Interpreting Financial Statements Like Warren Buffett

Test your understanding of the key principles Warren Buffett uses to analyze a company's financial statements and identify sustainable competitive advantages.

Business mixed 8 Questions Video Quiz

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Q1 Beginner 1 pts

According to the video, which product is more likely to be popular in 2050? Video Reference:
"The answer is quite obvious. When Warren Buffett is looking for investments with a sustainable compe..."

Timestamp: 1:00

Coca-Cola Snapchat

Q2 Intermediate 2 pts

What is a key trait that Warren Buffett looks for in a company's income statement? Video Reference:
"Another thing that Warren Buffett wants to see in his investments is a consistent and high gross mar..."

Timestamp: 2:00

Consistent and high gross margin Rapidly growing revenue Frequent changes in leadership

Q3 Intermediate 2 pts

True or False: Warren Buffett prefers companies that can expand using little to no long-term debt. Video Reference:
"Therefore, look for businesses with little to no long-term debt. If a company can pay off all its lo..."

Timestamp: 3:00

True

False

Q4 Advanced 3 pts

Which of the following financial metrics does Warren Buffett use to measure how efficiently a company is using its capital? Video Reference:
"To measure how efficiently a company is using these reinvested earnings, return on equity can typica..."

Timestamp: 2:30

Select all correct answers

Return on equity Return on net tangible assets Debt-to-equity ratio

Q5 Beginner 1 pts

True or False: Warren Buffett prefers companies that have a high percentage of capital expenditures relative to net earnings. Video Reference:
"Look at what % capital expenditures are of net earnings you want them to be as low as possible. Lowe..."

Timestamp: 3:30

True

False

Q6 Intermediate 2 pts

Which of the following are key factors that Warren Buffett looks for in a company's balance sheet? Video Reference:
"Warren Buffett likes to look at a figure called retained earnings. The figure is being added to or w..."

Timestamp: 2:30

Select all correct answers

Steady growth in retained earnings High levels of long-term debt Frequent changes in management

Q7 Advanced 3 pts

Which of the following are key traits that Warren Buffett looks for in a company's income statement? Video Reference:
"First and foremost, I will assume that you know some basics about financial statements. ... Let's st..."

Timestamp: 2:00

Select all correct answers

Consistent and high gross margin Rapidly growing revenue Frequent changes in leadership All of the above

Q8 Beginner 1 pts

True or False: Warren Buffett prefers companies that have a high percentage of capital expenditures relative to net earnings. Video Reference:
"Look at what % capital expenditures are of net earnings you want them to be as low as possible. Lowe..."

Timestamp: 3:30

True

False

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Interpreting Financial Statements Like Warren Buffett

According to the video, which product is more likely to be popular in 2050? Video Reference: "The answer is quite obvious. When Warren Buffett is looking for investments with a sustainable compe..." Timestamp: 1:00

What is a key trait that Warren Buffett looks for in a company's income statement? Video Reference: "Another thing that Warren Buffett wants to see in his investments is a consistent and high gross mar..." Timestamp: 2:00

True or False: Warren Buffett prefers companies that can expand using little to no long-term debt. Video Reference: "Therefore, look for businesses with little to no long-term debt. If a company can pay off all its lo..." Timestamp: 3:00

Which of the following financial metrics does Warren Buffett use to measure how efficiently a company is using its capital? Video Reference: "To measure how efficiently a company is using these reinvested earnings, return on equity can typica..." Timestamp: 2:30

True or False: Warren Buffett prefers companies that have a high percentage of capital expenditures relative to net earnings. Video Reference: "Look at what % capital expenditures are of net earnings you want them to be as low as possible. Lowe..." Timestamp: 3:30

Which of the following are key factors that Warren Buffett looks for in a company's balance sheet? Video Reference: "Warren Buffett likes to look at a figure called retained earnings. The figure is being added to or w..." Timestamp: 2:30

Which of the following are key traits that Warren Buffett looks for in a company's income statement? Video Reference: "First and foremost, I will assume that you know some basics about financial statements. ... Let's st..." Timestamp: 2:00

True or False: Warren Buffett prefers companies that have a high percentage of capital expenditures relative to net earnings. Video Reference: "Look at what % capital expenditures are of net earnings you want them to be as low as possible. Lowe..." Timestamp: 3:30

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Calculating Your Results...

Source Video

According to the video, which product is more likely to be popular in 2050? Video Reference:
"The answer is quite obvious. When Warren Buffett is looking for investments with a sustainable compe..."

Timestamp: 1:00

What is a key trait that Warren Buffett looks for in a company's income statement? Video Reference:
"Another thing that Warren Buffett wants to see in his investments is a consistent and high gross mar..."

Timestamp: 2:00

True or False: Warren Buffett prefers companies that can expand using little to no long-term debt. Video Reference:
"Therefore, look for businesses with little to no long-term debt. If a company can pay off all its lo..."

Timestamp: 3:00

Which of the following financial metrics does Warren Buffett use to measure how efficiently a company is using its capital? Video Reference:
"To measure how efficiently a company is using these reinvested earnings, return on equity can typica..."

Timestamp: 2:30

True or False: Warren Buffett prefers companies that have a high percentage of capital expenditures relative to net earnings. Video Reference:
"Look at what % capital expenditures are of net earnings you want them to be as low as possible. Lowe..."

Timestamp: 3:30

Which of the following are key factors that Warren Buffett looks for in a company's balance sheet? Video Reference:
"Warren Buffett likes to look at a figure called retained earnings. The figure is being added to or w..."

Timestamp: 2:30

Which of the following are key traits that Warren Buffett looks for in a company's income statement? Video Reference:
"First and foremost, I will assume that you know some basics about financial statements. ... Let's st..."

Timestamp: 2:00

True or False: Warren Buffett prefers companies that have a high percentage of capital expenditures relative to net earnings. Video Reference:
"Look at what % capital expenditures are of net earnings you want them to be as low as possible. Lowe..."

Timestamp: 3:30