I'm not here to tell you all about the investing life of Warren Buffett. What I will discuss with you is how he uses just a few numbers from the income statement, at least to an extent that we can understand and utilize, in a very simplified manner. Thus, this book will not go into detail about Mr. Buffett. There are so many wonderful books already written about him, and every one of them I read in the past is certainly worth reading more than once. He has been called the “world's greatest investor” and the “greatest investor of this century.” Whatever we call him, I know this for certain: We all want to be like Warren.
A friend of mine who is an admirer of Buffett (like really, who isn't?) once told me that just before he (my friend) died, he hoped Buffett's life (and not his own) would flash in front of him.
We were sitting at a beachside tiki hut in Florida, drinking one or four beers, when he mentioned flashing lives, so I wasn't sure if he was talking about Warren Buffett or Jimmy Buffett, but hey, we were happy talking about stocks (like Warren) and watching the ocean (like Jimmy). After all, isn't that the way it's supposed to be?
Now that we've discussed Warren Buffett's life in such great detail (I'm joking of course), let's talk about numbers. After all, I certainly believe that the numbers tell us almost everything we need to know about a company. Let me clarify this statement. If used properly, the numbers will tell us almost everything ...