Finding company with durable competitive advantage through interpreting income statement (a case study of go public poultry feed's companies in Indonesia

Abstract

One big problem of investor in the stock market is how to search companies that have a competitive advantage? Warren Buffet is the greatest investor in the world, one of his unique characteristics as an investor is He could interpret financial statement to find companies that are not only have a competitive advantage, but have a durable competitive advantage. Marry buffet says that: “In Warren Buffet search for the magic company with a durable competitive advantage, Warren Buffet always starts with the firm’s income statement. Income statements tell the investor the results of the company’s operation for a set period of time” (Buffett & Clark, 2008, p. 26). In this research, Researcher will focus to use or interpret an income statement only to find or make first screening to search companies with durable competitive advantage, even though income statement is not independent tool or the only tool to find companies with durable competitive advantage. For this case study, The researcher will use an income statement from go public poultry feed’s companies in Indonesia.