With 118 ratings
By: Jeremy C. Miller, Tom Perkins, et al.
Purchased At: $29.99
Using the letters Warren Buffett wrote to his partners between 1956 and 1970, a veteran financial advisor presents the renowned guru's "ground rules" for investing - guidelines that remain startlingly relevant today.
In the 14 years between his time in New York with value-investing guru Benjamin Graham and his start as chairman of Berkshire Hathaway, Warren Buffett managed Buffett Partnership Limited, his first professional investing partnership. Over the course of that time - a period in which he experienced an unprecedented record of success - Buffett wrote semiannual letters to his small but growing group of partners, sharing his thoughts, approaches, and reflections.
Compiled for the first time, and with Buffett's permission, the letters spotlight his contrarian diversification strategy, his almost religious celebration of compounding interest, his preference for conservative rather than conventional decision making, and his goal and tactics for bettering market results by at least 10 percent annually. Demonstrating Buffett's intellectual rigor, they provide a framework to the craft of investing that had not existed before: Buffett built upon the quantitative contributions made by his famous teacher, Benjamin Graham, demonstrating how they could be applied and improved.
Jeremy Miller reveals how these letters offer us a rare look into Buffett's mind and offer accessible lessons in control and discipline - effective in bull and bear markets alike and in all types of investing climates - that are the bedrock of his success. Warren Buffett's Ground Rules paints a portrait of the sage as a young investor during a time when he developed the long-term value-oriented strategy that helped him build the foundation of his wealth - rules for success every investor needs today.
The discussion of Generals, Workouts & Controls offers a nice introduction to value investing.
The author walks you through how Buffett took what he learned under Ben Graham & put his own stamp on it.
You'll learn how he ran the Buffett Partnership & subsequently made the transition to more qualitative investments which formed the Berkshire Hathaway.of today.
I'd recommend reading Graham's "Intelligent Investor" & Phillip Fushers "Common Stocks & Uncommon Profits" 1st & although there's no heavy math, you should probably understand how to read a balance sheet & income/cash flow statements.
After "Ground Rules" I recommend reading the full prtnership letters & "Berkshire Letters to Shareholders" for a more fully formed view of what WEB has done, followed by Graham & Dodd "Security Analysis" after which you should be analytically & temperamentally able of trying your hand at creating your own Berkshire.
Disclaimer: the wit & wisdom WEB has exhibited throughout his carreer are replicable by many but the temperament needed to execute is IMHO the most important factor in obtaining above average results. If you ain't disciplined & patient, your results will vary...
My only criticism with the book is Jeremy Miller's editorializing which prefaces many of the letters. It doesn't add much to the content of Buffett's letters and tends to repeat what is in them. Other than that, the criteria that Buffett applied to his investment decision making process in these early years - buying only value, eschewing market fads and frothiness, being patient and utterly frank with his investors, and compounding returns - emerges very clearly from these pages. These criteria are timeless and yet always timely and they find their fullest endorsement in the long trajectory of Buffett's career.
The book covers Buffett's three primary modes of investing- Generals, Workouts and Controls. It details his well known approach of value investing- finding mismatches between a company's intrinsic value and its market price and waiting for them to coincide. It also goes over his theories for owning companies and working with different partners.
It is truly amazing to read about the scale of Buffett's success. Year after year of beating the general market and year after year of him stating he had gotten luckier than expected.
The early story of Buffett is also interesting because it covers his closing down of his fund. And it shows his genuine care for all his investors providing them with alternate investment options and making himself available for any questions they may have.
Not for nothing Warren Buffett is called the greatest investor who has walked on this planet so far.
Learn from Buffett and his strategies when he was small and hungry.
I could not finish it. I t was a cut and paste of some of Buffett's very old work, most of which we have all heard before.
I gave it an extra star out of respect for Mr. Buffett.