Want To Learn How To Analyze Stocks Like Warren Buffett, Start Here

New to stock analysis? 

Overwhelmed by where to start? 

We have five steps to follow to start learning how to analyze companies like Warren Buffett. Warning, these steps are simple, but not easy. 

•  Learn accounting
•  Start reading 10-ks or annual reports
•  Read quarterly reports (10-qs)
•  Read company earnings calls & presentations
•  Spend time thinking

Let's unpack these a bit.

Accounting is the language of business and without understanding the language of business, you will never understand what drives a company, or analyze their balance sheet or cash flows. Buffett has mentioned many times he believes you must start with accounting and stay with it until you understand the concepts. 

Next, by digging into the financial reports from the company (10k,10q, earnings calls) you learn everything you need to know related to the company. You will learn how they make money, future plans, struggles, business models, management views, and capital allocation. 

Everything you need to know is inside these documents. That is why Buffett spends every week reading 500 pages of financial statements. 

Lastly, spend time away from your phone, or any media to think through what you have learned. This is Buffett's special sauce and his competitive advantage, and we can use it too.