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👨💼Brian Feroldi is an author (https://amzn.to/3JVr9Q0), investor, YouTuber, and financial educator. He’s been investing in the stock market since 2004. Brian likes to buy and hold the highest quality companies he can find.
👨💼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
source
@BrianFeroldiYT
Thanks for watching! Download a free copy of Buffett’s rules of thumb here: http://longtermmindset.co/buffett
@SteelFabricator-os7sx
The first rule as presented here is dead wrong. There are no businesses that have more cash and cash equivalent than short term and long term debt. Look at coca cola which is one that Buffet has held for a long time.
@Charles-l6h4b
I downloaded the Buffett Rules. All it is is a list of questions. No formulas at all. Useless.
@redswingline262
#6 – no dividends
@MalvinderKaur-e7x
today you have programs apps doing it much better for heavens sake grow up to tech age idiots…financial statements can be forged fake.. so there are plenty of other ways to find what is true finances of any company, well, those will be told in my consultation fees paid.
@lespritmunger
🎉its amazing
@RichardAyres-l3r
There is no x in especially.
@jimhargrave3
Nancy Pelosi did much better investing than Buffet!! How is that??
@redstone5149
Guy works for Chipotle. Ignores Buffets rules and gives them a check anyway😂
@davidwilson7766
You said the company has a "debt free balance sheet" at 5:05. If that were true, then the debt to equity would be 0… $0 / equity = $0
@changsong-wj4zs
.
@JonathanPoland
Have you read zero annual reports? Rule #1 is NOT true. He also didn't create the rule. It was Ben Graham. Rule #2 is NOT true either. He looks at whether the company can pay its debts off in a timely period with net income not how much debt/equity it has, and even that rule he's broken several times. Rule #3 is NOT true either. He has famously used preferred stock purchases as a funding tool, often during times of financial distress or uncertainty for the companies involved. BRK owned preferreds on GE, BAC, GS, OXY all BIG MASSIVE positions. Cities Service Preferred was BUFFETT'S first stock at 11. Rule #4 IS true, but you miss the most important calculation. Every dollar of retained should create a dollar or more of market value. Without that it's meaningless to keep. Many stocks he's bought have negative retained. Rule #5 IS true. But it's not as important to buy back stock if you can put that money into growth elsewhere more productively. It's kind of like a "well I have too much money, I have to do something with it, let's buy back our stock…" the problem is that Buffett also doesn't condone doing it at high prices, which invariable means he is agnostic to this one.
@DossieSingers
Never trust a man that can't pronounce "Expecially" haha
@DuskAmplifier
and if you bought Chipotle after this, you'd be down 50%. 🙁
@lostcraver
You contradict yourself by saying the Chipotle has no debt (in reality it does, as long term leases are considered as long term obligations), then a few seconds later you say they have a debt/equity ratio of 1.2
@Orgilican
Thank you for the explanation, it is very helpful for me as a beginner.
@romansolomatin2313
I wish I could disable in-video subtitles…
@stephenvickers6251
Slow down when you talk. You rattle off the statements to quick
@nancysmith9487
What if balance sheets are in correct fabricated numbers
@jeffyeung6657
I think there're tons of exceptions for number 2. For example, Apple has been buying back stocks above book value over the years. That led to equity being reduced, in some other cases, to the negative territory. Warren said there's nothing wrong with it. But again, one might have to look deeper and make a lot of exceptions to check the number 2 box.
@VICTORVONDOOM4
Basically, blue chip companies?
@elwinharrison1099
Could you add a link the website you used to get the financial information.
@Dave-lr2wo
Good video. Please practice pronouncing "especially" correctly. And try to avoid pronouncing "str" words with SH. It's strong, not shtrong, etc.
@FinTalks-s2o
really good strategies, but execution is too difficult
@NotJames3725
Explained then demonstrated 👍🏻 = Winner!
@dagwould
"Why does he have this rule of thumb in place?" What does 'in place' add to the meaning of he questions? A: nothing. Just "Why does he have this rule of thumb" says it all. The verb 'have' does all the heavy lifting.
@reachmemalay
Thank you this was quite insightful!
@user-gn1ic9ww8q
once out on bad terms also means that person or persons arent allowed to be employeed by any my companies, they arent aloowed to live in any my places, either or arent allowed in any my vehicles.
@7sistersenterpriseinc142
Wow, I used to not understand a company's balance sheet. 😅 Thanks for a clear explanation of this. I am starting to invest and this helps me tremendously. 👍 I also read people's comments and suggestions. Good to know..
I am a new subscriber. 😊
@JerryUpchurch-f2o
What company does he own that has more cash than debt?
@fraserhardmetal7143
There's one fundamental thing that all these accountants, analysts, and investors omit in their take downs and predictions.
Not one of them had the ability or the balls to create a business, a company or an enterprise. All these people are capable of is juggling other peoples money and profiting on economic downturns.
@tomspreadbury2915
You Don't need Buffett to tell you this. Any accountant or Finance analyst of any kind, and most consultants in finance can tell you all of this.
@angeloeliopoulos2317
U sound stupid when u pronounce it ekspecially. Just saying.
@GianiStuparich
Why a so pushy spamming? Unacceptable
@bowtoyoursensei1
Its pronounced ES-pecially not EKS-pecially
@lylalee7084
You are so passionate in providing biased information with marketing fluffs to create a cult of personality.
@CCave-wj6xy
Warren doesn't want to see the company to have any preferred stock unless they're issuing it to him And him alone… On ridiculously favorable terms.
@ViloiLewis
Please send me buffet rule of thumb strategic balance sheet analysis
@maurocafi3062
Strane parole per uno, come BUFFETTO, che si è messo TUTTO IN TASCA: Cioè non ha dato mai una lira ai suoi azionisti e in più a goduto di un aumento stratosferico della massa monetaria MONDIALE!?
Ai suoi azionisti, ha dato solo l'ELEMOSINA della salita del titolo, quando c'è stata e per chi ha indovinato i tempi, ma il SUCCO dei capitali l'ha ciucciato TUTTO LUI. ALLA FACCIA MOSTRA!
@artherrera4669
You are totally wrong. Preferred Stock is not an hybrid between debt and equity. Preferred stocks are just stocks with other additional conditions to shareholders like additional profit during profit distribution, etc.