Warren Buffett closed his Buffett Partnership Ltd in 1969, because the whole market was so high that he was no longer able to find bargains to buy. Charlie Munger has been trying for years to convince him that they should instead focus on buying great companies with a durable competitive advantage over their rivals, where paying a little extra is justifiable. Buffett and Munger know if a company is great by examining its financial statements. Virtually all of the companies within the Berkshire Hathaway conglomerate have been bought after a thorough analysis of financial statements according to Buffett’s investment methods. In this section you will see how to do that by yourself.