Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffett the World's Most Famous Investor

Mary Buffett identifies the specific mathematical and qualitative criteria Warren Buffett uses to select stocks. The text focuses on the concept of business perspective investing, treating a stock purchase as the acquisition of an entire enterprise rather than a speculative trade. It outlines the requirement for a durable competitive advantage, or a moat, and provides formulas for calculating expected annual rates of return. These calculations involve analyzing historical earnings per share, debt-to-equity ratios, and the retention of earnings to project future intrinsic value and determine an appropriate entry price.

This book is for individual investors who want to move away from technical analysis and toward long-term fundamental valuation. Readers use these chapters to build a disciplined screening process for identifying undervalued companies with predictable growth. The audience learns to interpret corporate financial statements through the lens of compounding. By the end, a reader understands how to ignore market volatility and focus exclusively on the underlying profitability and capital allocation of a business.