Dear fellow investors,
Do you know what is Warren Buffett’s first “Value Stock” after he learnt how to invest from his teacher, Benjamin Graham? It was this stock called GEICO which he invested in 1951. The interesting thing was that he took a train ride that is probably about 10 hours 2 ways to travel to GEICO HQ to learn and understand about this company and its business. The side joke was that he went there on a weekend and after travelling 4 to 5 hours one way, he found the office building to be locked as it was closed over the weekend. Fortunately for him, a janitor directed him to Lorimer Davidson, the vice president who kindly spoke to him for hours on the business of GEICO. After the conversation and after questions from Buffett, he made his first investment.
Today, we have the internet as our advantage and many of the information which Buffett had needed as an investor back then, could now be probably found in the Annual Report of a business which we can easily download from the internet. If you have wondered how to read an annual report, I would like to share with you a checklist that I found to be really very useful.
It is a guide produced by SGX and it really helps us know what to look out for.
Enjoy it (Right Click Link below and Save As)
I do hope you benefit from this exercise and do let me know if you have any comments and I look forward to it and will love to learn from you too.
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Mind Kinesis Research Team