Buffett: Financial companies are more difficult to analyze than other companies. They can report whatever earnings they want – it’s an easy game to play. For banks, earnings depend on loans and the reserves set aside. It’s easy to change and manipulate the reserves. With a company like WD-40 or a brick company, the financials […]
Tag: financial statements
Buffett: Invest in Businesses You Understand
Question: If you can’t talk with management, and can’t read the annual report, and didn’t know the price, but could only look at the financial statements, what metric would you look at? Buffett: Investing is laying out money now to get more money later on. Let’s leave the market price out. If you were buying […]