The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy

The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy

Posted by jack_miller | Published a year ago

With 37 ratings

By: Robert G. Hagstrom

Purchased At: $19.95

The Warren Buffett Way provided the first look into the strategies that the master uses to pick stocks. A New York Times bestseller, it is a valuable and practical primer on the principles behind the remarkable investment run of the famed oracle of Omaha. In this much-awaited companion to that book, author Robert Hagstrom takes the next logical step, revealing how to profitably manage stocks once you select them. THE WARREN BUFFETT PORTFOLIO will help you through the process of building a superior portfolio and managing the stocks going forward.

Building a concentrated portfolio is critical for investment success. THE WARREN BUFFETT PORTFOLIO introduces the next wave of investment strategy, called focus investing. A comprehensive investment strategy used with spectacular results by Buffett, focus investing directs investors to select a concentrated group of businesses by examining their management and financial positions as compared to their stock prices. A strategy that has historically outperformed the market, focus investing is based on the principle that a shareholder's return from owning a stock is ultimately determined by the economics of the underlying business.

Hagstrom explains in easy-to-understand terms exactly what focus investing is, how it works, and how it can be applied by any investor at any level of experience. He demonstrates how Buffett arranges his stocks in a focus portfolio and reveals why this is as responsible for his incredible returns as the individual stocks he picks. Ultimately, Hagstrom shows how to use this technique to build and manage a portfolio to achieve the best possible results.
We all know the brilliance of Warren Buffett and his snippets of wisdom, but this book goes further to give us clear insight into the Buffet way of investing. Using the KISS theory, Keep it Simple Stupid, we learn from Warren Buffett to step back, slow down, research, and pick companies for the long run. More is not better and picking only ten superstar companies at opportune prices for the long term can be the answer. No day trader tips here, think “invest for the long term.” The one quote I like the best, paraphrasing, was if your stocks are like having an NBA team and one of your players (stocks) is Michael Jordan, why would you think of selling him off so you could say you were more diversified. If you are interested in investing in individual stocks and are interested to hear about an alternative theory besides buying 60 percent mutual fund total stock market and 40 percent mutual fund total bond market, you will find this book informative and fascinating.

- salma_murphy

While a dated book , the sound investment advise of making a few good investment decisions during your life time is more important than reaching for the next invest idea of the moment. In these troubling times it is great to look at how the masters of investing have weathered previous storms. A lot of analysis on active management vs passive. Good input on how to avoid risk and maximize ones investment returns through Warrens look at company valuations and not the hype .

- daniela_myers

This is that rarity a useful practical, solid, smart investing book.. It does not fool around and from the begining till the end
it remains focused and very well structured.
I have read almost every book there is on WB and in my opinion this is one of the best.
It is a clever, understandable, practical guide through the core of Buffett's and even Charlie Munger's wisdom and investing philosophy. You really should not miss one if you are interested in Value Investing.

- alvin_williams

I have read several books on Buffett, Munger, and other investors. This book, more than the others, presents the thought processes Buffett goes through when qualitatively assessing people and companies. This book will not give you tidy formulas with which you can match Buffett's portfolio performance. It will give you help on developing a mental framework to understand what it is the legendary investor is looking for, and perhaps help you look at companies (not stocks) in a similar way.

- muhammad_rogers

Good read...

- kairi_cox

Good general principles, but not sufficient detail for action.

- kenley_diaz

Great Book ! Tells you how Warren Buffet and others used focus investing to achieve great returns. A good book about stock investing.

- blakely_edwards

nice book to know about how to manage your portfolio. importance for focus investing, less turnover etc are explained well. must read for all individual investors.

- tristan_lee

The author seems to use Mr. Buffett'S reputation to bring forward his own ideas. The author is a very good and respected investor. He should write based on his own experience. Noneless, the book is a good read for beginners in investing.

- bianca_howard

Highly educational anecdotes.

- baylor_evans

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