Tuesday, 3 April 2018
Two great revelations that made Warren the richest person in the world
"You have to understand accounting and you have to understand the nuances of accounting. It's the language of business and it's an imperfect language, but unless you are willing to put in the effort to learn accounting how to read and interpret financial statements---you really shouldn't select stocks yourself. "
TWO GREAT REVELATIONS THAT MADE WARREN THE RICHEST PERSON IN THE WORLD
In the mid-sixties Warren began to reexamine Benjamin Graham's investment strategies. In doing so he had two stunning revelations about what kinds of companies would make the best investments and the most money over the long run. As a direct result of these revelations he altered the Graham-based value investment strategy he had used up until that time and in the process created the greatest wealth-investment strategy the world has ever seen.
It is the purpose of this book to explore Warren's two revelations---
1. How do you identify an exceptional company with a durable competitive advantage?
2. How do you value a company with a durable competitive advantage?
---to explain how his unique strategy works, and how he uses financial statements to put his strategy into practice. A practice that has made him the richest man in the world.