Buffett and Beyond: Uncovering the Secret Ratio for Superior Stock Selection + Website

LEARN THIS PROVEN METHOD TO BUILD GROWTH AND INCOME PORTFOLIOS THAT OUTPERFORM THE PROS

Why reinvent the wheel? Warren Buffett has been using a simple strategy to achieve long–term investment success for over half a century. Buffett and Beyond reveals this easy to understand strategy and expands on Buffett′s ideas to give you a portfolio–building technique that will outperform 96% of professional money managers over the long run.

The method is simple. Using Clean Surplus Accounting to calculate a unique Return on Owners′ Equity (ROE), which is totally different than the traditional accounting ROE that you learned about in school, you can easily locate firms with the fastest and most consistent growth patterns. In Buffett and Beyond, you′ll see the evidence for yourself: from 1987 to the present, portfolios focusing on above–average Clean Surplus ROEs have outperformed the S&P 500 average over every economic cycle. Best of all, this method even allows you to predict the long–term future success of portfolio positions taking Buffett′s approach to the next level.

Complete with access to a companion website featuring tutorial videos, PowerPoint slides, computer software, and other resources, Buffett and Beyond is a quick read that will help you easily turn your portfolios into stable sources of long–term value.

Preface

Introduction

Chapter 1: The Purpose of This Book–Your Journey

Chapter 2: About Warren Buffett

Chapter 3: Determining the Earning Capacity of a Company (Now really, can it be this easy?)

Value Is Determined by the Creation of Wealth

The Beach Factor

Clean Surplus

Determining an Efficient Company

Take Your Bank Account

Bonds

Earning Capacity

How to Determine the Operating Efficiency of a Company

Sooooo Important

You See ROE Tells Us Everything

Let s Ask Warren

Summary The Key to the Investing Business

Why Hasn t the Entire World Figured This Out Yet?

You Will Learn

Chapter 4: My Theory of Why Most Money Managers of the World Cannot Outperform the Market Averages

My Contest Beware How You Select the Random Portfolio

One Step Beyond Buffett

You Don t Have to Worry

Fun with Our Portfolio Reviews

In Summary

Chapter 5: A Very Simple Income Statement and an Even Simpler Balance Sheet

The Income Statement

The Balance Sheet

Tying Together the Income Statement and Balance Sheet

Chapter 6: The Return on Equity Ratio

This Chapter and the Next and the Next

Chapter 7: The Return Portion of the Return on Equity Ratio

The Income Statement: Return

Chapter 8: The Equity Portion of the Return on Equity

Earnings

Accounting Statements and the Link between Them

The General Motors Story

Important; Important; Important

Let s Not Forget the Main Question

Addendum to The General Motors Story

Chapter 9: How to Determine an Equitable Equity Number

Let′s Review Just a Bit

Our New Return on Equity Equation

What Does Warren Buffett Say About All This?

Chapter 10: A Very Short Chapter on the Predictability of the Finance Valuation Models

Efficiency is the Key

College and Finance Valuation Models They Just Don t Work Very Well

Chapter 11: Clean Surplus ROE The Only Comparable Efficiency Ratio

Developing the Tools to Determine the Probability of Predictability

Clean Surplus

I Forget, What Are We Looking For? Let s Review!

Chapter 12: What Buffett Looks for in a Company, or How Clean Surplus Accounting Recognizes the Quality of a Company

Buffett

The Consumer Monopoly versus the Commodity Type of Business

The Commodity Type of Business:  Companies Buffett Avoids

The Consumer Monopoly: The Type of Business Buffett Loves

Chapter 13: General Electric Then and Now

How Buffett Uses Clean Surplus Accounting to Determine the Future Target Price and the All–Important Purchase Price, or Buy Low and Sell High

The Purchase Price

Back to Basics

A Very Important Point

Back to the Good Bank

Beware, Beware, Beware

A Real Stock

The P/E Ratio

Back to the Future

Let s Discount Back The All Important Purchase Price

Important Note:  Approximately

Very, Very Important Addendum to This Chapter

Chapter 14: General Motors Then and Now

The Blind Kid Gives His Opinion

Let s Look at General Motors

High ROE

Consistency up to 2002

Compare

The Blind Kid A Sea Story

A Lesson to Be Learned

So You See, Folks

Addendum to the General Motors Saga

Chapter 15: The Beginning: the Initial Research

The Dow Jones Industrials

Why Work with the Dow 30?

Constructing the Portfolio: My First Research into Clean Surplus

Methodology

1987: The Year of the Anomaly

Buffett the Anomaly

More Parameters: the Simple Rules

The Test Period Parameters

The Results

Compounded Returns

Is There a Correlation between the Roes and the Returns?

Getting Published in an Academic Journal

Chapter 16: Continuing Research: The Doctoral Research on the S&P 500

Finally A Lead Clean Surplus Accounting Buffett Graham Ohlson

The Results of the Research

Methodology

Notice the Difference

Standardized Against the Market

Portfolio Construction

Results: First Test Period

Results: Second Test Period

Bias

Summary of Results

Chapter 17: Rules for Structuring a Great Growth Portfolio

Debt

Chapter 18: Great, Great Job, But You′re Fired

A New Definition

The Research Begins

The First Class

To Teach or Not To Teach?

Chapter 19: Stocks on our Radio Show

Back in 2012

The Structure of This Report

Chapter 20: Stories of Audience Hecklers

The Know–it–all Half–Back

Chapter 21: A Great Dividend Income and Growth Strategy Part I: The Economic Spectrum of Dividend Stocks

Portfolio Parameters

The Four Stages of the Business Life Cycle

The Maturity Stage

Chapter 22: A Great Dividend Income and Growth Strategy Part II:  Selecting Stocks That Are Growing Their Dividends for Our Portfolio

Chapter 23: A Great Dividend Income and Growth Strategy Part III: Selecting Stocks That Are Growing in Price for Our Portfolio

Philip Morris International

AT&T

A Pretty Good Portfolio Stock

Chapter 24: Enhanced Income

Covered Option Writing

What Does This Have to Do with Options?

What? Give Up My Stock? Shame on You!

A Bit of Technical Analysis

Chapter 25: Portfolio Insurance

What Does Buffett Do?

So What Can We Do?

Ok, So What Can We Do to Take the Guessing out of Investing?

The Amazing Thing About Portfolio Insurance

Market Crash Mentality

Back to the Crash mentality

Which Scenario Do You Prefer?

How Do We Insure Our Portfolios?

Cash, Cash, Cash

But How Much Cash?

What Do We Mean by Market Conditions?

Chapter 26: What Have You Learned? A Summary

Dividend Income and Growth Strategy

Portfolio Insurance and Enhanced Income

Putting the Odds of Success on My Side

Chapter 27: We Won t Leave You out There Alone www.BuffettandBeyond.com

Supplementary Materials The Web Site, the Weekly Video, the Computer Program, and Educational Video Tutorials

The Weekly Video

The Computer Program

Tutorial Videos

For Individual Investors

For Professional Money Managers, Wealth Managers and Investment Advisors

About the Author

Index

Dr. JOSEPH BELMONTE is a renowned investment strategist and market thinker. Dr. Belmonte has taught investments, corporate finance, and advanced managerial finance for many years, and has lectured to numerous professional and investment groups across the country.