3. What is a Balance Sheet and Margin of Safety

Videos
Download Preston’s 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist

Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location:

In lesson three, we explored the importance of a Balance Sheet. We learned that current assets and liabilities are income streams and obligations, respectively, that a company will receive or pay during the next 12 months. We also learned that the equity of a business was equal to the total assets minus the total liabilities. After determining a company’s equity, we can use that important number to determine the margin of safety that’s associated with buying a business.

Articles You May Like

124 TIP: One Up on Wall Street by Peter Lynch
Stocks making the biggest moves after hours: Whirlpool, NXP Semiconductors, UnitedHealth and more
It’s the Perfect Time to Buy Amazon Stock
7 Sorry Semiconductor Stocks to Sell in February Before It’s Too Late
When NIO Stock Hits $15 – Then Buy!