The Buffettology Workbook: Value Investing the Warren Buffett Way

The Buffettology Workbook: Value Investing the Warren Buffett Way

Posted by jack_miller | Published a year ago

With 52 ratings

By: Mary Buffett and David Clark

Purchased At: $3.74 (47 used & new offers)

Timeless Investing Strategies for Any Economy

For five decades, Warren Buffett has been making himself one of the wealthiest men in the world, amassing more than 30 billion dollars by investing in the stock market. Remarkably, he did it by spurning popular Wall Street trends, adhering instead to his own unique discipline, one the world has come to know as Buffettology. In The Buffettology Workbook, internationally acclaimed writer and lecturer Mary Buffett has again joined forces with David Clark, the world's leading authority on Warren Buffett's investment methods, to create an in-depth, step-by-step guide to the concepts and equations Warren Buffett uses to create fantastic wealth.
Here you will learn:
  • The difference between a great company and a great undervalued company
  • How the short-sightedness of Wall Street pundits can work to your advantage
  • Where to look for investments with long-term, consistent, and extraordinary growth potential
  • To perform the same financial calculations Buffett uses, and apply them to stocks you'd like to buy
For those of you that are time-pressed, this is the best book in the Buffettology Series to read in order to glean a few secrets on the investment techniques of the Oracle of Omaha. The workbook covers both the qualitative and quantitative sides of Buffett's value investing approach, and provides the basic techniques one can implement in order to invest with a reasonable amount of success.

The workbook is not exactly the best book on investing that I have read (that title goes to Benjamin Graham's The Intelligent Investor), but in its defense, it does provide a simple to implement investment strategy. Most of the techniques hinge on a few simple ratios and knowledge of simple present and future worth. Additionally, most of the limitations associated with the techniques are clearly and simply stated.

The book has several merits. The chief merit of the book is that its approach to investing is self-contained, and emphasizes the qualitative aspects more than the quantitative aspects. In passing, readers that focus more on Part One of the book and skip Part Two, the quantitative part, could easily obtain a dramatic improvement in their investment results. Written in simple, easy to understand language, the target audience of this book is most likely that individual who depends on the Internet for all of her information on companies, as such sites as Yahoo, MSN and Value Line are routinely cited in the text as sources of information. The book is very well organized, quite possibly with the idea that it would fit the mold of a chapter-a-day format. Most chapters are usually no more than five pages long, with easy, cheesy word problems and true/false questions at the end of most every chapter to reinforce key concepts. The title of each chapter basically states the key concept to be learned, and key points are highlighted at the end of each chapter. Although it provides some theory and rationale for the techniques it attempts to teach, this is kept to a minimum, and the book focuses almost exclusively on application of the techniques. Those readers that are only interested in the methodology can simply skip to the 22nd Chapter titled 'Doing It Yourself: Buffettology Worksheet'. Thus, the book makes every effort to make learning, and ultimately using, the techniques as painless as possible.

The major demerit of this book rests in its insistence on doing all calculations on a per-share basis. But then, this is how much of the information that is easily obtainable through such channels as Value Line and other sources is presented. One minor demerit is that the authors do not seem to be aware of the virtual ubiquity of MS Office, making it possible to perform all of the calculations in the book in one Excel spreadsheet, but then again, this is a minor demerit. Although there were a number of minor typographical and mathematical errors in the book, I am willing to overlook this, as the thinking and reasoning behind any investment proposition is more important, and is clearly presented throughout the book.

Overall, I rate the book to be worthy of reading. It presents a simple and straightforward investment approach, and does not require an advanced degree in rocket science to implement it. All it really requires is a basic understanding of fractions, decimals and percents, and most important, a willingness to think and reason through the investment proposition. However, those of you with strong quantitative backgrounds will be very dismayed with this book (as I was initially), but as I said before, if you focus exclusively on Part One of the book and Chapter 22, then you will see a dramatic improvement in your investment results going forward.

- mavis_garcia

The Buffettology Workbook provides a basic foundation in Warren Buffet's approach to value investing. The Oracle of Omaha did not contribute directly to this work, but one of the author's was married to Buffet's son for a time. The work is interesting in two respects. It does provide some detailed examples of the analyses that Buffet uses to help him sort winning stocks from losers. And there are several entertaining examples of companies that the book suggests are "winners" for all eternity that we now know are losers. This confirms the suspicion that all the mathematical analysis is beside the point and that Warren has some deeper insight into the value of long term investments that cannot be captured by routine math. An interesting read for value investors who want to test their approach against the master.

- emerald_ward

I am writing this review to let everybody know how great this book has changed my way of doing business. If you are an investment broker our student studying to be a business manager, I would highly recommend reading this workbook, and practicing every aspect of what it has to offer.

I am currently studying to be a business management with an concentration in human resources. Though this workbook is designed for investment strategies within the Warren Buffett management style, it still gives you a great cornerstone to build your foundation and strengths regarding management.

- alessia_harris

The simplest and best book ever written for investing. Follow these simple directions in this book and over time you cant lose with your investments. To sum up the book in less then a paragraph. Buy good companies that have an identifiable monopoly, have ton of cash in the bank, very little debt, then NEVER sell these companies. You cant fail over time.

- annika_garcia

If anyone is interested in learning how to invest in the stock market this is the book for you. Not only does it tell you how to find the right companies to invest in, it also shows you how to analyze them to see if they are a good deal. The book is an "easy read". No serious investor should be with out this book in their library.

- sylvia_mendoza

Thank you.

- grant_bailey

Very good book. Now it's up to me to use it.

- aubrey_walker

If you want to retire before you reach the official retirement age start saving now, buy stocks and shares in the type of companies it suggests and you will probably be able to. There are no guarantees in life but Warren Buffett has done well financially and copying what he has done seems to me to be rather a good idea.

- ezequiel_green

If you want some great insight and amazing tips on how to work on your investments this is a great book- it's also really easy to understand as the language used isn't too technical.

- jayde_hall

No comments necessary. Clear, succinct, to the point and very easy to understand and use.

- talon_turner

This is a good book and a very interesting read if you are into that sort of thing. You never know pick up some tips and you could be the next Warren.

- esteban_ramirez

Simply Awesome. Security Analysis explained in simple language.

- kaison_cox

Scritto da una ex moglie del figlio di di Warren Buffett, quello diventato famoso per le colonne sonore e gli spettacoli musicali... L'autrice si fregia del cognome per vendere un libro del cui argomento sembra molto difficile conosca in modo approfondito. Tra l'altro Warren Buffett non ha mai riconosciuto il libro, anzi ha sempre tenuto a distanza chi utilizzava il suo cognome per trarne un vantaggio immeritato (come è riportato salla biografia autorizzata the Snowball)
Consiglio si leggere Security Analisys di Graham e Dodds e magari le lettere agli azionisti dello stesso Buffett invece di perdere tempo con questo testo.

- jasiah_hughes

Investing in shares is easy but difficult. We lack patience. Everyday we check if the stock price has gone up. If the strategies explained in the book are applied seriously, then we too can become millionaires if not billionaires.
I have taken a leaf from the book and have got cracking on the path to become a successful investor.

- jose_watson

a must for investors

- ignacio_turner

Good book..

- brynn_sanders

Doesn't explain much.

- magdalena_diaz

Again, following the transition forward. Well done.

- quincy_garcia

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