For a dividend investor, your points on analyzing the Cash Flow Statement and MD&A are especially critical for determining the long-term safety of the payout. It's one thing for a company to pay a dividend, but it’s another for it to be sustainably covered by free cash flow, not debt. :)
I was wondering what the source is for this information?
I found it very helpful and always wondered how a Buffet would approach a 10-k. If he would read the whole thing or just look at numbers.
I don’t spend enough time reading 10-k but every time I have I have learned a great deal(even if it didnt end up leading to an investment opportunity). Just learning about how different companies operate can be really interesting!
Exactly, Tim! And we shouldn't feel disappointed or obligated to buy a stock just because we read the entire 10-K. That has to be an intrinsic part of the process—nothing more.
As for the sources, there's no single definitive one. In fact, it's a combination of several books. Buffett never explicitly taught how to read a 10-K, but we can infer what his process might look like from the following: The Snowball, Inside the Ultimate Money Mind, Invest Like Warren Buffett, The Warren Buffett Way, and of course, all of the Berkshire Hathaway letters from 1965 to 2025.
Inside Buffett’s Latest Portfolio Changes - Warren Buffett’s Final Year: 1 New Buy, 2 Exits, 6 Cuts, and 7 Increases
https://ffus.substack.com/p/warren-buffetts-successor-secret
Nice post, Fringe!!!
For a dividend investor, your points on analyzing the Cash Flow Statement and MD&A are especially critical for determining the long-term safety of the payout. It's one thing for a company to pay a dividend, but it’s another for it to be sustainably covered by free cash flow, not debt. :)
Absolutely! Any company could post high yields for a while if they were willing to leverage themselves to get there.
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I was wondering what the source is for this information?
I found it very helpful and always wondered how a Buffet would approach a 10-k. If he would read the whole thing or just look at numbers.
I don’t spend enough time reading 10-k but every time I have I have learned a great deal(even if it didnt end up leading to an investment opportunity). Just learning about how different companies operate can be really interesting!
Exactly, Tim! And we shouldn't feel disappointed or obligated to buy a stock just because we read the entire 10-K. That has to be an intrinsic part of the process—nothing more.
As for the sources, there's no single definitive one. In fact, it's a combination of several books. Buffett never explicitly taught how to read a 10-K, but we can infer what his process might look like from the following: The Snowball, Inside the Ultimate Money Mind, Invest Like Warren Buffett, The Warren Buffett Way, and of course, all of the Berkshire Hathaway letters from 1965 to 2025.