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Warren Buffett: How To Analyze a BALANCE SHEET




WARREN BUFFETT’S FINANCIAL RULES OF THUMB PDF:▽ https://longtermmindset.co/buffett ▽ABOUT US:▽ ‍ Brian …

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40 thoughts on “Warren Buffett: How To Analyze a BALANCE SHEET”

  11. I announced to my wife I was going to buy a stock. She asked me what does it make? How long has it been in business? What is the P/E ratio? I didn't know. She said don't buy it. It went up right after that. I never asked for her approval again on stocks.

  13. I started with $8k just last week and now I've hit $33,590. I was having this exact conversation with my son the other night—generational wealth isn't just about getting money. It's about teaching everyone not only how to make it, but also how to maintain it. It does no good for me to provide for my family if they dont understand how to manage and sustain it. That's why I really love this video.

  14. So you checked with ✅ the ones that actually was a “ pass” but those who was a ❌ , you just checked them as a “pass” for your own reasons, in the same time you supposedly explain the “buffet way” ……and that , ladies and gentlemen , is what we called a financial influencer😂🤡

  21. Those five rules don't really say much. As far as debt/equity, debt can be used to enhance eps and dividends; so, debt isn't always 'bad'. Cash on hand greater than debt…. Cash doesn't earn a return, so no need to keep too much on hand. Retained Earnings growth… A company can pay dividends and reduce growth of r.earnings; dividends can be just as good as retained earnings. When looking at taking control of a company, I prefer to look at cash flow from operations, profits, and debt/equity. The first two are indicative of the 'business' and are things you can't control as easy. The last one tells you how much sway you will have over the cash flow once you have control (will it be easy or hard).

  23. Why isn't V. With you??? She's likely wanted your execution too. FATHERS MAKING LOTS OF REALLY ROTTEN TO THRRE STINKING GUTS PEOPLE…CONGRESS. HYHRID CHRMICAL STIMULI ARE FLESH AND CLAY. NO SPIRITS 8N THESE QUEERDOPES LIKE WARRUNT

  34. did i hear this fella correctly when he said, hes been a stock analist for 20yrs, this whole video is complete contradiction from start to finish, everything he said during the first section, on coffee shops balance sheet, did not coincide with the second sections balance sheet, throughout the real life stock, as he explained it in the first instance, not a very good explanation.

  35. Great breakdown of the balance sheet! I’ve been trying to apply Buffett’s rules to some older PDF annual reports, and man, manually typing those tables into Excel was a nightmare. I started using PDNob OCR recently to just 'snip' the financial tables directly into my spreadsheet, and it’s saving me hours of grunt work. Thanks for the Chipotle example—really helps put things in perspective

  36. Hey everyone, I’m just a 17-year-old trying to build a career in finance. I’ve recently developed a strong interest in understanding how finance actually works in the real world and I want to learn it deeply not just for exams but as a skill. Can anyone suggest how I should start and what books or resources I should follow to become really strong in finance? I’d really appreciate your guidance.

  40. you can see why he would have some of these criteria – they are specific to him as a potential equity investor. Take rule 2, Debt/Equity <0.8 two ways of funding growth, debt and equity. Debt would mean the company is confident on its growth and cash generating ability but wants to keep all that for its existing ownership, whereas higher equity means either they havent been able to get the finance or are more open to equity investors (like him). It would also mean with a ratio like that the option to raise more capital for investment is still open to the company, which gives the potential boost for leveraging greater growth which results in higher earnings and valuation = more profit for him, as he is going in at a level where he can influence strategy. Does that mean the same thing to a regular investor? Partially – the option for finance is there still, but you will have no say in whether it is used.

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