The Buffettology Workbook
The Buffettology Workbook creates an in-depth, step-by-step guide to the concepts and equations Warren Buffett uses to create fantastic wealth. Here, you will learn the difference between a great company and a great undervalued company. You will also discover how the short-sightedness of Wall Street pundits can work to your advantage. The Buffettology Workbook tells you where to look for investments with long-term, consistent, and extraordinary growth potential. Ultimately, this book will share the same financial calculations Buffett uses, so you can apply them to stocks you'd like to buy.
In The Buffettology Workbook, internationally acclaimed writer and lecturer Mary Buffett has again joined forces with David Clark, the world's leading authority on Warren Buffett's investment methods.
In Buffettology, they unveiled the analysis techniques that made Warren Buffet the billionaire and investment icon he is today.
The authors create an in-depth, step-by-step guide to the concepts and equations Warren Buffett uses to create fantastic wealth.
This workbook explains Buffet's system of business perspective investing, focusing on specific mathematical ratios and calculations.
Table of Contents
Part I: Understanding Value Investing
Short-Sightedness and the Bad News Phenomenon: The Gifts that Keep on Giving
Identifying the Economic Engine Warren Wants to Own
Identifying the Sick/Commodity Type Business
The Healthy Business: The Consumer Monopoly
Determining if the Business Has a Consumer Monopoly
Where to Look for a Consumer Monopoly
The Bad News that Creates a Buying Station
Part II: Warren Buffett's Intrinsic Value Equations
Finding the Company and the Numbers
Financial Calculation #1: Predictability of Earnings at a Glance
Financial Calculation #2: A Test to Determine Your Initial Rate of Return
Financial Calculation #3: Test for Determining the Per Share Growth Rate
Financial Calculation #5: Understanding Warren's Preference for Companies That Earn High Rates of Return on Shareholders' Equity
Financial Calculation #6: Determining the Projected Annual Compounding Rate of Return: Part 1
Determining the Projected Annual Compounding Rate of Return: Part 2
Financial Calculation #7: The Equity/Bond with an Expanding Coupon
Financial Calculation #8: Using the Per Share Earnings Annual Growth Rate to Project an Investment's Compounding Annual Rate of Return
Financial Calculation #9: Why Warren Loves Stock Repurchase Programs, or, How Can a Company Increase Its Shareholder's Fortunes by Buying Back the Company's Stock
Financial Calculation #10: How to Determine if Per Share Earnings are Increasing Because of Share Repurchases
Financial Calculation #11: How to Measure Management's Ability to Utilize Retained Earnings
Financial Calculation #12: The Internet and Warren's Short-Term Arbitrage Commitments
Doing it Yourself: Buffettology Worksheet
Bringing it All Together: The Case Studies