In lesson four, we learned that a share of a business is one unit of the overall business. For example, if an ice cream stand business was worth $100,000 dollars and the owner divided the company into 10,000 shares, each share would be worth $10. In this scenario, the 10,000 shares that the company would be divided into would be called the shares outstanding.

Just like a business, that becomes more or less valuable, 1 share of a business will do the same. Although we have only learned basic valuation techniques during the three previous lessons, we know that the earnings per share (EPS) -or just earnings- is one of the most important term to understand. The earnings per share (EPS) essentially tells us the profit that 1 share has made in a 1 year period.

Also, we learned that the book value (or equity per share) is a very important term because it provides the value of 1 share if the business stopped operations. A comparison of the book value and trading price (or market price) determines our margin of safety on each investment

During the video, we learned that it is important to look at 1 share as if it were a mini-business, because itís easy to proportionally look at the value of the entire business that way. We also learned that owning 1 share is no different than owning the entire business.

1. What is Value Investing?
2. Value a Small Business like Warren Buffett
3. What is a Balance Sheet and Margin of Safety
4. What is a Share
5. (PE). Finding Basic Stock Terms
6. Warren Buffett Stock Basics
7. What is a Bond
8. What are the components of a bond
9. Value a Bond and Calculate Yield to Maturity (YTM)
10. What is the Stock Market
11. Stock Market Crash and Market Bubbles
12. What is the Fed
13. What is Financial Risk
14. What is Inflation
15. What is the S&P Rating
16. What is a Yield Curve
17. How to use a Bond Calculator
18. Warren Buffett's Four Rules to Investing
19. Warren Buffett's 1st Rule - What is the Current Ratio and the Debt to Equity Ratio
20. Warren Buffett's 2nd Rule - Understanding Capital Gains Tax
21. Warren Buffett's 3rd rule - A stock must be stable and understandable
22. Warren Buffett Intrinsic Value Calculation - Rule 4
23. What is Preferred Stock
24. Calculate Yield to Call and How to buy Preferred Stock
25. Calculate Book Value with Preferred Stock
26. What is Income Investing
27. What is a Cash Flow Statement
28. How to read a cash flow statement
29. When to sell stock like Warren Buffett
30. What is Return On Equity - Warren Buffett's Favorite Number
31. (PE) Return on Equity Practical Exercise
32. What is Stock Volume
33. How to calculate stock terms
34. How to use a stock screener
35. What is Goodwill on a Balance Sheet
36. Warren Bufett's Owner's Earnings Calculation
37. Warren Buffett DCF Intrinsic Value Calculator

This course will teach you how to invest in stocks and bonds like Warren Buffett. It is highly recommended that you take all the lessons in order.

Download Preston's 1-page checklist for finding great stock picks: http://buffettsbooks.com/checklist

Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location:

http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=...

http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=...