Hi Micah Lance ...
Here is a copy of my reply to your original post on "Value Investing" ....
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" ... would you still recommend "Buffett and the Interpretation of Financial Statements"?"
Yes, I certainly would.
I don't know how much you know about being able to read and interrogate the 3 important Financial Statements, namely "Income Statement", "Balance Sheet" and Cash Flow Statement", but if you aren't that familiar with them then that book will tell you all you need to know in a clear and simple way.
IMO, it's very important to be able to read and fully understand those 3 statements, because how else will you know how a business is performing ?
And apart from the above, that book tells you what components of those 3 statements Buffett targets in order to, primarily, discover companies that have Durable Competitive Advantage.
It tells you what target financial ratios Buffett puts together and how he uses them.
That, IMO, is one of the most important aspects of that book, because if a company can SIMULTANEOUSLY meet or beat all, or most, of those ratios then it's most unlikely that it is performing badly as a business. If you haven't already seen it, I have put most of those Buffett ratios in the header of my board.
It also tells you how Buffett uses his "Equity Bond" theory where he looks at a company's pretax earnings and determines if the purchase is a good deal relative to the economic strength of the company's underlying economics and the price being asked for the business.
You'll discover how Buffett determines when is the right time to buy or sell a business
Is the "Buffettology" that you referred to, the one entitled "The Buffettology Workbook" ?
I have a copy of it and it does cover some aspects of " .. Interpretation of Financial Statements".
However, it was written and published before " ... Interpretation ...".
I also have "Common Stocks and Uncommon Profits", by Philip Fisher, on my book shelf. It's an interesting read and makes business sense. However, it doesn't go into the practical and useful detail about interrogating and using Financial Statements as does the " ... Interpretation ..." book. |
