Table of Contents

Chapter 1: Two Great Revelations That Made Warren the Richest Person in the World

Chapter 2: The Kind of Business That Will Make Warren Superrich

Chapter 3: Where Warren Starts His Search for the Exceptional Company

Chapter 4: Durability Is Warren's Ticket to Riches

Chapter 5: Financial Statement Overview: Where the Gold Is Hidden

Chapter 6: Where Warren Goes to Find Financial Information

THE INCOME STATEMENT

Chapter 7: Where Warren Starts: The Income Statement

Chapter 8: Revenue: Where the Money Comes In

Chapter 9: Cost of Goods Sold: For Warren the Lower the Better

Chapter 10: Gross Profit/Gross Profit Margin: Key Numbers for Warren in His Search for Long-Term Gold

Chapter 11: Operating Expenses: Where Warren Keeps a Careful Eye

Chapter 12: Selling, General, and Administrative Expenses

Chapter 13: Research and Development: Why Warren Stays Away from It

Chapter 14: Depreciation: A Cost Warren Can't Ignore

Chapter 15: Interest Expense: What Warren Doesn't Want

Chapter 16: Gain (or Loss) on Sale of Assets and Other

Chapter 17: Income Before Tax: The Number That Warren Uses

Chapter 18: Income Taxes Paid: How Warren Knows Who Is Telling the Truth

Chapter 19: Net Earnings: What Warren Is Looking For

Chapter 20: Per-Share Earnings: How Warren Tells the Winners from the Losers

BALANCE SHEET

Chapter 21: Balance Sheet in General

Chapter 22: Assets

Chapter 23: Current Asset Cycle: How the Money Is Made

Chapter 24: Cash and Cash Equivalents: Warren's Pile of Loot

Chapter 25: Inventory: What the Company Needs to Buy and What the Company Needs to Sell

Chapter 26: Net Receivables: Money Owed to the Company

Chapter 27: Prepaid Expenses/Other Current Assets

Chapter 28: Total Current Assets and the Current Ratio

Chapter 29: Property, Plant, and Equipment: For Warren Not Having Them Can Be a Good Thing

Chapter 30: Goodwill

Chapter 31: Intangible Assets: Measuring the Unmeasurable

Chapter 32: Long-Term Investments: One of the Secrets to Warren's Success

Chapter 33: Other Long-Term Assets

Chapter 34: Total Assets and the Return on Total Assets

Chapter 35: Current Liabilities

Chapter 36: Accounts Payable, Accrued Expenses, and Other Current Liabilities

Chapter 37: Short-Term Debt: How It Can Kill a Financial Institution

Chapter 38: Long-Term Debt Coming Due and the Troubles It Can Cause

Chapter 39: Total Current Liabilities and the Current Ratio

Chapter 40: Long-Term Debt: Something That Great Companies Don't Have a Lot Of

Chapter 41: Deferred Income Tax, Minority Interest, and Other Liabilities

Chapter 42: Total Liabilities and the Debt to Shareholders' Equity Ratio

Chapter 43: Shareholders' Equity/Book Value

Chapter 44: Preferred and Common Stock: Additional Paid in Capital

Chapter 45: Retained Earnings: Warren's Secret for Getting Superrich

Chapter 46: Treasury Stock: Warren Likes to See This on the Balance Sheet

Chapter 47: Return on Shareholders' Equity: Part One

Chapter 48: Return on Shareholders' Equity: Part Two

Chapter 49: The Problem with Leverage and the Tricks It Can Play on You

THE CASH FLOW STATEMENT

Chapter 50: The Cash Flow Statement: Where Warren Goes to Find the Cash

Chapter 51: Capital Expenditures: Not Having Them Is One of the Secrets to Getting Rich

Chapter 52: Stock Buybacks: Warren's Tax-Free Way to Increase Shareholder Wealth

VALUING THE COMPANY WITH A DURABLE COMPETITIVE ADVANTAGE

Chapter 53: Warren's Revolutionary Idea of the Equity Bond and How It Has Made Him Superrich

Chapter 54: The Ever-Increasing Yield Created by the Durable Competitive Advantage

Chapter 55: More Ways to Value a Company with a Durable Competitive Advantage

Chapter 56: How Warren Determines the Right Time to Buy a Fantastic Business

Chapter 57: How Warren Determines It Is Time to Sell

Appendix

Select Glossary of Terms

Acknowledgments

Index