Warren Buffett: How To Analyze a BALANCE SHEET

▼WARREN BUFFETT'S FINANCIAL RULES OF THUMB PDF:▼

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👨‍💼Brian Stoffel is a writer, investor, YouTuber, and financial educator. He's a teacher at heart. Brian has been investing for over a decade and has written over 4,000 articles for The Motley Fool. Brian plans his life and his investments around “antifragile” principles.

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0:00 Balance Sheet Overview
0:49 Buffett's Balance Sheet Rules
4:27 Chipotle Balance Sheet

[Davemaloney-mw]

I've been an investor in Apple, Tesla because I strongly believe in the company. I've always believed in the stock, but now I don't know if i am to re-distribute my portfolio and put some money in Nvidia. especially now that we are experiencing a market correction.

[BlackbirdDH]

I really love this kind of no BS straight to the point content. I am always confused what the different US balance sheet terms mean and this brought me a step closer to understanding. Thank you!

[Tpry]

1.Cash to debt: more cash than debt
2.Debt to equity ratio : below 0.8
Preferred stock is zero
4. Retained earnings growing consistently ( even during recessions)
5. Has treasury stock ( cumulative sharebuy backs)

[tpwong]

Thanks for the straight to the point explanation. For for someone with no idea of accounting, this short video is extremely helpful.

[Vivianlaure]

My life changed too when I started doing this and putting money in stocks. The first few years it as really great, but this year I haven't felt like my portfolio is doing well. I have lost more than $40, 000 from my portfolio the past four months, and it's now very worrisome.

[JD-imwu]

i think this is the most important to start looking at because it gives a good picture of the company debt + equity to asset ratios before buying in

[ashahmadi]

I'm confused about the part where you said Chipotle had no debt, It states they did have an accounts payable of 197.6 in Dec 23. Accounts Payable is a type of short term debt that is owed to suppliers etc.

[Andre_XX]

Everyone likes to put "Warren Buffet" in their videos. It guarantees views.

[JoseRivera-ufug]

I like this content a lot! I am learning all about finance and this helps so much, specially learning from buffet strategies! Thanks!

[sk.n.]

Really excellent video, easy to the point. I learned something.

[edenrr]

Thanks for posting.
Please put YOUR name in the title and NOT Warren Buffett... at least you are honest about it.
Also, the information is clear and succinct.
However, you used my Time for your profit.
Please stop mislabeling the clip.
Cheers, SV Good Karma as Grins.

[massemassimo-ff]

Wait how can the company (chipotle) have a debt free balance sheet but Debt/Equity is 1.2? If debt is 0 debt / anything should always be 0, right? I am guessing these are two different kinds of debt but how?

[LTVoyager]

Nice video. It would be great to see a similar analysis for other business forms such as cooperatives, nonprofits, etc. so that their members can analyze how well their cooperative is being run. Obviously, not quite the same as an investor perspective, but I suspect most of the same rules apply just different terms on the balance sheet.

[ezrad]

I’d love to invest in Chipotle stocks but I get explosive diarrhea every time I eat their food.

[brianwest]

but dont a lot of companies cancel treasury stock after buying the stock back? This would then show up as zero.

[philipvalloyas-tiongson]

Hi. Can I ask what financial website you get your data from in the video? I didn't catch the name so I couldn't Google it. Thank you very much.

[chamindasilva]

Very good series. This is along with income statement analysis and cash flow statement analysis help to figure out the value stocks with strong Moat. Thanks.

[VV-lqdi]

Debt to equity ratio = Total debt/equity, not Total liabilities/equity

[CarlZend]

Excellent piece. Informative and succinct.

[batak]

What’s the website you use for checking financial data, fincheck?