Warren Buffett’s Secret “Value” Formula


Value Investing

17 Responses to “Warren Buffett’s Secret “Value” Formula”


  • Interesting post. When you define the net earnings and the dividend as percentages, are you then talking about the net earnings yield and the dividend yield? (That is net earnings per share/price per share, and dividends per share/price per share).

  • how about the RE% where is this found? also is the dividend number the dividend yield?

  • This video is grossly misleading. The Value Investing model does not define “value” as Net Earnings + Dividends. For anyone interested in Value Investing there are many books written on the subject, but please DO NOT take this message seriously.

  • I get the price to book from clearstation by typing in the? ticker and then selecting “Key Ratios” in the next field.

  • I get the price to book from clearstation by typing in the ticker and then selecting “Key Ratios” in the next field.

  • Okay Sir. could you please, (Show) where you are getting these numbers from. Such as, where do you find the net earnings, and Where? do you find the price to book, of a company.

  • if you go to yahoo finance you can find price to book by going to key statistics, but it is only the ratios from the last quarter

  • Very interesting. However, how do you calculate the price to book %?
    Thanks for sharing

  • What is your formula? In other words, what is “pct of profit”, or “pct of dividend? Are these percentages of equity, or sales, or share price? This needs to be defined and explained in order to make your formula usable.

  • I have made money on 80% of my stock trades, broken even on 10% and lost on 10%. Warren has only lost on 2% of his trades so I have a lot of improvement still left.

  • I agree, Buffet does take into account a lot of other details that take a lot of study to master but I invented the “Kendall:” formula based on what Warren does, that is, Warren is looking for high returns for a reasonable or low price.

  • Question…How rich are you?

  • very good, it has really helped me! thank you!

  • i like it too, thank you very much, other posts are great, too.

  • More like the Kendall formula than Warren Buffett formula.
    That’s nothing like his formula. He looks for intrinsic value of a company by doing so distinguish the Margin of Safety.

    What you are doing here is just looking at one year’s earning and dividend, am i right? That doesnt tell people the true value of business

  • where does the price to book figure come from?

  • I like it, thx !

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