Warren Buffett and the Interpretations of Financial Statements: The Search For the Company with a Durable Competitive Advantage

Introduction Chapter 1: Two Great Revelations That Made Warren the Richest Person in the World Chapter 2: The Kind of Business That Will Make Warren Superrich Chapter 3: Where Warren Starts His Search for the Exceptional Company Chapter 4: Durability Is Warren's Ticket to Riches Chapter 5: Financial Statement Overview: Where the Gold Is Hidden Chapter 6: Where Warren Goes to Find Financial Information THE INCOME STATEMENT Chapter 7: Where Warren Starts: The Income Statement Chapter 8: Revenue: Where the Money Comes In Chapter 9: Cost of Goods Sold: For Warren the Lower the Better Chapter 10: Gross Profit/Gross Profit Margin: Key Numbers for Warren in His Search for Long-Term Gold Chapter 11: Operating Expenses: Where Warren Keeps a Careful Eye Chapter 12: Selling, General, and Administrative Expenses Chapter 13: Research and Development: Why Warren Stays Away from It Chapter 14: Depreciation: A Cost Warren Can't Ignore Chapter 15: Interest Expense: What Warren Doesn't Want Chapter 16: Gain (or Loss) on Sale of Assets and Other Chapter 17: Income Before Tax: The Number That Warren Uses Chapter 18: Income Taxes Paid: How Warren Knows Who Is Telling the Truth Chapter 19: Net Earnings: What Warren Is Looking For Chapter 20: Per-Share Earnings: How Warren Tells the Winners from the Losers BALANCE SHEET Chapter 21: Balance Sheet in General Chapter 22: Assets Chapter 23: Current Asset Cycle: How the Money Is Made Chapter 24: Cash and Cash Equivalents: Warren's Pile of Loot Chapter 25: Inventory: What the Company Needs to Buy and What the Company Needs to Sell Chapter 26: Net Receivables: Money Owed to the Company Chapter 27: Prepaid Expenses/Other Current Assets Chapter 28: Total Current Assets and the Current Ratio Chapter 29: Property, Plant, and Equipment: For Warren Not Having Them Can Be a Good Thing Chapter 30: Goodwill Chapter 31: Intangible Assets: Measuring the Unmeasurable Chapter 32: Long-Term Investments: One of the Secrets to Warren's Success Chapter 33: Other Long-Term Assets Chapter 34: Total Assets and the Return on Total Assets Chapter 35: Current Liabilities Chapter 36: Accounts Payable, Accrued Expenses, and Other Current Liabilities Chapter 37: Short-Term Debt: How It Can Kill a Financial Institution Chapter 38: Long-Term Debt Coming Due and the Troubles It Can Cause Chapter 39: Total Current Liabilities and the Current Ratio Chapter 40: Long-Term Debt: Something That Great Companies Don't Have a Lot Of Chapter 41: Deferred Income Tax, Minority Interest, and Other Liabilities Chapter 42: Total Liabilities and the Debt to Shareholders' Equity Ratio Chapter 43: Shareholders' Equity/Book Value Chapter 44: Preferred and Common Stock: Additional Paid in Capital Chapter 45: Retained Earnings: Warren's Secret for Getting Superrich Chapter 46: Treasury Stock: Warren Likes to See This on the Balance Sheet Chapter 47: Return on Shareholders' Equity: Part One Chapter 48: Return on Shareholders' Equity: Part Two Chapter 49: The Problem with Leverage and the Tricks It Can Play on You THE CASH FLOW STATEMENT Chapter 50: The Cash Flow Statement: Where Warren Goes to Find the Cash Chapter 51: Capital Expenditures: Not Having Them Is One of the Secrets to Getting Rich Chapter 52: Stock Buybacks: Warren's Tax-Free Way to Increase Shareholder Wealth VALUING THE COMPANY WITH A DURABLE COMPETITIVE ADVANTAGE Chapter 53: Warren's Revolutionary Idea of the Equity Bond and How It Has Made Him Superrich Chapter 54: The Ever-Increasing Yield Created by the Durable Competitive Advantage Chapter 55: More Ways to Value a Company with a Durable Competitive Advantage Chapter 56: How Warren Determines the Right Time to Buy a Fantastic Business Chapter 57: How Warren Determines It Is Time to Sell Appendix Select Glossary of Terms Acknowledgments Index