Warren Buffett's investment success is based on buying companies with a sustainable competitive advantage.

• Buffett is one of the richest men in the world, thanks to his investment strategy.
• He focuses on companies with a sustainable competitive advantage such as Coca-Cola, Moody’s, or See’s Candy.
• Financial statements are crucial for investors, as they are considered the language of business.

Warren Buffett values consistency in a company's performance over time.

• The best holding period for an investment is considered forever.
• Buffett prefers companies with a long history of consistency in earnings, low debt, and profitability.
• Consistency leads to reduced costs and allows shareholders to experience tax-free compound interest.

Key indicators in an income statement are crucial for identifying strong investments.

• High and consistent net earnings and gross margins are important for a sustainable competitive advantage.
• Apple is used as an example to illustrate desirable financial indicators.
• Comparing net margins with competitors helps to assess the business's strength.

Retained earnings and efficient use of capital on the balance sheet are signs of a strong business.

• Buffett looks for steady growth in retained earnings and high return on equity.
• Businesses with a competitive advantage typically require little debt for expansion.
• Apple's extensive dividends and share repurchase program are noted, despite not meeting the retained earnings criterion.

The cash flow statement reveals the actual financial liquidity and expenditures of a company.

• Capital expenditures should be a low percentage of net earnings.
• Apple's low capital expenses and substantial cash distribution to shareholders are highlighted.
• The augmented payout ratio sometimes exceeding 100% demonstrates Apple's generous shareholder returns.

There are specific circumstances when selling a stock may be justified, despite Buffett's preference for long-term holding.

• Consider selling for a better investment, if the company's competitive advantage is at risk, or during overvalued markets.
• Buffett advises considering sales when PE ratios exceed 40.
• Selling can improve personal finances or allow investment in undervalued opportunities.

The video concludes with a summary of key points and an invitation to explore further resources.

• Consistency is the primary indicator of a business with a durable competitive advantage.
• The book 'Warren Buffett and the Interpretation of Financial Statements' offers more insights not covered in the video.
• Viewers are encouraged to support the channel and further their understanding of Buffett's investment strategies.