ACCT3610 Study Notes Lecture 1 Introduction Warren Buffet: I buy businesses, not stocks, businesses I would be willing to own

n forever that we understand, and are run by people whom we like, and that are priced attractively relative to their future prospects. Buy for less than than the business is intrinsically worth, with management of the highest integrity and ability. To analyse a business and determine its intrinsic value: Strategy analysis (wk 2) Accounting analysis (wk 3 & 4) Financial analysis (wk 5) Forecasting (wk 6) Valuation (wk 7 & 8)

From the text book: Chapter 1: The role of financial reporting in capital markets: Common situation where households have savings and entrepreneurs (or existing business) have business ideas in which they want to use these savings. There is a mismatch of information between the household and entrepreneur and this creates a need for financial reporting to decrease that mismatch and facilitate investment. This is where information intermediaries come in, with auditors, financial analysts etc. This is compared to financial intermediaries such as banks and venture capitalists.