Construct a portfolio that is sure to outperform market averages
Warren Buffett had it right all along. Now it's your turn to learn how to construct a portfolio that is sure to outperform the market averages, as well as almost every professional money manager in the world. Warren Buffett's method of predictability can determine a future target price, which in turn determines his all-important purchase price. However, Buffett doesn't draw conclusions of his predictability method relative to the future total returns of portfolios. That's where Buffett and Beyond comes in, taking Buffett's method one giant step beyond, proving that if you select a portfolio of stocks using the predictability method in this book, you will outperform 96% of professional money managers over the long term.
In addition to the information in the book, readers will have access to a password-protected website that includes tutorial videos, PowerPoint slides, free trial access to a video newsletter, and a trial subscription to the author's computer program, which follows the research presented in the book.
Explains Clean Surplus Accounting (CSA) to determine Return on Owners' Equity (ROE)
Uses CSA to determine ROE in a unique way to verify Buffett's all-important purchase price
Draws conclusions between Clean Surplus Return on Equity and future total returns
Shows that every portfolio selected from the S&P 500 index with above-average Clean Surplus ROEs outperformed the S&P average during the test periods from 1987 to the present
If you're an investor, this book will impact your financial life forever.
Table of contents
- Cover Page
- Title Page
- Preface: From Then Until Now
- Introduction: A Sea Story
- Chapter 1: The Purpose of This Book—Your Journey
- Chapter 2: About Warren Buffett
Chapter 3: Determining the Earning Capacity of a Company (Now Really, Can It Be This Easy?)
- The Beach Factor
- Clean Surplus
- Determining an Efficient Company
- Take Your Bank Account
- Earning Capacity
- How to Determine the Operating Efficiency of a Company
- Sooo Important
- You See … ROE Tells Us Everything
- Let's Ask Warren
- Summary—the Key to the Investing Business
- Why Hasn't the Entire World Figured This Out Yet?
- You Will Learn
- Chapter 4: My Theory of Why Most Money Managers of the World Cannot Outperform the Market Averages
- Chapter 5: A Very Simple Income Statement and an Even Simpler Balance Sheet
- Chapter 6: The Return on Equity Ratio
- Chapter 7: The Return Portion of the Return on Equity Ratio
- Chapter 8: The Equity Portion of the Return on Equity
- Chapter 9: How to Determine an Equitable Equity Number
- Chapter 10: The Predictability of Finance Valuation Models
- Chapter 11: Clean Surplus ROE—the Only Comparable Efficiency Ratio
- Chapter 12: What Buffett Looks for in a Company, or How Clean Surplus Accounting Recognizes the Quality of a Company
- Chapter 13: General Electric Then and Now
- Chapter 14: General Motors Then and Now
Chapter 15: The Beginning: The Initial Research
- Why Work with the Dow 30?
- Constructing the Portfolio: My First Research into Clean Surplus
- 1987: The Year of the Anomaly
- Buffett the Anomaly
- More Parameters: The Simple Rules
- The Test Period Parameters
- The Results
- Compounded Returns
- Is There a Correlation Between the Roes and the Returns?
- Getting Published in an Academic Journal
- Chapter 16: Continuing Research: The Doctoral Research on the S&P 500
- Chapter 17: Rules for Structuring a Great Growth Portfolio
- Chapter 18: Great, Great Job, But You're Fired
- Chapter 19: Stocks on Our Radio Show
- Chapter 20: Stories of Audience Hecklers
- Chapter 21: A Great Dividend Income and Growth Strategy—Part I: The Economic Spectrum of Dividend Stocks
- Chapter 22: A Great Dividend Income and Growth Strategy—Part II: Selecting Stocks That Are Growing Their Dividends for Our Portfolio
- Chapter 23: A Great Dividend Income and Growth Strategy—Part III: Selecting Stocks That Are Growing in Price for Our Portfolio
- Chapter 24: Enhanced Income
Chapter 25: Portfolio Insurance
- What Does Buffett Do?
- So What Can We Do?
- Ok, So What Can We Do to Take the Guessing out of Investing?
- The Amazing Thing About Portfolio Insurance
- Market Crash Mentality
- Back to the Crash Mentality
- Which Scenario Do You Prefer?
- How Do We Insure Our Portfolios?
- Cash, Cash, Cash
- But How Much Cash?
- What Do We Mean by Market Conditions?
- Chapter 26: What Have You Learned? A Summary
- Chapter 27: We Won't Leave You Out There Alone
- About the Author
- Title: Buffett and Beyond: Uncovering the Secret Ratio for Superior Stock Selection, + Website, 2nd Edition
- Release date: February 2015
- Publisher(s): Wiley
- ISBN: 9781118955772
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