3. What is a Balance Sheet and Margin of Safety

Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In lesson three, we explored the importance of a Balance Sheet. We learned that current assets and liabilities are income streams and obligations, respectively, that a company will receive or pay during the next 12 months. We also learned that the equity of a business was equal to the total assets minus the total liabilities. After determining a company's equity, we can use that important number to determine the margin of safety that's associated with buying a business.

Comments

1. Your way of explaining things is awesome!!!
2. Wow! It's incredible! You made it unbelievably easy to understand. Thank you so much for your effort!
3. when you "copy video URL at this time" where is it saved? Thanks
4. Why are equities expressed as a percentage on Seedrs?
5. This lessons are very easy to understand. Thank you for providing this for no cost.
6. I study Business at a university and never understood these concepts as well as I did by watching this video! Great job Preston! Keep up the good work and please share more content if you can.
   
   Cheers!
7. Credits must equal Debits.. Assets=Liability+Equity!!
8. I want to earn so much money money, cash cash, income income already
9. best m best .... SIR
10. your work is very valuable man thank you a lot
11. Good stuff
12. Thank you for the video really great stuff for people who want to learn ...god bless you..
13. Let me challenge you by this question > in lesson 2 her net income 20.000 ? I think wrong bcz borrowed the money from bank or someone else she have to pay them each month or year for the Ice cream stand , machine land for example for land each month has to pay 500 , stand 200 and machine 100 so the net income will be 1200 May you agree with that ?
14. great job mate!
15. Tanks tanks tanks 👏👏👏👏
16. Tanks for sharing this video this really help me understand Belance sheet
17. Seriously dude you are the one that has explained these accounting things in the most fantastic way ever!!! :D
18. How high of a margin of safety are we aiming for?
19. Very nice explanation man.. Thanks a ton!