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.

Products You May Like

Articles You May Like

Birchcliff Energy: Incredible Upside Still To Come
Ternium Is The Go-To Stock During This Inflation
Grayscale tells SEC that turning biggest bitcoin fund into ETF will unlock $8 billion for investors
Time to Bail Out of Nio Stock
Stocks making the biggest moves premarket: Ford, General Motors, Tapestry and more

Leave a Reply

Your email address will not be published.