Table of Contents

К оглавлению1 2 3 4 5 6 7 8   11 

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

 

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