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

Forget the Split and Buy Alphabet Stock Now
🛢Ditch Dangerous Oil Stocks Before the Recession Hits
Tread Carefully With Nio Stock Following a Scathing Short Report
6 Dividend Stocks That Can Afford to Pay Their High Yields
Swipe Triple-Digit Gains as Tech Stocks Soar 50%-Plus in 2023