It's a great book on value investing, but not only in "monetary" terms, but also in "human" terms. I've been investing in the US and Mexican market for about 12 years, and always used the value approach, not the techinal one. After reading this book, my ideas of value investing where reinforced, and I gained more ideas: buy a company (or shares) because of the value of the company, not the price movement of the share; when buying, not only look at the monetary value but also look for quality and integrity on the managment team. I recommend this book to anyone interested in the stock market, but investors and speculators. In this book I also learned about Phill Fisher and Benjamin Graham, two other masters in value investing. I recommend this book A LOT!
I read this book as a fledgling value investor along with dozens of other value investment tomes. I found this book to be the most easily understandable breakdown of Warren Buffett's investment principles. I still keep one of the pages of this book posted in my office because it reminds me on a daily basis of Warren's basic investment tenets. I would highly recommend it to anyone trying to decipher the oftentimes mystifying world of investing.
First read Christopher Brown's "Little Book of Value Investing" and then Joel Greenblatt's "Little Book that Beats the Market" which serve as even more basic introductions to value investing. After these three reads you can work your way up to Greenblatt's "You can be a stock market genius". Then you'll be well on your way to understanding the bedrock principles that made men like Warren Buffett, Sir John Templeton and Joel Greenblatt the legends they ultimately became.
An excellent, nuts and bolts discussion of Warren Buffett's investment thesis and strategy. After about a 75 page background on Buffett, Berkshire and the Buffett history and mystique, Hagstrom dives into the investment philosophy. He manages to distill the Buffett approach into ten tenets:
*Is the business understandable?
*Does the business have a consistient operating history?
*Does the business have favorable long term prospects?
*Is management rational in capital allocation?
*Is management candid with shareholders?
*Does management resist the institutional imperative?
*You need to focus on return on equity, not earnings per share.
*Calculate "owner earnings" to get a true reflection of value.
*Look for companies with high profit margins.
*For every dollar retained, make sure the market value increases by at least one dollar.
*Understand what is the value of the business?
*Can the business be purchased at a significant discount to value?
He then analyzes many Berkshire investments looking at these ten tenets. Once you have read the book, you will have a better understanding through Hagstrom's thorough examples of how to apply these tenets to an investment. A good, practical and not too wonkish book.
This was one of the best books on investing I have ever read! It gives you deep insight into the Warren Buffett way. Hagstrom covers all the necessary aspects to achieve similar success like Buffett that you can apply immediately to your own portfolio. GREAT BOOK!
It's not that this book isn't well written. It is factual and has much historical information. It thoroughly explains the early influences on Warren Buffet and how he has modified his approach over the years. After reading it, I'm not sure I really understand HOW WB decided to bet the farm on Coke or Washington Post, only that he did so. Perhaps it's too much to expect that I can read the book and become a genius investor or even understand how WB did.
I'm not an expert in economics and finance at all. However, the author explains difficult terms very easily and provides the reader with interesting examples and curiosities about the professional life of Warren Buffet. Specially interesting the explanation of the intellectual framework of Warren Buffet, that is, from which authors and ideas he developed his financial strategies. I haven't finished the book yet, but what I've read so far (more than a half) really worths the money it costs. You will learn very interesting issues that I think you'll be able to apply to your financial needs, like the tenets on which Buffet decide his investments.
Two years ago, I started as a retail investor and tried gobbledygooks theories--aka those very partial to technical analysis to the extent that the company's intrinsic value and fundamentals are brushed aside--that prove to encourage highly-speculative attitude, a type of attitude that could erase one's funds. Feeling beaten down, I purchased every book with Warren Buffet's name, of course including this one.
The good thing about The Warren Buffett Way is the author tends to stay away from high falutin words that their understandable to anyone willing learn value investment. This is way different from the books I bought about technical analysis that included mathematical equations with some weird Greek letters.
This is an excellent look at the investment style of Warren Buffett. It is extremely well written and very clear, I'd even go so far to say that you don't need an in-depth knowledge of maths to understand the principles outlined in this book as they are explained so clearly, with many examples based on Buffetts own techniques and actual stock/business purchases. It has a slight biographical quality about it as well, which is great for that deeper understanding of Buffett and what has motivated and shaped his thinking. Of all the investment books i've read, this is one of the most accessible and useful. A great introduction to Buffett and value investing. Highly, highly recommended. If this piqued your interest try 'The Essays of Warren Buffett' by Lawrence Cunningham for some brilliant examples of Buffetts own clear and entertaining writing style and investment wisdom.
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bit of a repeat of buffetts focus investing book, in some chapters, but i got the book for pennies, so cant complain.
The book came on time and is in perfect condition. Definitely super worth it for the price I'm paying. Thank you!
Very good quality, arrived on time and well packed! the book is easy to read and describes how did Buffet came up with his methods and explains what were the reasons behind each of the investments he made.
Great Book from a great Human and down to earth Master Investor. Exactly waht you would expect of a financial genius
No rocket science because is no rocket business... A very useful guide to avoid all the misunderstanding and faits divers created by some.
I was hoping to have some insight into Warren Buffet method with this book, but it just contain the history of his accomplishment. A lot of this book give me a deja-vu feeling like I've read it somewhere else.
The book doesn't feel very organize and it looks like it was put together by cut-and-paste from a number of different articles.
Hagstrom points out who Buffett is, how he operates, and why he is successful. I enjoyed the book because I also study the stock market. Even though I did very well for myself and my customers during a thirty-five year career as a stock broker, I believe I could have done even better had I had this book in 1960.
This was a great book to read. I liked that it was written about Buffet, and not by Buffet. Doing this gave a bit more insight from an external perspective and also highlighted failures as well as successes. Good examples and great quotes throughout the book
This book is good for beginners. You can have the same information by just reading the Berkshire Hathaway annual reports. The autors good have gone deeper on value investing. Overall, it's a good read.