Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage
by Mary Buffet and David Clark. An excellent book to start the education on how to read the financial statements; highly recommended.
From 1965 to 2007, Berkshire's expanding pool of retained earnings helped grow its pretax earnings from $4 a share in 1965 to $13,023 a share in 2007, which equates to an average annual growth rate approximately 21%.
The theory is simple: the more earnings that a company retains, the faster it grows its retained earnings pool, which, in turn will increase the growth rate for future earnings. The catch is, of course, that it has to keep buying companies that have durable competitive advantage.
by Mary Buffet and David Clark. An excellent book to start the education on how to read the financial statements; highly recommended.From 1965 to 2007, Berkshire's expanding pool of retained earnings helped grow its pretax earnings from $4 a share in 1965 to $13,023 a share in 2007, which equates to an average annual growth rate approximately 21%.
The theory is simple: the more earnings that a company retains, the faster it grows its retained earnings pool, which, in turn will increase the growth rate for future earnings. The catch is, of course, that it has to keep buying companies that have durable competitive advantage.
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