Warren Buffett Accounting Book: Reading Financial Statements for Value Investing

Description

This book is the second volume to the Amazon Bestseller Warren Buffett's Three Favorite Books. In this book, you will learn how to: Pick stocks like Warren Buffett Calculate the intrinsic value of stocks using two methods During the second half of the book, readers will learn in-depth methods for: Read an income statement Read a balance sheet Read a cash flow statement Calculate and interpret key ratios Preface How to use this book......Page 6 Mr. Market and bubbles in the market......Page 13 Good news! The market is dropping......Page 16 Why stocks will make you wealthy......Page 19 Interest rates......Page 21 Inflation......Page 25 Bonds......Page 27 Chapter 3 A Brief Introduction to Financial Statements......Page 30 The income statement......Page 31 The balance sheet......Page 33 The cash flow statement......Page 37 Chapter 4 The Principles and Rules of Value Investing......Page 42 Principle 1—Vigilant leaders......Page 44 Principle 2—A company must have long-term prospects......Page 57 Principle 3—A company must be stable and understandable......Page 65 Principle 4—Buy at attractive prices......Page 74 Why are financial statements important to the stock investor?......Page 114 Accounting basics at a glance......Page 115 Introduction to the income statement......Page 123 Looking at the income statement with fresh eyes......Page 130 The single lines in the income statement......Page 133 A final review of the income statement......Page 141 Ratio analysis for the income statement......Page 143 Chapter 7 Balance Sheet in Detail......Page 149 Introduction to the balance sheet......Page 150 Assets......Page 152 Liabilities......Page 158 Equity......Page 163 Ratio analysis for the balance sheet......Page 170 Introduction to the cash flow statement......Page 179 Cash flow from operating activities (lines 1 - 6):......Page 181 Cash generated from investing activities (lines 7 - 11)......Page 186 Cash generated from financing activities (lines 12 - 17)......Page 189 Arriving at the net change in cash......Page 195 Key ratio analysis for the cash flow statement......Page 199 How was the BuffettsBooks.com Intrinsic Value Calculator derived?......Page 205 Accounting for a steady and growing dividend payment......Page 209 Accounting for growth in treasury stock......Page 212 Using the calculator for high-growth companies......Page 213