Table of Contents
К оглавлению1 2 3 4 5 6 7 8 11Executive Summary -------------------------------------------------------------------------------- 3
A History of Warren Buffett ---------------------------------------------------------------------- 4
Investing From a Business Perspective --------------------------------------------------------- 6
Compounding Rate of Return ---------------------------------------------------------------------- 8
Types of Businesses to Invest In ----------------------------------------------------------------- 9
The 8 Key Questions in Determining a Consumer Monopoly ------------------------------- 11
Actual Examples of Consumer Monopoly Businesses ---------------------------------------- 13
When to Buy ---------------------------------------------------------------------------------------- 14
When to Sell ---------------------------------------------------------------------------------------- 16
Quantitative Analysis ------------------------------------------------------------------------------ 17
Three Tests to Determine the Rate of Return --------------------------------------------------- 17
Determining the Value of a Company Relative to Government Bonds --------------------- 21
Companies With High Rates of Return on Equity --------------------------------------------- 21
Determining the Projected Annual Compounding Rate of Return --------------------------- 22
The Equity/Bond with an Expanding Coupon -------------------------------------------------- 23
Using the Per Share Earnings Annual Growth Rate to Project a Stock’s Future Value --- 25
How a Company Can Help Shareholders by Buying Back the Company’s Stock--------- 26
How To Determine If Per Share Earnings Are Increasing From Share Repurchases ----- 27
Short Term Arbitrage Commitments --------------------------------------------------------------- 28
Conclusion ------------------------------------------------------------------------------------------- 29
Executive Summary -------------------------------------------------------------------------------- 3
A History of Warren Buffett ---------------------------------------------------------------------- 4
Investing From a Business Perspective --------------------------------------------------------- 6
Compounding Rate of Return ---------------------------------------------------------------------- 8
Types of Businesses to Invest In ----------------------------------------------------------------- 9
The 8 Key Questions in Determining a Consumer Monopoly ------------------------------- 11
Actual Examples of Consumer Monopoly Businesses ---------------------------------------- 13
When to Buy ---------------------------------------------------------------------------------------- 14
When to Sell ---------------------------------------------------------------------------------------- 16
Quantitative Analysis ------------------------------------------------------------------------------ 17
Three Tests to Determine the Rate of Return --------------------------------------------------- 17
Determining the Value of a Company Relative to Government Bonds --------------------- 21
Companies With High Rates of Return on Equity --------------------------------------------- 21
Determining the Projected Annual Compounding Rate of Return --------------------------- 22
The Equity/Bond with an Expanding Coupon -------------------------------------------------- 23
Using the Per Share Earnings Annual Growth Rate to Project a Stock’s Future Value --- 25
How a Company Can Help Shareholders by Buying Back the Company’s Stock--------- 26
How To Determine If Per Share Earnings Are Increasing From Share Repurchases ----- 27
Short Term Arbitrage Commitments --------------------------------------------------------------- 28
Conclusion ------------------------------------------------------------------------------------------- 29