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Excerpts

Contents

INTRODUCTION

PART I:
UNDERSTANDING VALUE INVESTING

1: Short-Sightedness and the Bad News Phenomenon:
The Gifts that Keep On Giving

2: Identifying the Economic Engine Warren Wants to Own

3: Identifying the Sick/Commodity Type Business

4: The Healthy Business: The Consumer Monopoly
(Where Warren Finds All the Money)

5: Determining if the Business Has a Consumer Monopoly

6: Where to Look for a Consumer Monopoly

7: The Bad News that Creates a Buying Situation

PART II:
WARREN BUFFETT'S INTRINSIC VALUE EQUATIONS

8: Finding the Company and the Numbers

9: Financial Calculation #1: Predictability of Earnings
at a Glance

10: Financial Calculation #2: A Test to Determine Your
Initial Rate of Return

11: Financial Calculation #3: Test for Determining
the Per Share Growth Rate

12: Financial Calculation #4: Relative Value to Treasury Bonds

13: Financial Calculation #5: Understanding Warren's
Preference for Companies That Earn High Rates
of Return on Shareholders' Equity

14: Financial Calculation #6: Determining the Projected Annual
Compounding Rate of Return: Part I

15: Determining the Projected Annual Compounding
Rate of Return: Part II

16: Financial Calculation #7: The Equity/Bond with
an Expanding Coupon

17: Financial Calculation #8: Using the Per Share Earnings
Annual Growth Rate to Project an Investment's
Compounding Annual Rate of Return

18: Financial Calculation #9: Why Warren Loves Stock
Repurchase Programs, or, How Can a Company Increase
Its Shareholders' Fortunes By Buying Back the Company's Stock

19: Financial Calculation #10: How to Determine if Per Share
Earnings Are Increasing Because of Share Repurchases

20: Financial Calculation #11: How to Measure Management's
Ability to Utilize Retained Earnings

21: Financial Calculation #12: The Internet and Warren's
Short-Term Arbitrage Commitments

22: Doing It Yourself: Buffettology Worksheet

23: Bringing It All Together: The Case Studies