Warren Buffet Value Investing Strategy Toolkit

I. Warren Buffet Value Investing Strategy

Decision-making Investment Financial Tools in

Strategic Objective Portfolio Strategy Attitude & Mindset Cash on Hand Horizon
Process Frequency Excel

II. Stock Watchlist and Screener in Excel with real-time data

III. Detailed Stock Investment Decision-making Process

Assess my Understanding of the Assess the quality of the Assess if the Company is Fairly
Decide if you should invest
Company Company or Undervalued
1. Business model 1. Future earnings 1. Financial modeling best practices
2. Annual & quarterly reports 2. Free cash flow 2. Three financial statement model
Understanding
3. Income statement
3. Profit margin 3. Sophisticated discounted cash flow
4. Cash flow statement (DCF) valuation model
4. MOAT
5. Balance sheet 4. Simple discounted cash flow (DCF)
5. Management team
6. Sales & costs breakdown valuation model
6. Manageable leverage Quality Valuation
7. Financial ratios 5. Simple discounted earnings valuation
8. Industry model

IV. Stock Portfolio Management

Excel Trade Record Excel Stock Portfolio Excel Net Worth Calculation Excel Dashboard
Introduction

• This Toolkit was created by former JP Morgan Investment Bankers, and

McKinsey & Deloitte Consultants, after more than 3,000 hours of work
studying Warren Buffet. It includes all the Frameworks, Best Practices,
Templates and Excel Tools required to define and implement Warren Buffet’s
value investing strategy step by step. Outperform the market by simply investing
in good or great companies, fairly or undervalued, and perfectly understood.
• Join the 200,000+ Executives, Consultants & Entrepreneurs who are already
leveraging our Management Consulting Toolkits to improve the performance of
their organization and boost their own career.
• If you have any questions, send us an email at support@domontconsulting.com
and one of our ex-McKinsey, Deloitte & BCG Management Consultants will get
back to you within 2 business days.

Aurelien Domont
Management Consultant
Domont Consulting Managing Director

2
Content of the Toolkit

Best Practices Frameworks

Advice from
tier-1
Tools
Management What’s
Consultants
inside our
Toolkit?

Real-life Templates
Examples

Video Training
Step-by-step
Tutorials

3
Objectives of the Toolkit
The Toolkit includes frameworks, tools, templates, tutorials, real-life examples, and best practices
to help you:
• Define and implement Warren Buffet Value Investing Strategy: (1) Strategic objective, (2) Portfolio strategy, (3)
Attitude & mindset, (4) Decision-making process, (5) Investment Frequency, (6) Cash on Hand, (7) Horizon, (8)
Financial Tools in Excel
• Identify Opportunities with our Stock Watchlist and Screener in Excel including real-time data
• Implement Warren Buffet’s Stock Investment Decision-making Process: (1) Understanding of the company, (2)
Company quality assessment, (3) Company value assessment, (4) Decision
• Assess your Understanding of the Company you are considering investing in: (1) Business model, (2) Annual &
quarterly reports, (3) Income statement, (4) Cash flow statement, (5) Balance sheet, (6) Sales & costs breakdown, (7)
Financial ratios, (8) Industry
• Assess the quality of the Company: (1) Future earnings, (2) Free cash flow, (3) Profit margin, (4) MOAT, (5)
Management team, (6) Manageable leverage
• Assess if the Company is Fairly or Undervalued: (1) Financial modeling best practices, (2) Three financial
statement model, (3) Sophisticated discounted cash flow (DCF) valuation model, (4) Simple discounted cash flow
(DCF) valuation model, (5) Simple discounted earnings valuation model
• Create an Overall Assessment to Decide if you Should Invest
• Manage your Stock Portfolio Effectively: (1) Excel trade record, (2) Excel stock portfolio, (3) Excel net worth
calculation, (4) Excel dashboard

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Structure
I. Warren Buffet Value Investing Strategy

Decision-making Investment Financial Tools in

Strategic Objective Portfolio Strategy Attitude & Mindset Cash on Hand Horizon
Process Frequency Excel

II. Stock Watchlist and Screener in Excel with real-time data

III. Detailed Stock Investment Decision-making Process

Assess my Understanding of the Assess the quality of the Assess if the Company is Fairly
Decide if you should invest
Company Company or Undervalued
1. Business model 1. Future earnings 1. Financial modeling best practices
2. Annual & quarterly reports 2. Free cash flow 2. Three financial statement model
Understanding
3. Income statement
3. Profit margin 3. Sophisticated discounted cash flow
4. Cash flow statement (DCF) valuation model
4. MOAT
5. Balance sheet 4. Simple discounted cash flow (DCF)
5. Management team
6. Sales & costs breakdown valuation model
6. Manageable leverage Quality Valuation
7. Financial ratios 5. Simple discounted earnings valuation
8. Industry model

IV. Stock Portfolio Management

Excel Trade Record Excel Stock Portfolio Excel Net Worth Calculation Excel Dashboard
In the next slides, you’ll see a small preview of the Toolkit
I. Warren Buffet Value Investing Strategy

Decision-making Investment Financial Tools in

Strategic Objective Portfolio Strategy Attitude & Mindset Cash on Hand Horizon
Process Frequency Excel

II. Stock Watchlist and Screener in Excel with real-time data

III. Detailed Stock Investment Decision-making Process

Assess my Understanding of the Assess the quality of the Assess if the Company is Fairly
Decide if you should invest
Company Company or Undervalued
1. Business model 1. Future earnings 1. Financial modeling best practices
2. Annual & quarterly reports 2. Free cash flow 2. Three financial statement model
Understanding
3. Income statement
3. Profit margin 3. Sophisticated discounted cash flow
4. Cash flow statement (DCF) valuation model
4. MOAT
5. Balance sheet 4. Simple discounted cash flow (DCF)
5. Management team
6. Sales & costs breakdown valuation model
6. Manageable leverage Quality Valuation
7. Financial ratios 5. Simple discounted earnings valuation
8. Industry model

IV. Stock Portfolio Management

Excel Trade Record Excel Stock Portfolio Excel Net Worth Calculation Excel Dashboard
Table of Contents
I. Warren Buffet Value Investing Strategy

Decision-making Investment Financial Excel

Strategic Objective Portfolio Strategy Attitude & Mindset Cash on Hand Horizon
Process Frequency Tools

II. Stock Watchlist and Screener in Excel with real-time data

III. Detailed Stock Investment Decision-making Process

Assess my Understanding of the Assess the quality of the Assess if the Company is Fairly
Decide if you should invest
Company Company or Undervalued
1. Business model 1. Future earnings 1. Financial modeling best practices
2. Annual & quarterly reports 2. Free cash flow 2. Three financial statement model
Understanding
3. Income statement
3. Profit margin 3. Sophisticated discounted cash flow
4. Cash flow statement (DCF) valuation model
4. MOAT
5. Balance sheet 4. Simple discounted cash flow (DCF)
5. Management team
6. Sales & costs breakdown valuation model
6. Manageable leverage Quality Valuation
7. Financial ratios 5. Simple discounted earnings valuation
8. Industry model

IV. Stock Portfolio Management

Excel Trade Record Excel Stock Portfolio Excel Net Worth Calculation Excel Dashboard
Warren Buffet Value Investing Strategy
Strategic Objective

To achieve an average annual return of 20%+ by investing in companies which are good or great companies,
fairly or undervalued, and perfectly understood.

To put things into perspective, see below a comparison of the average annual return of the S&P 500, 95% of
Hedge Funds and Warren Buffet over the past 50 years:

Average annual return of the Average annual return after Average annual return of
S&P 500 fees of 95% of Hedge funds Warren Buffet

Below Above
10% 10% 20%

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Warren Buffet Value Investing Strategy
Strategic Objective

95% of Hedge funds are not able to beat the S&P 500 for the following reasons:

Too much With Billions of dollars under management, investment funds gravitate toward the biggest stocks, which are the only ones they can
money under buy in the multimillion-dollar quantities their need to fill their portfolios. Thus, many funds end up owning the same few overpriced
management giants.

Money flowing People tend to pour more money into funds as the market rises, which forces the managers to buy more stocks at inflated prices. On
in the wrong the other hand, people ask for their money back when the market drops, which forces the fund to sell stocks when the prices are
direction down. In other words, the funds are often forced to buy high and sell low.

Hedge funds will usually charge each year 2% of the sum under management (SUM) and 20% of the annual gains above the S&P 500
High fees (the few years when they beat the market). These high fees will significantly decrease the returns of their clients.

High transaction To justify their high fees and salary, investment funds will tend to buy and sell many times every month. The problem with this strategy,
fees is that the more transactions, the more transaction fees and tax the fund will have to pay.

Many portfolio managers get bonuses for beating the market, so they obsessively measure their returns against benchmarks like the
Fear of losing
S&P 500. If a company is added to the S&P 500, hundreds of funds compulsively buy it. If they don’t and the company does well, they
their job will look foolish. If they do buy the company and it does poorly, no one will blame them.

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Warren Buffet Value Investing Strategy Company XYZ

Decision-making Process: Template

Good Company Yes No

Understanding?

Good or Great Fairly or

Yes No Company? undervalued? Yes No

Investment approved Investment Disapproved

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Scope of this deliverable
I. Warren Buffet Value Investing Strategy

Decision-making Investment Financial Tools in

Strategic Objective Portfolio Strategy Attitude & Mindset Cash on Hand Horizon
Process Frequency Excel

II. Stock Watchlist and Screener in Excel with real-time data

III. Detailed Stock Investment Decision-making Process

Assess my Understanding of the Assess the quality of the Assess if the Company is Fairly
Decide if you should invest
Company Company or Undervalued
1. Business model 1. Future earnings 1. Financial modeling best practices
2. Annual & quarterly reports 2. Free cash flow 2. Three financial statement model
Understanding
3. Income statement
3. Profit margin 3. Sophisticated discounted cash flow
4. Cash flow statement (DCF) valuation model
4. MOAT
5. Balance sheet 4. Simple discounted cash flow (DCF)
5. Management team
6. Sales & costs breakdown valuation model
6. Manageable leverage Quality Valuation
7. Financial ratios 5. Simple discounted earnings valuation
8. Industry model

IV. Stock Portfolio Management

Excel Trade Record Excel Stock Portfolio Excel Net Worth Calculation Excel Dashboard
Purpose of our Stock Watchlist and Screener

Our stock watchlist and screener is a tool that will help us:
• Keep track of specific stocks or securities we are interested in monitoring or potentially investing in. It
is essentially a curated list of stocks that we want to follow closely and gather information about.
• Filter and narrow down a large universe of stocks based on specific criteria or parameters.

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Our Stock Watchlist and Screener is in Excel

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Our Stock Watchlist and Screener includes multiple key data automatically
updated based on Official data

Industry This column highlight the industry the company belongs to (e.g. Banking services, Specialty retailers, Software and IT Services, etc.).

Market capitalization, often referred to as "market cap," is a measure used to determine the total value of a publicly traded company. It represents
Market
the market value of a company's outstanding shares of stock and is calculated by multiplying the current share price by the total number of
Capitalization outstanding shares.

The price-to-earnings ratio (P/E ratio) is a valuation metric used to assess the relative value of a company's stock by comparing its stock price to
P/E Ratio its earnings per share (EPS). It is one of the most widely used financial ratios by investors and analysts. The P/E ratio is calculated by dividing the
market price per share of a company's stock by its earnings per share. A lower P/E ratio means that the share price is becoming more attractive.

All-time High The term “All-time high" refers to the highest trading price at which a particular stock has traded since 2000.

% decrease from This column displays how much the current price is down compared to the all-time High. If the current price is down by 20% or 30%, maybe it
all-time high means that the share price is now more attractive.

The term "52-week high" refers to the highest trading price at which a particular stock has traded during the past 52-week period. It represents the
highest price point that the stock has reached over the course of the previous year, regardless of whether it was sustained for a brief period or
52-week High sustained for an extended period. The 52-week high is a commonly tracked metric by investors and traders to assess the recent performance and
potential value of a stock. It provides a reference point for understanding how close or far the stock is from its recent peak price.

% decrease from This column displays how much the current price is down compared to the 52-week High. If the current price is down by 20% or 30%, maybe it
52-week High means that the share price is now more attractive.

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The tool automatically highlights in green the stocks that meet certain
criteria
Using conditional formatting, our Tool
automatically highlights the stocks that have a P/E
ratio below 25. Based on your needs, you can
easily change the number by:
1. Selecting the numbers in the P/E ratio column
2. Click on the Home tab
3. Click on Conditional Formatting and then
Manage Rules
4. Double click on the rules and replace 25 by
your own number
Using conditional formatting, our Tool automatically highlights
the stocks that have seen their share price decreased by
more than 20% from their all-time high. Based on your needs,
you can easily change the number by:
1. Selecting the numbers in the “% decrease from 52-week
low” column
2. Click on the Home tab
3. Click on Conditional Formatting and then Manage Rules
4. Double click on the rules and replace 25 by your own
number
Using conditional formatting, our Tool automatically
highlights the stocks that have seen their share price
decreased by more than 20% their 52-week high. Based
on your needs, you can easily change the number by:
1. Selecting the numbers in the “% decrease from 52-
week low” column
2. Click on the Home tab
3. Click on Conditional Formatting and then Manage
Rules
4. Double click on the rules and replace 25 by your own
number
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We also like to use the filter feature to narrow down our list of stocks

For example, we can use this filter feature to filter the companies that
are in the Banking industry.

16
Table of contents
I. Warren Buffet Value Investing Strategy

Decision-making Investment Financial Tools in

Strategic Objective Portfolio Strategy Attitude & Mindset Cash on Hand Horizon
Process Frequency Excel

II. Stock Watchlist and Screener in Excel with real-time data

III. Detailed Stock Investment Decision-making Process

Assess my Understanding of the Assess the quality of the Assess if the Company is Fairly
Decide if you should invest
Company Company or Undervalued
1. Business model 1. Future earnings 1. Financial modeling best practices
2. Annual & quarterly reports 2. Free cash flow 2. Three financial statement model
Understanding
3. Income statement
3. Profit margin 3. Sophisticated discounted cash flow
4. Cash flow statement (DCF) valuation model
4. MOAT
5. Balance sheet 4. Simple discounted cash flow (DCF)
5. Management team
6. Sales & costs breakdown valuation model
6. Manageable leverage Quality Valuation
7. Financial ratios 5. Simple discounted earnings valuation
8. Industry model

IV. Stock Portfolio Management

Excel Trade Record Excel Stock Portfolio Excel Net Worth Calculation Excel Dashboard
Financial Analysis
Purpose

Financial analysis,
based on financial
statements, is the
foundation for
determining the
financial health of a
company.

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Financial Analysis
We are going to analyze the 3 key financial statements

Income Statement Balance Cash Flow

(also called Profit & Loss Sheet Statement Statement
statement)

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Financial Analysis
The 3 financial statements capture 3 Business activities

• Working Capital
• Land
• Buildings
Investing • Machines & equipment
• Intangibles

• Research
• Purchasing
• Bank debt
• Producing
Operating Financing • Corporate bonds
• Labor
• Shareholder equity
• Marketing
• Sales

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Income Statement
Purpose

The Income Statement, This financial statement

also called Profit & Loss provides information
(P&L), is a financial that shows the ability of
statement that a company to generate
summarizes the profit by increasing
revenue and costs revenue and reducing
incurred during a costs
specific period of time
(usually a fiscal quarter
or year)

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Income Statement
The Income Statement has three primary components:
Revenue
The money earned by the company
which includes:
• The sale of goods and services
• The interest earned
• Some investment activities
- Expenses = Net Income
The Money spent to generate revenue Net Income is referred to as “Profit” or
which includes: “Earnings,” when not negative and
“Loss” when negative.
• Cost of Goods Sold (COGS): The direct
costs attributable to the production of the It is the company revenues minus its
goods sold by a company expenses
• Selling Expenses: Cash payments (or
equivalent) for marketing services
• Administrative Expenses: Costs to the
firm to cover items such as salaries
• Interest Expenses: Payments made to
cover costs of financing
• Tax Expense: Payments made to the
government to cover income taxes
• Depreciation Expenses: Amount of asset
usage that is applied to this year
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Scope of the folder “Company Valuation”
I. Warren Buffet Value Investing Strategy

Decision-making Investment Financial Tools in

Strategic Objective Portfolio Strategy Attitude & Mindset Cash on Hand Horizon
Process Frequency Excel

II. Stock Watchlist and Screener in Excel with real-time data

III. Detailed Stock Investment Decision-making Process

Assess my Understanding of the Assess the quality of the Assess if the Company is Fairly
Decide if you should invest
Company Company or Undervalued
1. Business model 1. Future earnings 1. Financial modeling best practices
2. Annual & quarterly reports 2. Free cash flow 2. Three financial statement model
Understanding
3. Income statement
3. Profit margin 3. Sophisticated discounted cash flow
4. Cash flow statement (DCF) valuation model
4. MOAT
5. Balance sheet 4. Simple discounted cash flow (DCF)
5. Management team
6. Sales & costs breakdown valuation model
6. Manageable leverage Quality Valuation
7. Financial ratios 5. Simple discounted earnings valuation
8. Industry model

IV. Stock Portfolio Management

Excel Trade Record Excel Stock Portfolio Excel Net Worth Calculation Excel Dashboard
Valuation models

Screenshots Description

Sophisticated
discounted cash
More Accurate but more time consuming
flow (DCF)
valuation model

Simple
discounted cash
Very quick & easy
flow (DCF)
valuation model

Simple
discounted
Very quick & easy
earnings
valuation model

24
Scope of the folder “Company Valuation”
I. Warren Buffet Value Investing Strategy

Decision-making Investment Financial Tools in

Strategic Objective Portfolio Strategy Attitude & Mindset Cash on Hand Horizon
Process Frequency Excel

II. Stock Watchlist and Screener in Excel with real-time data

III. Detailed Stock Investment Decision-making Process

Assess my Understanding of the Assess the quality of the Assess if the Company is Fairly
Decide if you should invest
Company Company or Undervalued
1. Business model 1. Future earnings 1. Financial modeling best practices
2. Annual & quarterly reports 2. Free cash flow 2. Three financial statement model
Understanding
3. Income statement
3. Profit margin 3. Sophisticated discounted cash flow
4. Cash flow statement (DCF) valuation model
4. MOAT
5. Balance sheet 4. Simple discounted cash flow (DCF)
5. Management team
6. Sales & costs breakdown valuation model
6. Manageable leverage Quality Valuation
7. Financial ratios 5. Simple discounted earnings valuation
8. Industry model

IV. Stock Portfolio Management

Excel Trade Record Excel Stock Portfolio Excel Net Worth Calculation Excel Dashboard
Warren Buffet Value Investing Strategy
Financial Tools in Excel: Stock investment assessment

26
Warren Buffet Value Investing Strategy
Financial Tools in Excel: Trade record

27
Warren Buffet Value Investing Strategy
Financial Tools in Excel: Stock portfolio

28
Warren Buffet Value Investing Strategy
Financial Tools in Excel: Dashboard #1

29
Warren Buffet Value Investing Strategy
Financial Tools in Excel: Dashboard #2

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Structure of the Toolkit
The Toolkit includes many Powerpoint slides, and Excel sheets organized in multiple folders that you can
download on your device immediately after your purchase.

210 editable Powerpoint slides*

22 Excel sheets*

1. Overview 4. Investment Decision-making Process

2. Warren Buffet Value Investing Strategy 5. Stock Portfolio Management
3. Stock Watchlist and Screener

*Please note that the number of Powerpoint slides and Excel sheets listed is the number of unique slides and sheets. For example, a Powerpoint slide
that has been duplicated to facilitate our clients’ understanding only counts for one slide

31
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