say GM, and detail where they went wrong.Overall would not recommend this book

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