Warren Buffett and the Interpretation of Financial Statements

  • by Mary Buffett, David Clark
  • Narrated by Karen White
  • 3 hrs and 10 mins
  • Unabridged Audiobook

Publisher's Summary

Mary Buffett and David 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 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.


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Customer Reviews

Most Helpful

A great basic walk-through

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.
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- Phil O.

Good basic to intermediate financial analysis concepts

Not for the advanced financial analyst, but most will get a few nuggets from this book.
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- Aaron

Book Details

  • Release Date: 12-01-2008
  • Publisher: Tantor Audio