“When asked how he became so successful in investing, Buffett answered: ‘we read hundreds and hundreds of annual reports every year.”

An annual report in many cases is a voluminous 100+ page boring document and even the best of minds would find concentrating tough. So how to make it an interesting read ? one way to do it would to be read it like a story book and then it would becomes a story of the business. This technique has helped me over years to pore through pages after pages

Let me share an example

First download the annual reports of the company that you want to study from BSE website at least for five years, Now there are many sections in an annual reports and each of them is very important however to understand business and learn from management commentary cut the Management discussion and analysis section and the directors review of operations section

Then paste those sections in a word document in a chronological order, now the fun begins.

Print those sections

Start reading will an inquisitive mind as you read start jotting notes and questions. I downloaded annual report copies of Poddar developers late last year and here is how I went (Poddar Annual Reports Cut)

After every extract from annual reports my observations & notes are in black

Once you have noted your observations, now go back to annual reports and start finding answers for your observations. Trust me it will be an enriching exercise and take the boredom out of reading annual reports

After the exercise this is how I plotted my understanding in a timeline

Poddar Developers - Timeline

Disc – Eventually I went long on Poddar, This post is strictly not a recommendation to buy Poddar developers Ltd