Warren Buffet & The Interpretation of Financial Statements, by Mary Buffett, David Clark

A dry, short book that explains which elements of financial statements does Warren Buffet pay attention to when he estimates the value of a company. In a typical company's annual statements, there are many different figures. It is a mistake to focus on each of those figures because they can obscure the real truth of what is going on. This book provides insight into which numbers are more meaningful than others.

The book does more or less what it claims to do. The authors use a point-by-point analysis of each financial figure, but I expected a more comprehensive analysis. There is no summary that allows the reader to understand the relative importance of the various criteria, or the special circumstances under which they change. You can find bits and pieces scattered throughout the book, but it is not consolidated properly.

Tags: finance accounting