With an insider's view of the mind of the master, Mary Buffett and David Clark have written a simple, easy-to-follow guide for reading financial statements from Warren Buffett's successful perspective.Buffett and Clark clearly outline Warren Buffett's strategies in a way that will appeal to newcomers and seasoned Buffettologists alike. Inspired by the seminal work of Buffett's mentor, Benjamin Graham ( The Interpretation of Financial Statements , 1937), this book presents Buffett's interpretation of financial statements with anecdotes and quotes from the master investor himself.Potential investors will -Buffett's time-tested dos and don'ts for interpreting an income statement and balance sheet-Why high research and development costs can kill a great business-How much debt Buffett thinks a company can carry before it becomes too dangerous to touch-The financial ratios and calculations that Buffett uses to identify the company with a durable competitive advantage - which he believes makes for the winning long-term investment-How Buffett uses financial statements to value a company-What kinds of companies Warren stays away from no matter how cheap their selling priceOnce readers complete and master Buffett's simple financial calculations and methods for interpreting a company's financial statement, they'll be well on their way to identifying which companies are going to be tomorrow's winners - and which will be the losers they should avoid at all costs.Destined to become a classic in the world of investment books, Warren Buffett and the Interpretation of Financial Statements is the perfect companion volume to The New Buffettology and The Tao of Warren Buffett .