Warren Buffett and the Interpretation of Financial Statements

In this summary, you will learn

• How Warren Buffett uses financial statements to identify superior companies with solid competitive advantages
• What he looks for in three types of financial statements
• Why he pays special attention to certain ratios

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Why you should read Warren Buffett and the Interpretation of Financial Statements

Financial statements hold clues about the future performance of a company, and Warren Buffett’s quest to find such clues has put him among the ranks of the wealthiest people in the world, according to Buffett experts Mary Buffett (his former daughter-in-law) and David Clark. Seeing the interpretation of financial statements through Warren Buffett’s eyes is both instructive and insightful. He routinely calculates meaningful financial ratios from line items in financial statements to distinguish the most promising companies from the rest. Although financial novices may have the most to learn from this book, the authors include savvy bits of “Buffettology” for more seasoned investors’ benefit. getAbstract recommends this book to readers who want a basic introduction to financial statement analysis and, perhaps more importantly, who want to learn how “the Oracle of Omaha” picks his winning investments.

About the Authors

Mary Buffett and David Clark have written four other books on how Warren Buffett makes investment decisions. An author and speaker, she was Warren Buffett’s daughter-in-law from 1981 to 1993. Clark is the managing partner of a private investment group.