SMC Global Securities Limited

If this thread helped simplify Buffett’s mindset, Retweet and share it with an investor friend! And tell us below: What’s the #1 thing you look for in a company? #1

Here’s how Buffett sees things: “The income statement is where the show is. But the balance sheet tells you what’s behind the curtain”

He asks: “Can this business stand the test of time?” And the answer lies in the balance sheet, not the headline earnings.

4️⃣Coca-Cola: Buffett’s Balance Sheet Classic Buffett allocated a major chunk of his capital in Coca Cola back in 60s Why Buffett loves Coke: • The brand is timeless • Cash flows are predictable • Debt is manageable Global distribution = A huge moat that cannot be easily

And this is what Buffett cares about: 🔹Can the company survive a crisis? 🔹Is debt under control? 🔹Are retained earnings steadily rising, signaling reinvestment and internal growth? 🔹Is it building long-term value or just short-term profit?

Yes, its income looks great But the balance sheet reveals Coca Cola’s durability That’s where Buffett focused before buying

6️⃣TL;DR? Want to invest like Buffett? Look beyond this quarter’s earnings. Study the balance sheet for: ✅Quality of capital ✅Risk profile ✅Real strength Because true investing is about durability — not drama

2️⃣ Balance Sheet = Business DNA It shows: 🔷Assets: What the company owns at a point in time 🔷Liabilities: What it owes 🔷Equity: What’s really left for shareholders (this matters) https://t.co/NxydiCURVM

3️⃣What Buffett looks for on the Balance Sheet Here are 3 key filters: 🔹Capital Allocation → Is the company reinvesting smartly or burning cash? → And what is the main composition of the balance sheet? 🔹Financial Cushion → Is there enough cash or float to survive tough