ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How Warren Buffet Reads Financial Statements, A Review

Updated on July 6, 2017

Warren Buffet and Financial Statements

I just read Warren Buffet and the Interpretation of Financial Statements, The Search for the Company with a Durable Competitive Advantage. Whew….what a mouthful. The authors of this book are Mary Buffet and David Clark who have written 9 other books about Warren Buffet’s stock buying, and portfolio management strategy.

David was trained by Buffet and Mary was Buffet’s daughter in law. Both authors are recognized as top financial experts around the world. Their books on Buffet have sold millions of copies around the world and have been translated into multiple languages.

These two know what they are talking about, but that is enough on the authors. I want to tell you about the book.

A Short and Concise Read

It is an information packed read but it is short. I read it over the course of a couple of hours while taking notes on the strategies being presented. After finishing the book I was surprised at how little time it took to read, but rather than feeling like I was missing information or feeling like it was a sampler for their other books I was excited and ready to go looking for the next stock to add to my portfolio for the long term.

The shortness of this book is described in the title, Interpretation of Financial Statements, and that is really what this book hones in on. It doesn’t waste your time by over explaining every concept it introduces, assuming that readers of this book have some financial knowledge, but it does explain what the items in the financial statement are and what to look for in the numbers.

Overall the book is just the right length for what I was reading it for, a guide to analyzing financial statements. It’s is concise and consistent in its presentation of the information.

Well Written Useful Information

All the information provided can be useful to the reader; I didn’t read a single chapter that didn’t show me something I needed to know, or something I needed to ignore. There are no long rambling explanations about the techniques used, so you get the clearest possible explanation in each chapter.

In the way of the book being written, it truly is a polished piece. Even the chapters that tell you not to worry with this item on a financial statement tell you what it is and that it isn’t important to Buffet. This made me feel like the authors wanted me to have the knowledge of what I was dismissing rather than just glossing over it.

What Could Have Been Better?

Not much, but some of the chapters don’t give you exact ratios to look for, and it confused me as I was looking for an exact ratio like I was given in the previous chapter. These told you to look for higher or lower amounts but nothing concrete. In a book that is very clear this was the only muddling.

So Overall, How's The Book?

This is a great book to read for understanding Financial Statements, and is a handy desk reference to have if you aren’t quite sure if what you’re looking for. A very clear and concise read packed full of information that any serious investor will use every time they analyze a stock’s financial statement.

It left me excited and ready to look for the next addition to may portfolio. It also made me want to read the other books these two experts have written. I believe that the information in this book will help any investor find companies with a durable competitive advantage to add to their portfolio.

All top professional must master the fundamentals of their craft, investors need to master theirs as well and this book contains the fundamentals of the most important aspect of any business, its financial statement.

Grab Your Copy Today


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)