Buffett and Beyond, + Website - Uncovering the Secret Ratio for Superior Stock Selection

"Construct a portfolio that is sure to outperform market averagesWarren Buffett had it right all along. Now it's your turn to learn how to construct a portfolio that is sure to outperform the market averages, as well as almost every professional money manager in the world. Warren Buffett's method of predictability can determine a future target price, which in turn determines his all-important purchase price. However, Buffett doesn't draw conclusions of his predictability method relative to the future total returns of portfolios. That's where Buffett and Beyond comes in, taking Buffett's method one giant step beyond, proving that if you select a portfolio of stocks using the predictability method in this book, you will outperform 96% of professional moneymanagers over the long term.In addition to the information in the book, readers will have access to a password-protected website that includes tutorial videos, PowerPoint slides, free trial access to a video newsletter, and a trial subscription to the author's computer program, which follows the research presented in the book. Explains Clean Surplus Accounting (CSA) to determine Return on Owners' Equity (ROE) Uses CSA to determine ROE in a unique way to verify Buffett's all-important purchase price Draws conclusions between Clean Surplus Return on Equity and future total returns Shows that every portfolio selected from the S&P 500 index with above-average Clean Surplus ROEs outperformed the S&P average during the test periods from 1987 to the present If you're an investor, this book will impact your financial life forever"--

List of contents

Preface: From Then Until Now xiii
 
Introduction: A Sea Story xvii
 
Chapter 1: The Purpose of This Book--Your Journey 1
 
Chapter 2: About Warren Buffett 5
 
Chapter 3: Determining the Earning Capacity of a Company (Now Really, Can It Be This Easy?) 11
 
The Beach Factor 12
 
Clean Surplus 13
 
Determining an Efficient Company 14
 
Take Your Bank Account 14
 
Bonds 15
 
Earning Capacity 15
 
How to Determine the Operating Efficiency of a Company 17
 
Sooo Important 19
 
You See . . . ROE Tells Us Everything 19
 
Let's Ask Warren 20
 
Summary--the Key to the Investing Business 21
 
Why Hasn't the Entire World Figured This Out Yet? 21
 
You Will Learn 22
 
Chapter 4: My Theory of Why Most Money Managers of the World Cannot Outperform the Market Averages 25
 
My Contest--Beware How You Select the Random Portfolio 29
 
One Step Beyond Buffett 30
 
You Don't Have to Worry 30
 
Fun with Our Portfolio Reviews 31
 
In Summary 32
 
Chapter 5: A Very Simple Income Statement and an Even Simpler Balance Sheet 35
 
The Income Statement 36
 
The Balance Sheet 36
 
Tying Together the Income Statement and Balance Sheet 37
 
Chapter 6: The Return on Equity Ratio 41
 
This Chapter and the Next and the Next 43
 
Chapter 7: The Return Portion of the Return on Equity Ratio 47
 
The Income Statement: Return 47
 
Chapter 8: The Equity Portion of the Return on Equity 53
 
Earnings 55
 
Accounting Statements and the Link between Them 55
 
The General Motors Story 57
 
The Central Flaw of Traditional Accounting 60
 
Let's Not Forget the Main Question 60
 
Addendum to The General Motors Story 61
 
Chapter 9: How to Determine an Equitable Equity Number 65
 
Let's Review Just a Bit 65
 
Our New Return on Equity Equation 67
 
What Does Warren Buffett Say about All This? 69
 
Chapter 10: The Predictability of Finance Valuation Models 71
 
Efficiency Is the Key 73
 
College and Finance Valuation Models--They Just Don't Work Very Well 74
 
Chapter 11: Clean Surplus ROE--the Only Comparable Efficiency Ratio 79
 
Clean Surplus 81
 
I Forget, What Are We Looking For? Let's Review! 83
 
Chapter 12: What Buffett Looks for in a Company, or How Clean Surplus Accounting Recognizes the Quality of a Company 87
 
Buffett 88
 
The Consumer Monopoly versus the Commodity Type of Business 89
 
The Commodity Type of Business: Companies Buffett Avoids 89
 
The Consumer Monopoly: The Type of Business Buffett Loves 92
 
Chapter 13: General Electric Then and Now 97
 
The Purchase Price 97
 
Back to Basics 99
 
A Very Important Point 100
 
Back to the Good Bank 100
 
Beware, Beware, Beware 102
 
A Real Stock 103
 
The P/E Ratio 105
 
Back to the Future 107
 
Let's Discount Back--the All Important Purchase Price 108
 
Important Note: Approximately 110
 
Very Important Addendum 111
 
Chapter 14: General Motors Then and Now 115
 
Let's Look at General Motors 116
 
High ROE 116
 
Consistency Up to 2002 117
 
Compare 118
 
The Blind Kid--A Sea Story 119
 
A Lesson to Be Learned 120
 
So You See, Folks 121
 
Addendum to the General Motors Saga 121
 
Chapter 15: The Beginning: The Initial Research 125
 
Why Work with the Dow 30? 126
 
Constructing the Por

About the author

DR. JOSEPH BELMONTE is a renowned investment strategist and market thinker. Dr. Belmonte has taught investments, corporate finance, and advanced managerial finance for many years, and has lectured to numerous professional and investment groups across the country.

Summary

Construct a portfolio that is sure to outperform market averages Warren Buffett had it right all along. Now it's your turn to learn how to construct a portfolio that is sure to outperform the market averages, as well as almost every professional money manager in the world.

Product details

• Authors: J Belmonte, Joseph Belmonte, Belmonte Joseph
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 20.03.2015
• EAN: 9781118955772
• ISBN: 978-1-118-95577-2
• No. of pages: 272
• Subjects: Social sciences, law, business > Business > Business administration; Kapitalmarkt, Kapitalanlage, Finanzwesen, Allg. Finanz- u. Anlagewesen, Finance & Investments, Finanz- u. Anlagewesen