Book Review: Warren Buffet and the Interpretation of Financial Statements by Mary Buffet and David Clark.

Warren Buffet and the Interpretation of Financial Statements by Mary Buffet and David Clark.
Have you ever wondered how certain people make it to be very rich - I mean VERY RICH? This question has been constantly on my mind over the past one year as I try to find my path to the rich and wealthy club (and hopefully Very Wealthy Club).
What other better way to learn about making money than to learn from one of the richest people in the world and one who has been called the world's greatest investor - Warren Buffet.
The book purposes to explore Warren's two revelations :
1. How to identify an exceptional company with a durable competitive advantage? And
2. How to value a company with a durable competitive advantage?
The authors explain how Warren's unique strategy works and how he uses financial statements to put his strategy into practice. A practice that has really worked for him.
Although the title can scare some of us with no background in finance, I can assure you that indeph accounting knowledge is not required for you to get the main ideas and apply his techniques.
The bottom line is that Warren has learned that time will make him superrich when he invests in a company that has a durable competitive advantage working in its favor.
Warren has made the decision to stay away from any business he doesn't understand.
Two extracts from the book :
1. "Cash is king when troubled times hit, so if we have it when our competitors don't, we get to rule."

2. "Producing a consistent product that doesn't have to change equates to consistent profits. The consistent product means there is no need to spend tons of money upgrading the plant and equipment just to stay competitive, which frees up tons of money for other money-making ventures. To get rich, we first have to make money, and it helps if we make lots of money. One of the ways to make lots of money is not having to spend a ton of money keeping up with the Joneses "


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