Warren Buffett and the Interpretation of Financial Statements Determining if a Company Has a Durable Competitive Advantage

 1 step. which you will identify the company you have selected. Additional details about your reply will be forthcoming. As soon as you have selected the company, respond to the questions in the forum (soon to be posted). You will identify the company you have chosen and state your preliminary opinion (likely to be just a hunch!) about the company’s durable competitive advantage. Once a student selects a company, and discloses that choice in the Forum, that company is taken and not available for another student to use for analysis. Once you have replied to the post, you can’t change your selection; therefore, don’t wait, but don’t rush your choice either. All students should view all replies to make sure their company is not taken by another! To receive full points, your reply must be uploaded by 10/9. Don’t wait until the deadline to reply – once you have selected a company, stake your claim! Before you take next steps, I will confirm that the company you have selected is suitable and available. around 200 words.

2 step Identify 5 of the 10 chapters you will use for your analysis. Upload company financial statements in Blackboard. In this step, you will be re-reading the book, focusing on the chapters that you think will be the most useful for your analysis. In a Blackboard assignment, you will upload a Word document (a template will be provided) in which you will answer a few questions about your work, including identifying 5 of the 10 chapters you will include in your analysis. (To complete the project, you will need to use a total of 10 chapters, with this stipulation: a minimum of 3 income statement items, 3 balance sheet items, and 1 cash flow statement item. You’ll have to use more than the minimum to reach 10, but this stipulation is designed to make sure that you don’t select all chapters from one financial statement.) This part of the assignment will be due on 10/22. Also, by this date, you will be asked to upload the financial statements for the company you have selected. Details about this step will be discussed going forward. 1 page around 400 words

final 3 step Perform analysis using tools in 10 chapters to formulate your opinion: does the company have a durable competitive advantage? You will have approximately 6 weeks to perform your analysis, in which you will have used the tools identified in a total of 10 chapters, to make the case that the company does - or doesn’t- have a durable competitive advantage. You will upload a Word document (a template will be provided) in which you will provide a brief rational for selecting the chapter as well as the results of your calculations. The purpose of the analysis is to determine if the company has a durable competitive advantage, which you may not know until you have completed your analysis. If it turns out that you picked a company that doesn’t have a durable competitive advantage, that is fine. You are not being graded on your ability to select a company that does, instead you are being graded on completing each step, on time, and using the tools to perform the analysis.

Here is a quick summary of the project timeline and outcomes:

please To complete the project, you will need to use a total of 10 chapters, with this stipulation: a minimum of 3 income statement items, 3 balance sheet items, and 1 cash flow statement item. You’ll have to use more than the minimum to reach 10, but this stipulation is designed to make sure that you don’t select all chapters from one financial statement.)

Also, by this date, upload the financial statements for the company you have selected.

https://themakingofamillionaire.com/warren-buffett-and-the-interpretation-of-financial-statements-a702e959b53a

Financial information can be found on the company's web page in Investor Relations where Securities and Exchange Commission (SEC) and other company reports are often kept. The SEC has financial filings electronically available beginning in 1993/1994 free on their website. See EDGAR: Company Filings.

https://www.youtube.com/watch?v=Xocpli8YuoM

https://abcnews.go.com/Business/ways-easily-access-companys-financial-statements/story?id=16324590

I hope this is helpful!