Dah Hui Lau (David)

Monday, June 14, 2010

Mariusz Skonieczny: The Basics of Understanding Financial Statements

A friend of mine, Mariusz Skonieczny, recently wrote a book, The Basics of Understanding Financial Statements, which I think is a good introductory book to help beginners in understanding financial statements.

As Skonieczny put it, “Many people choose to invest their entire life savings into stocks, yet they do not take the time to learn basic accounting, which is the language of business.”

“Managers of various companies communicate with shareholders about the successes and failures of their business endeavors through financial statements which include the balance sheet, the income statement, and the cash flow statement. The preparation of financial statements is guided by various accounting guidelines. When buyers and sellers of stocks are truly involved in buying and selling businesses, it is critical that they know how to read and understand financial statements so that they know what it is that they are buying or selling.”

If you are interested in the book, please visit: Classic Value Investors website and become a subscriber of his blog. You will get the book for free!

Happy learning,

David

Wednesday, June 02, 2010

Forbes on Warren Buffett: A Great Compilation

Please download here.

Thursday, May 27, 2010

Buffett's 1982 Letter Warning Dingell About Derivatives

Forbes has obtained a copy of Buffett's March 5, 1982, letter to Rep. John Dingell, D-Mich., laying out the risks of derivatives to the nation that were, of course, largely ignored. In the letter Buffett modestly refers to his background, referencing his previous 25 years spent as a financial analyst, and 30 years "in various aspects of the investment business." He adds, "I currently have the sole responsibility for an equity portfolio that totals over $600 million." It sounds prosaic now: $600 million!

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