Thursday, March 21, 2019
Tech Data’s Goodwill Adjustment

Tuesday, March 19, 2019
There’s Taxes, and There’s Taxes

Saturday, March 16, 2019
Adventures in Tax Cuts and Net Income

Monday, March 11, 2019
Big Moves in Goodwill, Intangible Value

Friday, March 8, 2019
CVS, Goodwill, and Enterprise Value

Thursday, February 28, 2019
Summary of Our Goodwill Research/ How-To

Wednesday, February 27, 2019
What Does ‘Other’ Mean? An Example

Thursday, February 21, 2019
Another Tale, Buried in the Footnotes

Wednesday, February 13, 2019
Low Latency Calcbench

Monday, February 11, 2019
Now Streaming on Hulu: Red Ink

Thursday, February 7, 2019
Early Look at 2018 Tax Decline

Wednesday, February 6, 2019
You Revised WHAT, Netflix?

Thursday, January 31, 2019
Talking About Huawei Exposure

Wednesday, January 30, 2019
Another Discrepancy in Reported Numbers

Wednesday, January 30, 2019
Finding Revised Facts: Hertz Edition

Wednesday, January 23, 2019
GE Commercial Aviation Services: Bringing Numbers to Light

Monday, January 21, 2019
Differences in Earnings Releases and 10-Ks

Wednesday, January 16, 2019
The Importance of Textual Analysis

Tuesday, January 8, 2019
A Look at Climate Change Disclosures

Wednesday, January 2, 2019
Quants: Point-in-Time Data for Backtesting

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Obviously, the headline is a joke. I don’t know if anyone keeps track of how many silly “Invest Like Warren Buffet” articles come out every day, but i bet this one isn’t even in the first 100.

However, he knows how to invest. And while home over Christmas I couldn’t help but notice a dusty 1951 vintage copy of Graham and Dodd’s “Security Analysis” on an old out of the way shelf.


Plain green cover and generic title aside, these two Columbia biz school profs are credited by Buffet himself as the reason he attended Columbia (besides the fact he was rejected by Harvard). So what wisdom can this book contain for us in the year 2015? Let’s take a look:


First impression? Apparently railroads were a lot more important in 1951 than they are now, due to the large portion of the book dedicated to them. But, hey, railroads have been in the news lately due to low oil prices, so let’s read on.


What’s interesting is the 8.5% net income margin shown here on our FY 1949 income statement for Chicago, Burlington & Quincy is good, but still less than half of the eye popping 20% margin delivered (no pun intended) by Union Pacific (UNP) just last year. In fact, looking at the 9 railroads we have data for, seven had net income margins in the double digits in 2013:


What’s the take away? Well, Warren Buffet bought Burlington Northern Santa Fe in 2010. Apparently he has kept this book close all these years. Maybe we should too?

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