One of the first things I do when researching a company is look at the quantitative data. This means going through the boring process (well boring for some people, I think it’s kind of fun) of reading the financials: income statement, balance sheet, and statement of cash flows. The first data point that I always look at are the margins the company is producing. Why?

How do businesses make money? -Buffetology (Buffet, Clark)

  1. By having the highest profit margins possible
  2. By having the highest inventory turnover possible

It’s good to own businesses with high profit margins and high inventory turnover…

Anthony Sarmiento

writing, for now

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