Posted by For the last 5 months I have been learning accounting.
It was always at the back of my mind to learn accounting when I read financial statements of the companies that I wanted to invest in.
Once I was watching some videos of Warren Buffett when I came across this gem:
In this Video Buffett tells about the importance of Accouning in Running Business and in Investing. He says that “He runs into CEOs periodically who are frightened of Balance Sheet and Income Statement”.
After watching this video, I immediately decided that I want to learn Accounting. I enrolled into one of the institues of my city and I can honestly say I am enjoying it a lot.
I now get to see how transactions in a business get translated to balance sheet , PnL statement.
Learning Accounting definitely gives you a huge edge in your investment decisions and boosts your confidence in your holdings.
So, lets follow Buffett’s advice and Learn Accounting to invest better!
P.S. See this Video from Buffett in 1984