Warren Buffett Accounting Book: Reading Financial Statements for Value Investing

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