Financial Statement Analysis

Financial Statement Analysis

In this video, Warren Buffett discusses investment strategies. The main point Buffett tries to get across in some of these clips, and many others, is that there is no “secret sauce” or single formula that is the key to successful investing. Warren describes how he values a company by reading and analyzing its financial statements, irrespective of how others value the company.

Warren Buffett gives his thoughts on Bitcoin and cryptocurrencies in this video. The main two issues Buffett has with Bitcoin is that it is not a productive asset and has no financial statements for which to value the asset. Warren argues Bitcoin “investing” is actually gambling because you cannot value the asset.

Trend Analysis

This CBS video provides a good example of investors applying horizontal analysis to Apple’s revenue growth. As the video explains, investors began to panic as Apple posted their first ever decline in revenue. Although this trend has since reverted, it still provides a good example of horizontal analysis and trend analysis being applied in the marketplace.