Mary Buffett is the coauthor of Scribner’s bestselling Buffettology series, and a contributor to HuffPost and the online magazine Thrive Global. Mary’s online [...]—provides monthly investment insights and helps students learn to build successful stock portfolios.

For over twenty years, David Clark has been considered the world’s leading authority on the subject of Warren Buffett’s investment methods. His international bestselling investment books, The Tao of Charlie Munger and those coauthored with Mary Buffett—Buffettology, The Buffettology Workbook, The New Buffettology, The Tao of Warren Buffett, Warren Buffett and the Interpretation of Financial Statements, The Management Secrets of Warren Buffett, Warren Buffett and The Art of Stock Arbitrage, and The Warren Buffett Stock Portfolio—have been translated into more than twenty languages and are considered “investment classics” the world over.

Contents

INTRODUCTION

PART I:

UNDERSTANDING VALUE INVESTING

1: Short-Sightedness and the Bad News Phenomenon:

The Gifts that Keep On Giving

2: Identifying the Economic Engine Warren Wants to Own

3: Identifying the Sick/Commodity Type Business

4: The Healthy Business: The Consumer Monopoly

(Where Warren Finds All the Money)

5: Determining if the Business Has a Consumer Monopoly

6: Where to Look for a Consumer Monopoly

7: The Bad News that Creates a Buying Situation

PART II:

WARREN BUFFETT'S INTRINSIC VALUE EQUATIONS

8: Finding the Company and the Numbers

9: Financial Calculation #1: Predictability of Earnings

at a Glance

10: Financial Calculation #2: A Test to Determine Your

Initial Rate of Return

11: Financial Calculation #3: Test for Determining

the Per Share Growth Rate

12: Financial Calculation #4: Relative Value to Treasury Bonds

13: Financial Calculation #5: Understanding Warren's

Preference for Companies That Earn High Rates

of Return on Shareholders' Equity

14: Financial Calculation #6: Determining the Projected Annual

Compounding Rate of Return: Part I

15: Determining the Projected Annual Compounding

Rate of Return: Part II

16: Financial Calculation #7: The Equity/Bond with

an Expanding Coupon

17: Financial Calculation #8: Using the Per Share Earnings

Annual Growth Rate to Project an Investment's

Compounding Annual Rate of Return

18: Financial Calculation #9: Why Warren Loves Stock

Repurchase Programs, or, How Can a Company Increase

Its Shareholders' Fortunes By Buying Back the Company's Stock

19: Financial Calculation #10: How to Determine if Per Share

Earnings Are Increasing Because of Share Repurchases

20: Financial Calculation #11: How to Measure Management's

Ability to Utilize Retained Earnings

21: Financial Calculation #12: The Internet and Warren's

Short-Term Arbitrage Commitments

22: Doing It Yourself: Buffettology Worksheet

23: Bringing It All Together: The Case Studies