WARREN BUFFETT AND THE INTERPRETATION OF FINANCIAL STATEMENTS

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  • Опубліковано 22 тра 2024
  • Support the channel by getting your copy of Warren Buffett and the Interpretation of Financial Statements by Mary Buffett and David Clark here: amzn.to/35l49Wn
    As an Amazon Associate I earn from qualified purchases.
    ---
    Warren Buffett is one of the richest men in the world. One of the key components to his multi-billionaire success has been his ability buy companies with a sustainable competitive advantage. Think Coca-Cola, Moody’s or See’s Candy. For this video, we are going to see if we can mimic his success on how to make money, by learning how to identify companies with such a sustainable competitive advantage. More specifically, we are going to learn how to do this by analysing a stock market company’s financial statements - the income statement, the balance sheet and the cash flow statement. This is a top 5 takeaways video of “Warren Buffett and the interpretation of financial statements”, written by Mary Buffett and David Clark.
    ---
    My main tool for fundamental screening and analysis of stocks: app.tikr.com/register?ref=tsi
    (If you sign up I earn a small commission)
    ---
    Top 5 takeaways from Warren Buffett and the Interpretation of Financial Statements:
    00:00 Intro
    01:25 1. Consistency is King
    03:32 2. What Warren Buffett is Looking for in an Income Statement
    05:40 3. What Warren Buffett is Looking for in a Balance Sheet
    08:00 4. What Warren Buffett is Looking for in a Cashflow Statement
    09:50 5. When to Sell
    ---
    TL;DW:
    - When you are looking for a business with a durable competitive advantage, the keyword is consistency
    - In the income statement, look for consistently growing net earnings and profit margins that consistently beat the competitors
    - When observing the balance sheet, remember that the superior business has a high return on capital, that it seldom requires a lot of debt, and that retained earnings typically shows a steady growth
    - In the cash flow statement, you want to make sure that the business is producing money for its shareholders, by examining its capital expenditures
    - Even a fantastic business should be sold if you need money elsewhere, its competitive advantage is at stake, or if the price tag is at a crazy level
    ---
    My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there - investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties - I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process - upgrading your money-making toolbox.

КОМЕНТАРІ • 594

  • @TheSwedishInvestor
    @TheSwedishInvestor  4 роки тому +70

    Playlist on how to master stock market accounting: bit.ly/2ScRdfk

    • @naughtypleasure8712
      @naughtypleasure8712 4 роки тому +2

      The Swedish Investor,
      I'm curious what does an investment means to you?
      For me investment a way to protecting and growing wealth.
      From inflation and economic dynamics of politics of the continents.
      But Creating Wealth and earning money or growing richer in my opinion is possible only by providing relative value to as much people as possible.
      I'd like to hear your thoughts on the subject if you don't mind.
      By the way thank you for this wonderful summery.
      Always looking forward to watching your videos summaries.

    • @VerHammerTime
      @VerHammerTime 4 роки тому +1

      Poor Charlie's almanak!! Maybe impossible

    • @masoneggers6806
      @masoneggers6806 4 роки тому +1

      I want it

    • @theshawndavisshow
      @theshawndavisshow 4 роки тому

      He's making I want it

    • @xaviermoulin7697
      @xaviermoulin7697 4 роки тому +1

      Would you mind doing 5 takeaways about how to win friends and influence people by Dale Carnegie? They refer to it at the beginning. Thanks for your work, it’s awesome!

  • @overplayed3553
    @overplayed3553 3 роки тому +496

    i literally watched this video for 2 hours, swear to god, i rewatched and searched up every question and now i fully understand it and grinding hard on my algorithm now thanks

    • @TheSwedishInvestor
      @TheSwedishInvestor  3 роки тому +37

      I'm happy to hear it over played! Hopefully you've gained some new screening ideas!

    • @overplayed3553
      @overplayed3553 3 роки тому +11

      @@TheSwedishInvestor yea i definitely did wrote down all the key things to look for and understand all the terminology

    • @overplayed3553
      @overplayed3553 2 роки тому +2

      @Eccentric i meant algorithm by everything he explains, like net margin and all the formulas , what to look for i used, debt, etc

    • @overplayed3553
      @overplayed3553 2 роки тому

      yes it would only be useful in technical analysis

    • @1998trades
      @1998trades 2 роки тому +4

      I swear yr right! Im doing this for 3 hours now, watching the video and writing "terminology, calculation methods, interpretation" and i love the fact i finally can understand this better. Thanks @The Swedish Investor !

  • @Rugbystu14
    @Rugbystu14 4 роки тому +59

    This video is insanely good! Thank you so much for taking the time to explain it so well. There's obviously more too look into, but this is an essential part of the research.

  • @JoseCarver
    @JoseCarver 3 роки тому +23

    Great video. Easy to understand, straightforward and no unnecessary information. Thanks.

  • @simplemarketknowledge3958
    @simplemarketknowledge3958 4 роки тому +14

    Very simplified. Would love to see a video on cash flow statement more in depth! Thank you for the videos!

  • @fisherh9111
    @fisherh9111 4 роки тому +28

    These summaries by you are excellent Sweedish. More of everything please!!

    • @NazriB
      @NazriB 2 роки тому

      Lies again? Hello FAS

  • @Mrfunkyerik
    @Mrfunkyerik 4 роки тому +71

    I want it! Give us the Cash flow statement, please!

  • @brandinfisher
    @brandinfisher 4 роки тому +4

    Thank you for this video, I just added this book to my must read list.

  • @GenExDividendInvestor
    @GenExDividendInvestor 4 роки тому +16

    Helpful analysis, thank you! I’m confident everyone wants it :)

  • @kidstv3313
    @kidstv3313 3 роки тому +6

    Awesome video. Paused, rewind, replayed multiple times. Good work!!!

  • @patrickomeley9481
    @patrickomeley9481 2 роки тому +8

    You know it is good content when you want to watch it over and over to get the finer details - - great job!

  • @biggyboyy1
    @biggyboyy1 4 роки тому +18

    Thank you for publishing these wonderful, educational videos. I am learning a LOT from you. Please continue! JM

  • @vsatish-ib5uu
    @vsatish-ib5uu 4 роки тому +3

    very nicely compiled.. greatest points to look at the balance sheet.
    Animation and representation is simply superb.

  • @pabloarielmendez2462
    @pabloarielmendez2462 3 роки тому +2

    Thank you for all your effort in putting this together. Fantastic Video!

  • @teacherdavid--eatplaylearn5013
    @teacherdavid--eatplaylearn5013 4 роки тому +1

    Thank you for your GREAT content and GREAT summary at the end as well so we CAN remember the key points better !🥳
    God bless you !😇🤗
    BLESSING from Taiwan ! 🤓😎

  • @kilbill5979
    @kilbill5979 3 роки тому +9

    OMG This vid cannot get any better. Right on the point that I wanted. Thank you so bad

  • @kristopherlorenzana7770
    @kristopherlorenzana7770 3 роки тому +4

    This was a great intro video for a beginner investor ! Thank you so much ! Liked and subscribed great content

  • @umararyan2117
    @umararyan2117 Рік тому +1

    This was incredible! thank you so much for explaining it so well.

  • @AndreasChristianto
    @AndreasChristianto 4 роки тому +130

    8:27 I WANT IT

  • @andresantos4470
    @andresantos4470 4 роки тому +3

    It would be really interesting if you could make series of videos suming up the books instead of only the 5 takeaways approach.
    Nice work so far though, really enjoy the content.

  • @audace8788
    @audace8788 Рік тому +19

    Can't believe this. Investing seemed so complex, but a simplification of Buffett's methods and breaking down the method into the most important parts made it so easy to understand.
    I shall be recommending this video to my investing community.

    • @Art-is-craft
      @Art-is-craft Місяць тому

      That is only the financial side of. It does not address the businesses operations, business quality or market. A quality business will have different attributes.

  • @Serpolinidate
    @Serpolinidate 4 роки тому +2

    One of the best video produced, the foundations for good investments. Btw, I want it (CF statement!)

  • @mogrosso6308
    @mogrosso6308 Рік тому +1

    Thank you for publishing these wonderful, educational videos. I am learning a LOT from you.

  • @inspiramind5445
    @inspiramind5445 2 роки тому

    This is a great video. I will use it as part of my teachings which, I believe, will bring a lot of visitors to this video.
    Thank you! 😊👍👍👍

  • @InvestingEducation
    @InvestingEducation 4 роки тому +10

    Great share. I am just trying to copy Buffett's style for my portfolio on my channel even if our stocks differ.

  • @dileenafernando7472
    @dileenafernando7472 2 роки тому +2

    Hey there.. thank you soo much for this video.... gave me a broader understnding about investing in stock and explained in the most basic way that was easier for me to understand, especially for someone from Sri Lanka where english is a 2nd language.... looking forward to see more content like this. Goodluck, cheers :)

  • @henryp218
    @henryp218 11 місяців тому

    Thank you so much for summarising his books.

  • @user-ry2um8vt6c
    @user-ry2um8vt6c 2 роки тому +6

    3:38 income statement
    5:48 balance sheet
    return on net tangible assets
    little to no long term debt
    8:09 cashflow statement
    capital expenditures lower than 25 good lower than 50 acceptable
    9:57 when to sell
    better investment
    lose of competitive advantage
    crazy bull market P/E ratio 40 or higher

  • @cristianbaranga7301
    @cristianbaranga7301 2 роки тому

    Thank you for making this videos.
    I`m happy I found your channel.

  • @jaap8232
    @jaap8232 4 роки тому +3

    Love these video's, great work

  • @nitroboy246
    @nitroboy246 4 роки тому +2

    I want it, thank you for your work!

  • @griffinobie
    @griffinobie 3 роки тому +3

    Summaries are a great way to consume knowledge you value much faster. One thing I have come to understand deeply, however, is that reading the book 📙 itself puts into context the words of @The Swedish Investor. With that said, thank you for the reinforcement your videos give to my understanding of these books.

    • @TheSwedishInvestor
      @TheSwedishInvestor  3 роки тому

      I agree with that. Reading the book too will make you more convinced than a 15 minute video can do.

  • @philroberts1069
    @philroberts1069 4 роки тому +2

    Great vid again Swedish Investor! Although I'm going to have to look at my filters again because of your videos :)

  • @xxmaztaxx
    @xxmaztaxx 4 роки тому +2

    I really appreciate your videos, keep it up :)

  • @dollydarshan24
    @dollydarshan24 3 місяці тому

    Cannot get better than this. Brilliant!!! I WANT IT.

  • @youtubedotcom579
    @youtubedotcom579 2 роки тому +4

    This channel is very under valued, you deserve a million subscribers Sir.

  • @user-cu7pj9oy7g
    @user-cu7pj9oy7g 4 роки тому +4

    Thank you so much!) We want more videos about fundamentals of the company!

  • @poorinvestor
    @poorinvestor 3 роки тому +4

    i have watched this video over so many times to analyze the stocks I'm about to invest in. thank you for the simplistic explanation!

    • @bitu2715
      @bitu2715 2 роки тому +1

      Are u earning now?

  • @doeunkwon4607
    @doeunkwon4607 3 роки тому +1

    Definitely the best UA-cam video I've watched on interpreting financial statements👍🏼

  • @daniellewilliams1554
    @daniellewilliams1554 3 роки тому +4

    Yes! I want a video on cash flow statements!

  • @peterl6417
    @peterl6417 2 роки тому

    Really great video, easy to understand and lot's of information!

  • @jojochip1
    @jojochip1 2 роки тому

    Thanks for video and it’s so easy to understand!

  • @LimonSqueeZ
    @LimonSqueeZ 3 роки тому +4

    Hey man, I wanted to start off by saying that I appreciate your videos! I'm a little late here obviously, but I wanted to show you this after not being able to replicate the numbers you shared here.
    I went to Apple's filings on the SEC, and in the 10-K for 2017 it says: "The Company’s capital expenditures were $14.9 billion during 2017."
    There is an inconsistency here, because on your chart you have around $12.5 billion for Apple's 2017 capital expenditures. I have checked and all of the Capex numbers you have are different than the ones reported directly to the SEC.

  • @discoveringme941
    @discoveringme941 4 роки тому +7

    When looking at sees candies they only had a CAGR of just over 5% from 1971 to 2019. Growing from $25M to $300m

  • @11Alisher
    @11Alisher 4 роки тому +7

    My favourite quote by Warren Buffett said, "Be fearful when others are greedy. Be greedy when others are fearful"

  • @lukesaxtaxman867
    @lukesaxtaxman867 3 роки тому

    thx for the video, its about time this accounting degree paid off...cash flow statement is definitely important and more details are wanted. Learned about the augmented payout ratio thank you for that. Free-Cash Flow is also important as well as amounts spend on investments and acquisitions. GARP (growth at a reasonable price) investors like to see acquisitions and expansions of the business....

  • @StoryShotsApp
    @StoryShotsApp 4 роки тому

    Tack för den här. Har du någon plan for I will teach you to be rich: the second edition?

  • @gordongordon98
    @gordongordon98 3 роки тому +2

    This is great, thanks.

  • @radzirosli2974
    @radzirosli2974 4 роки тому +1

    I love video like this man,and I WANT IT at 8.27

  • @nileshagarwadkar5070
    @nileshagarwadkar5070 3 роки тому

    Very Well summarized and explained.

  • @harshitjotwani7604
    @harshitjotwani7604 4 роки тому +2

    I am going to start a business and Warren Buffett's books will teach me finance part of business pretty well.

    • @drek273
      @drek273 3 роки тому

      make sure you study accounting

  • @epicman2211
    @epicman2211 4 роки тому +121

    I want it. Make a video on a accounting book

  • @willem9046
    @willem9046 2 роки тому

    hey! Can you use half year reports to do fundamental analysis? Or should you use annual reports from the year before then?

  • @stevmaister
    @stevmaister 4 роки тому

    I want it. Thanks very much for this video

  • @aaronkohlhoff
    @aaronkohlhoff 4 роки тому +1

    Thanks alot
    from India

  • @minhductran4432
    @minhductran4432 2 роки тому

    This's really helpful. Thanks

  • @ministry_of_love
    @ministry_of_love 2 роки тому

    Great video. Helps me alot in my retail investing.

  • @tonymoore1477
    @tonymoore1477 Рік тому

    Love your videos, great work, is there any videos with a list of all the various sayings as I get confused with which one to use in the 10 -K forms, example, some say revenue others net income, others total sales etc etc, some companies change from year to year, then depending on what sort of business sector their in they will have some other word for this example "total revenue". Also other financial information in the 10Ks appear different, makes it hard to know which figures to use to get the calculations correct, sorry not an accountant, just a labourer on minimum wage (US$300) per week and trying to get some money banked before my body says enough hard labour

  • @martinhood9451
    @martinhood9451 Рік тому

    Excellent content. Thank you so much!

  • @soulflyprophecy
    @soulflyprophecy 3 роки тому

    Great video, thank you!

  • @KC-pm1fv
    @KC-pm1fv 3 роки тому +2

    Great video. Also, I want it! Cheers

  • @victor53088124
    @victor53088124 4 роки тому +4

    Love your content Swedish investor . Surely a very underated Chanel while those who creates useless distracting contents gets millions of subs.I think Your take aways are really accurate because I have watched your contents on books that I have already read .I am not a fast reader ,for me reading a book does take quite a bit of time .
    So I have a question for you . A lot of books that you reviewed are on my "going to read list ". After watching your video It makes me wonder if I should read the book or your take aways points are already all what I need to learn from the book. Do you mind taking a few seconds at the end of the video to tell the viewers : after the take away videos ,is the book is still worth reading or not ? Thanks

    • @seanmartin8370
      @seanmartin8370 2 роки тому +1

      I think you should try practicing your reading elsewhere, and focus on the takeaways. Eventually you’ll be able to read higher level and you won’t have stressed yourself over the information which will actually allow you to learn.

  • @norwich2257
    @norwich2257 3 роки тому

    Learned a lot. Thanks

  • @lazizatabaev7449
    @lazizatabaev7449 3 роки тому

    Thx for a great video and content in it.

  • @jvilletaylor
    @jvilletaylor 3 роки тому

    Great video! Thank you so much

  • @hunghueitiong7749
    @hunghueitiong7749 4 роки тому

    Very good presentation and insight analysis

  • @llllari
    @llllari 3 роки тому +1

    I want it! (A video about cashflow/income statement)

  • @frosherman
    @frosherman 3 роки тому

    such a great video with quite good explaings

  • @dawaon1
    @dawaon1 3 роки тому

    Thank u so much. I want more.

  • @TMYB
    @TMYB 3 роки тому

    Thank you for this

  • @terry7893
    @terry7893 2 роки тому

    Excellent video. Thank you.

  • @JonBallRealEstate
    @JonBallRealEstate 11 місяців тому

    This video is amazing. It makes it really simple. I've dumbed it down even more. However I've found stuff i'm confused about. Can I ask, What % does an investor like Warren Buffet want on RoE or RoNTA?

  • @luizcarlosazevedo9558
    @luizcarlosazevedo9558 Рік тому

    Hey, where did u get FY09 data at 3:47 from? Because i got mine from the 10k's and it differs (every other year doesnt). Also, your content is really rich and valuable, thanks for helping everyone!

  • @wenniewinawaty
    @wenniewinawaty 4 роки тому

    hi there! is there any book you can do to see what to look out for, for unit trust? thank you so much!

  • @yogeswaran2326
    @yogeswaran2326 4 роки тому

    Excellent explanation. I want it

  • @rafaelg.9962
    @rafaelg.9962 Рік тому

    Thank you very much !!!

  • @ramanghimire3255
    @ramanghimire3255 Рік тому

    Thanks for the wonderful video. Made it easier

  • @shamshermann
    @shamshermann 3 роки тому +1

    Brilliant video. Subscribed and now going to go through all your videos. Succinct and spot on. Cheers from India 🇮🇳

  • @guydavidovich137
    @guydavidovich137 2 роки тому

    hey thanks for the video, what site do you use for the charts? cause main does not have Capital Expenditure and

  • @moon87star
    @moon87star 2 роки тому

    Very useful video..thank you

  • @cameronw4535
    @cameronw4535 2 роки тому

    Yes, more on Cash Flow Statement!

  • @developer36able
    @developer36able 2 роки тому

    Hey thank for this video! How did you come up with the pay off long term debt calculation on at 7:52.

  • @rezahabiby8888
    @rezahabiby8888 4 роки тому

    helpful as always

  • @t.j.5574
    @t.j.5574 Рік тому

    A fantastic video as always!

  • @alvarojurado2199
    @alvarojurado2199 Рік тому

    good job on this video. make another on #4

  • @fiatluks
    @fiatluks 3 роки тому

    Keep up with the good work!

  • @tomaszmazur8675
    @tomaszmazur8675 2 роки тому +6

    I'm reading the book currently and I recomend it to everybody. Together with this video it makes things even easier. Great job! Thank you.

    • @timothymullen1584
      @timothymullen1584 2 роки тому

      What’s the name of the book?

    • @ZZZer00
      @ZZZer00 Рік тому

      @@timothymullen1584 it's literally the title

    • @davidmercado2329
      @davidmercado2329 7 місяців тому

      Warren buffet and the interpretation of financial statements

  • @MrUmxhosa
    @MrUmxhosa 3 роки тому

    Brilliant video 🙌🏾

  • @manahilrose1466
    @manahilrose1466 3 роки тому

    Beautiful crafted content.

  • @michellewang445
    @michellewang445 3 місяці тому

    Your videos are changing peoples lives❤

  • @tsekeretsam
    @tsekeretsam 2 роки тому

    Hello, can You give us some info about sites where We can have access to balance sheets, income statements etc. ?
    Great work! Thank You!

  • @brunorossijulio
    @brunorossijulio 4 роки тому

    Great video by the way!

  • @CamboESL45
    @CamboESL45 3 роки тому

    thank you for explanation

  • @moisesc.8314
    @moisesc.8314 4 роки тому

    this is a great video, Thank you for taking the time to explained it. Do you know where to actually find the income statement of a specific company? which website would I use?

    • @jb7965
      @jb7965 4 роки тому

      marketwatch (dot) com is best and free to use imo. Click on magnifying glass symbol in top right and enter name of any company you want to find, then click on financials.

    • @robimgabriel8063
      @robimgabriel8063 4 роки тому

      SEC>EDGAR>Company name

  • @moking1
    @moking1 Рік тому

    Thank you so much ❤

  • @wanghaowang5790
    @wanghaowang5790 5 місяців тому

    Thanks for sharing

  • @popularjet
    @popularjet 4 роки тому +1

    Yes, I want it.

  • @filiperodrigues1480
    @filiperodrigues1480 2 роки тому

    Congratulations by the video
    It´s very helpfull
    Where can I find the information that I need to value a stock?
    Thanks

  • @itsmeclaire5426
    @itsmeclaire5426 2 роки тому

    Thank you

  • @jnb816
    @jnb816 2 роки тому +1

    Hey man, I really like your Videos! Which program do you use to make these kinds of videos? I am a teacher and think it might be cool, if create these kind of videos for a broader audience like you do. Maybe anyone knows! Thanks in advance and keep up the great content!

    • @andersstensen2403
      @andersstensen2403 2 роки тому

      Look for inspiration on Fiverr. i'm not sure what he is using.