Interpretation of Financial Statements the Warren Buffet Way
For the longest time, I have been reading business and investment books, I have always been fascinated by how successful people pick stocks. However, it all boils down to whether you are using fundamental analysis or technical analysis.
I lean towards fundamental analysis since this is less prone to market manipulation (I think) and also, it is more sustaining. One of the measures of a company lies in its financial statements (which you will see in their annual report) which will contain all the information which makes up the ratios, e.g. PE ratios, NTA, price-to-book ratios etc.
But I have always been horrible in understanding financial statements. I could never make head or tail of it and it is quite frustrating sometimes. Imagine my delight when I got hold of this book – Warren Buffet and the Interpretation of Financial Statements.
I just started reading this book and would like to share it with you as I attempt to understand this mysterious document call chapter by chapter each day.
Come check out this site periodically as I share my journey in learning about how to read financial statements, like Warren Buffet!
