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The Warren Buffett Way: Investment Strategies of the World's Greatest Investor
"Simply the most important new stock book of the 1990s, to date. Buy it and read it." -Kenneth L. Fisher Forbes
The runaway bestseller-updated with new material included for the first time!
"The Warren Buffett Way outlines his career and presents examples of how his investment techniques and methods evolved and the important individuals in that process. It also details the key investment decisions that produced his unmatched record of performance." -from the Foreword by Peter S. Lynch Bestselling author, One Up on Wall Street and Beating the Street
". . . an extraordinarily useful account of the methods of an investor held by many to be the world's greatest." -The Wall Street Journal
"Robert Hagstrom presents an in-depth examination of Warren Buffett's strategies, and the 'how and why' behind his selection of each of the major securities that have contributed to his remarkable record of success. His 'homespun' wisdom and philosophy are also part of this comprehensive, interesting, and readable book." -John C. Bogle Chairman, The Vanguard Group
"It's first rate. Buffett gets a lot of attention for what he preaches, but nobody has described what he practices better than Hagstrom. Here is the lowdown on every major stock he ever bought and why he bought it. Fascinating. You could even try this at home." -John Rothchild Financial columnist Time magazine
The runaway bestseller-updated with new material included for the first time!
"The Warren Buffett Way outlines his career and presents examples of how his investment techniques and methods evolved and the important individuals in that process. It also details the key investment decisions that produced his unmatched record of performance." -from the Foreword by Peter S. Lynch Bestselling author, One Up on Wall Street and Beating the Street
". . . an extraordinarily useful account of the methods of an investor held by many to be the world's greatest." -The Wall Street Journal
"Robert Hagstrom presents an in-depth examination of Warren Buffett's strategies, and the 'how and why' behind his selection of each of the major securities that have contributed to his remarkable record of success. His 'homespun' wisdom and philosophy are also part of this comprehensive, interesting, and readable book." -John C. Bogle Chairman, The Vanguard Group
"It's first rate. Buffett gets a lot of attention for what he preaches, but nobody has described what he practices better than Hagstrom. Here is the lowdown on every major stock he ever bought and why he bought it. Fascinating. You could even try this at home." -John Rothchild Financial columnist Time magazine
336 pages, Mass Market Paperback
First published January 1, 2007
About the author
Robert G. Hagstrom
40 books119 followersRobert G. Hagstrom is Senior Vice President and Director of Legg Mason Focus Capital. He has authored the New York Times best-selling The Warren Buffett Way and The Warren Buffett Portfolio, as well as The Nascar Way. He lives with his family in Wayne, Pennsylvania.
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Displaying 1 - 30 of 474 reviews
July 29, 2023
This book was surprisingly one of the best books I have read on investing.
The four principle steps of Buffett’s investing process are are:
1. Turn off the stock market. Check in only to see if people are offering things at stupidly low prices. If you think the stock market is worth checking, you probably think it is smarter than you are. In that case, just give it your money (invest in SPY)
2. Don’t worry about the economy, because you can’t predict it. Only buy companies that will do pretty well regardless of the economy. If you are buying companies that will benefit off of the next economic event then you will have to constantly adjust your portfolio and probably miss out on possible returns. Inflation is all that matters
3. Buy a business, not a stock. To understand a business, run that business or at least try being in that business world (learn more about walking by walking than talking about walking)
Focus on circle of competence, easy to understand, and well managed businesses
4. Manage a portfolio of businesses. Can’t make hundreds of good decisions over a lifetime, can only make a dozen or so. So focus on making a few great decisions.
Goes through Fisher's and Graham's influence on Buffett. The first 5 chapters of this book are just great. Definitely worth reading especially once you've read Klarman, Marks, Graham, Dodd, etc.
The four principle steps of Buffett’s investing process are are:
1. Turn off the stock market. Check in only to see if people are offering things at stupidly low prices. If you think the stock market is worth checking, you probably think it is smarter than you are. In that case, just give it your money (invest in SPY)
2. Don’t worry about the economy, because you can’t predict it. Only buy companies that will do pretty well regardless of the economy. If you are buying companies that will benefit off of the next economic event then you will have to constantly adjust your portfolio and probably miss out on possible returns. Inflation is all that matters
3. Buy a business, not a stock. To understand a business, run that business or at least try being in that business world (learn more about walking by walking than talking about walking)
Focus on circle of competence, easy to understand, and well managed businesses
4. Manage a portfolio of businesses. Can’t make hundreds of good decisions over a lifetime, can only make a dozen or so. So focus on making a few great decisions.
Goes through Fisher's and Graham's influence on Buffett. The first 5 chapters of this book are just great. Definitely worth reading especially once you've read Klarman, Marks, Graham, Dodd, etc.
May 21, 2017
In the end, Buffett triumphed using the power of rational thinking and conservative investing principles. His foes perished by their own hands, victims of herd mentality and folly.
June 3, 2019
وارن بفت اشهر المستثمرين في العالم وثالث اغنى رجل في العالم .. بدأ حياته بلا ثروة وحصل على ثروته التي تقدر ب٨٠ مليار من تأسيس شركة بيركشاير هاثاواي للاستثمار، اي ان عمل هذه الشركة هو ان تدير اموال الاغنياء كي تزيدها وبالمقابل تحصل على عمولة.
يعني ان وارن بفت عاش حياته وهو يخاطر باموال الاخرين ليشتري بها اسهم الشركات الناجحة،كان هذا هو مربط الفرس، كيف احرز وارن بفت هذه الثقة الكبيرة بالاسهم التي اشتراها، نتيجة حياة من الاستثمار انه استمر دائما في صعود كبير ومتفوق كثيرا عن السوق، الى درجة انه جمع كل هذه الثروة، فماذا يا ترى فعل ؟؟
وارن بفت لا يحب الاستثمار في قطاع التكنولوجيا، هو يحب الشركات العريقة التي تقدم منتجا او خدمة سيرغب فيها الناس الان وفي المستقبل، شركات يمكن ان تفهم ببساطة كيف تجني النقود ولا توجد صعوبة في التنبؤ بمستقبلها، مثل شركة كوكاكولا التي تقدم مشروبات غازية سيرغب الجيل القادم في شربها ايضا، او شركة جيليت التي تصنع شفرات حلاقة سيبقى الاحتياج لها ، او بنك يحتوي على نظام جيد للخدمات المصرفية وهكذا، جدير بالذكر انه استثمر في امازون ايضا وهذه من الشركات التكنولوجية، ولكن ربما وجد في مستقبلها الشيء الكثير، فشركة ابل مثلا مصيرها ضبابي فربما تسقط مثلما تسقط نوكيا او غيرها، اما امازون فهي سوق كبيرة وان كانت الكترونية ففيها جانب غير تكنولوجي.
ولكن هل يضارب وارن بفت؟ لا هو يشتري ويحتفظ لسنوات او عشرات السنين، ولكنني عرفت حديثا انه يبيع ويجدد اسهمه من فترة لأخرى. واذا جئنا لقاعدته الذهبية فهي ان تشتري الاسهم حينما تسقط سقوطا مدويا ولكن بشرط ان تعرف ان هذه الشركة هي شركة جيدة بالفعل، وهذا هو الامر الصعب في الموضوع، ان شركة بفت توظف الكثير من الباحثين الذي يتابعون الشركات ويتقصون الكثير من خفاياها ليعرفوا اذا كانت تصلح للشراء ام لا، وتوجد طرق لدى بفت في الاستحواذ على الشركات فهو يحب ان يتملك الشركات كلها اذا استطاع وهو يقول ان وضع البيض في سلة واحدة احيانا يكون ممتازا ، تتنوع مجالات الاستثمار لديه في قطاعات متنوعة وهو يحب كثيرا مجال التأمين ومجال اعادة التأمين.
فماذا يا ترى نستفيده من الكتاب؟ ان الشركات التي ربح منها بفت الكثير او استحوذ على غالبية اسهمها قد صارت الان غالية كثيرا، فالشراء منها وان كان مربحا بعض الشيء ولكنه لن يكون ربحا خرافيا كالسابق فهذه الشركات وصلت للعالمية بالفعل وحققت اعلى التصنيفات ومن الطبيعي ان تسلك طريق الأفول الان، واما الشركات التي سوف تكون مربحة في المستقبل فنحن لن نعرف عنها ذلك الا بفهم كبير لاداء الشركة وهذا امر غاية في العسر، لم يبق سوى ان نقلد هذا المستثمر او ذاك ماذا اشترى هذه السنة
ولكن حتى الان تزاولني الشكوك كيف استطاع بفت جمع هذا المبلغ المقدر بالمليارات من عملية بطيئة هي الاستثمار في الاسهم ، فاسهم الشركات الناجحة التي امتلكها بفت تستطيع مضاعفة اموالها كل عدة سنوات .. فهذه المضاعفة في الارباح لا تأتي بهذه السرعة فكيف بدأ هذا الرجل بشيء بسيط وضاعفه الى هذا الحد واخ�� هامش ربح من عملائه ووصل الى هذا القدرالهائل من الثروة
يعني ان وارن بفت عاش حياته وهو يخاطر باموال الاخرين ليشتري بها اسهم الشركات الناجحة،كان هذا هو مربط الفرس، كيف احرز وارن بفت هذه الثقة الكبيرة بالاسهم التي اشتراها، نتيجة حياة من الاستثمار انه استمر دائما في صعود كبير ومتفوق كثيرا عن السوق، الى درجة انه جمع كل هذه الثروة، فماذا يا ترى فعل ؟؟
وارن بفت لا يحب الاستثمار في قطاع التكنولوجيا، هو يحب الشركات العريقة التي تقدم منتجا او خدمة سيرغب فيها الناس الان وفي المستقبل، شركات يمكن ان تفهم ببساطة كيف تجني النقود ولا توجد صعوبة في التنبؤ بمستقبلها، مثل شركة كوكاكولا التي تقدم مشروبات غازية سيرغب الجيل القادم في شربها ايضا، او شركة جيليت التي تصنع شفرات حلاقة سيبقى الاحتياج لها ، او بنك يحتوي على نظام جيد للخدمات المصرفية وهكذا، جدير بالذكر انه استثمر في امازون ايضا وهذه من الشركات التكنولوجية، ولكن ربما وجد في مستقبلها الشيء الكثير، فشركة ابل مثلا مصيرها ضبابي فربما تسقط مثلما تسقط نوكيا او غيرها، اما امازون فهي سوق كبيرة وان كانت الكترونية ففيها جانب غير تكنولوجي.
ولكن هل يضارب وارن بفت؟ لا هو يشتري ويحتفظ لسنوات او عشرات السنين، ولكنني عرفت حديثا انه يبيع ويجدد اسهمه من فترة لأخرى. واذا جئنا لقاعدته الذهبية فهي ان تشتري الاسهم حينما تسقط سقوطا مدويا ولكن بشرط ان تعرف ان هذه الشركة هي شركة جيدة بالفعل، وهذا هو الامر الصعب في الموضوع، ان شركة بفت توظف الكثير من الباحثين الذي يتابعون الشركات ويتقصون الكثير من خفاياها ليعرفوا اذا كانت تصلح للشراء ام لا، وتوجد طرق لدى بفت في الاستحواذ على الشركات فهو يحب ان يتملك الشركات كلها اذا استطاع وهو يقول ان وضع البيض في سلة واحدة احيانا يكون ممتازا ، تتنوع مجالات الاستثمار لديه في قطاعات متنوعة وهو يحب كثيرا مجال التأمين ومجال اعادة التأمين.
فماذا يا ترى نستفيده من الكتاب؟ ان الشركات التي ربح منها بفت الكثير او استحوذ على غالبية اسهمها قد صارت الان غالية كثيرا، فالشراء منها وان كان مربحا بعض الشيء ولكنه لن يكون ربحا خرافيا كالسابق فهذه الشركات وصلت للعالمية بالفعل وحققت اعلى التصنيفات ومن الطبيعي ان تسلك طريق الأفول الان، واما الشركات التي سوف تكون مربحة في المستقبل فنحن لن نعرف عنها ذلك الا بفهم كبير لاداء الشركة وهذا امر غاية في العسر، لم يبق سوى ان نقلد هذا المستثمر او ذاك ماذا اشترى هذه السنة
ولكن حتى الان تزاولني الشكوك كيف استطاع بفت جمع هذا المبلغ المقدر بالمليارات من عملية بطيئة هي الاستثمار في الاسهم ، فاسهم الشركات الناجحة التي امتلكها بفت تستطيع مضاعفة اموالها كل عدة سنوات .. فهذه المضاعفة في الارباح لا تأتي بهذه السرعة فكيف بدأ هذا الرجل بشيء بسيط وضاعفه الى هذا الحد واخ�� هامش ربح من عملائه ووصل الى هذا القدرالهائل من الثروة
October 5, 2009
Don't bother. I expected better from the practitioner who wrote this, Robert Hagstrom of Legg Mason Capital Management, but in its audio version it's dry, simplistic, and badly read by someone who gears his pace toward eighth graders. That's probably the best audience for this book. All others, especially anyone who has even a passing familiarity with Buffet, should skip this and read "The Essays of Warren Buffett" or Berkshire Hathaway's annual reports instead.
January 1, 2019
من دو سال پیش کتاب گلوله برفی را خواندم. فکر می کردم که ته وارن بافت را در اوردم. الان که هر روز کتاب می خوانم سبکم این است که نویسنده ها را دنبال کنم و سعی دارم همه ی کتاب های نویسنده های مورد نظرم رو بخوانم. ته اکثر کتابهایی که میخوانم مقصد کتاب بعدی هست که برای مطالعه به سمتش می روم. وارن بافت کسی هست که من دنبالش می کنم و بعد از خواندن این کتاب تصمیم گرفتم به صورت خیلی عمیق تری مطالعه اش کنم. وارن بافت، من ته تو را در می آورم :)
نه این که بگویم به اندازه ی او می توانیم پولدار بشویم یا حتی به عنوان یک سرمایه گذار شناخته شویم. فلسفه ی وارن برای من جذاب است. دنیایی که همیشه بین انتخاب کردن اهداف است. انتخابی که وارن می کند همیشه شامل چیزی است که در آن مرامی وجود دارد که رویکرد و نتیجه ی کار را هر روز بررسی نمی کند بلکه بلند مدت است و بازه های زمانی در آن سال ها و بلکه دهه ها هستند. دنیایی که شامل صبر، نظم و خویشتن داری در کاری است که به آن باور داریم. خود به عینه دیدم که نتوانستم آن را انجام دهم. تجربه کرده ام که بارها دوست داشتم اینگونه باشم ولی همیشه وسوسه شدم و کوتاه مدت را انتخاب کردم. واقعاً سخت است که بلند مدت را ببینیم. واقعاً سخت است که کوتاه مدت را انتخاب نکنیم.
نه این که بگویم به اندازه ی او می توانیم پولدار بشویم یا حتی به عنوان یک سرمایه گذار شناخته شویم. فلسفه ی وارن برای من جذاب است. دنیایی که همیشه بین انتخاب کردن اهداف است. انتخابی که وارن می کند همیشه شامل چیزی است که در آن مرامی وجود دارد که رویکرد و نتیجه ی کار را هر روز بررسی نمی کند بلکه بلند مدت است و بازه های زمانی در آن سال ها و بلکه دهه ها هستند. دنیایی که شامل صبر، نظم و خویشتن داری در کاری است که به آن باور داریم. خود به عینه دیدم که نتوانستم آن را انجام دهم. تجربه کرده ام که بارها دوست داشتم اینگونه باشم ولی همیشه وسوسه شدم و کوتاه مدت را انتخاب کردم. واقعاً سخت است که بلند مدت را ببینیم. واقعاً سخت است که کوتاه مدت را انتخاب نکنیم.
February 26, 2010
I am not an expert investment guy. I wanted to find out more who Warren Buffet is and I was not disappointed. Ultimately, Warren Buffett believes in research, research, research when BUYING a company. When you buy a stock, you are purchasing shares in a company. Therefore, know that company. He looks at everything from quality leadership, past and potential future earnings, and most importantly, he asks anyone who is purchasing stock - do you understand the company and what they do. If you don't, don't buy them. Lots of great nuggets in this book and I have a better understanding of Buffett and investing overall.
December 11, 2020
يعطي فكرة أوضح عن مفهوم الاستثمار بالاسهم ومعاينة الشركات وفق قواعد منهجية لمراجعة اذا ما كانت تستحق الاستثمار
February 28, 2023
كتاب بعنوان واضح ومضمون اوضح…
هذا الكتاب كنز استثماري لكل من اراد ان يسلك طريق الاستثمار طويل الأجل، كما سلكه بافيت وما زال.
هذا الكتاب هو طريقة وارن بافيت في الاستثمار على مدار ٦٠ عاماً
في بداية الكتاب يطرح الكاتب حياة بافيت منذ الطفولة وتعليمه، وعن اول استثمار فاشل فشل فيه مالياً واستفاد منه عملياً.
كان بافيت مزيج من ٣ مستثمرين اساطير وهم بنيامين جراهام وفيليب فيشر وتشارلي مانجر، فهؤلاء الثلاث تعرف عليهم بافيت وقرأهم عن قرب.
في احد الفصول المفضلة بالنسبة لي تحدث الكتاب عن المبادئ الاثنا عشر التي لا تتغير، وهي مبادئ الشركة- مبادئ الإدارة- المبادئ المالية- مبادئ السوق، وداخل كل مبدأ يوجد ٣ اسئلة، هذه المبادئ طرحها بافيت على نفسه قبل كل عملية استثمار قام بها.
ثم في الفصل التالي بعد ذكر وشرح المبادئ يستعين الكاتب بتسعة عمليات استثمارية قام بها وارن بافيت ويسقط المبادئ عليها، ويشرح كل عملية استثمار منذ دراسة الشركة إلى وضع اول دولار الى اخيراً جني الارباح💵💵
ليس أعظم من قراءة الكتاب إلا تطبيق طرق وارن بافيت🤍
March 22, 2020
A sort of guide/educational related book, explaning how Warren Buffet tackles the world of investing, the book is easy to read, and the information that it is providing is easy for the reader to absorb, I found this book increased my knowledge and very useful, decent book cover, no editorial issues, suitable for the self-investor, professional investor, economic students, this book will appeal to all age groups, and if you have an interest in the world of investing, this book should be one that you read. it is a strong platform/base from which to obtain further knowledge. I always believe that if you read a book for educational reasons, that you should only read the book of a person and take advice from a person (or people) that have walked the path that you wish to walk, which makes it easier to respect their education and advice. Good book, wish I had read it years earlier.
May 23, 2013
This was a decent overview of the author's thoughts on Buffett's career and processes, but it provided no real insight outside of analyzing his moves through well known quotes and anecdotes. The book is almost voyeuristic in that the author had no actual contact with Buffett or anyone in his circle, but was obsessed with every move he made, even admitting to having a dedicated file for newspaper clippings about Buffett. After the book was written, Buffett met the author; I bet Buffett had bodyguards to protect him from this adoring fan. In the end, the author admits that he tried to replicate Buffet's methodology and achieved limited success. He blames this on the changing market, which I get, but I felt like that was a bit of a cop out after 200+ pages of trying to prove that Buffett's approach was timeless.
November 18, 2013
Each edition of The Warren Buffett Way has been widely regarded as the authoritative guide to how Warren Buffett selects the businesses he buys.
It starts with a chapter on the people who taught Buffett how to think about investments, Benjamin Graham, Philip Fisher and Buffett’s business partner, Charlie Munger.
Hagstrom then outlines 12 immutable tenets for buying a business and gives examples from Berkshire Hathaway’s portfolio.
The remainder of the book explores the psychology of investing. Many people who seek to model Buffett’s strategies miss this critical part: when he buys a business or shares – the two are the same in his mind – he never plans to sell.
Part of the reason why the book is authoritative is that it’s comprehensive. Similar books I’ve read have skimmed over the ideas they present, leaving you feel like you’ve snacked rather than digested a full meal. Because you’ve eaten well, you put the book down knowing what actions you can take.
He tells readers that they won’t be Buffett, but they can use his investing approach to improve the performance of their investments. Hagstrom’s website reinforces your education.
VERDICT: Required reading for sharemarket investors of any level.
It starts with a chapter on the people who taught Buffett how to think about investments, Benjamin Graham, Philip Fisher and Buffett’s business partner, Charlie Munger.
Hagstrom then outlines 12 immutable tenets for buying a business and gives examples from Berkshire Hathaway’s portfolio.
The remainder of the book explores the psychology of investing. Many people who seek to model Buffett’s strategies miss this critical part: when he buys a business or shares – the two are the same in his mind – he never plans to sell.
Part of the reason why the book is authoritative is that it’s comprehensive. Similar books I’ve read have skimmed over the ideas they present, leaving you feel like you’ve snacked rather than digested a full meal. Because you’ve eaten well, you put the book down knowing what actions you can take.
He tells readers that they won’t be Buffett, but they can use his investing approach to improve the performance of their investments. Hagstrom’s website reinforces your education.
VERDICT: Required reading for sharemarket investors of any level.
June 30, 2020
In The Warren Buffett Way by Robert G. Hagstrom, the author tries to capture the Buffett investing style. He is successful to an extent. W. Buffett keeps evolving as an investor; it’s hard to capture his way of investing. But the basic principles always remain the same – what he learned from Ben Graham and later ‘quality with growth’ from Charlie Munger. These can be summed up as:
• Be willing to study and learn about your companies
• Disregard short-term changes in the market.
• An investor must be able to think independently
• Remember your circle of competence.
• Buffett embraces simplicity and avoids the complicated companies/situations
• Look for a stable company with good cash flows, a business which is simple to understand and has pricing power
• Buy a business, not a stock
• Look for honest and competent management
• Should have favorable long-term prospects
• Look for companies with high profit margins (which have moats)
• Can the business be purchased at a significant discount to its value (there are many ways to calculate value)
• Be willing to study and learn about your companies
• Disregard short-term changes in the market.
• An investor must be able to think independently
• Remember your circle of competence.
• Buffett embraces simplicity and avoids the complicated companies/situations
• Look for a stable company with good cash flows, a business which is simple to understand and has pricing power
• Buy a business, not a stock
• Look for honest and competent management
• Should have favorable long-term prospects
• Look for companies with high profit margins (which have moats)
• Can the business be purchased at a significant discount to its value (there are many ways to calculate value)
January 16, 2019
I can't believe I'm reading investment strategy books. Who am I anymore? This gets three stars for being rather interesting and mostly readable (as readable as a book that bandies about risk and pricing formulas and accounting numbers can be), but it's not quite as practically useful for the beginning investor. I still found it quite interesting to learn about Buffet's history and his major mentors, and I think this book might serve as a useful shortcut for me in summarizing and highlighting Buffet's annual reports. IF we ever actually start practicing any of this Value/Focus investing strategy stuff, I may come back to this one. I still feel a bit like a fish out of water here, but the more I read, the more intriguing/fascinating I find all this stuff to be.
February 14, 2022
• Değeri yüksek, fiyatı düşük hisse senetleri satın alın.
• Bilginiz ve ilginiz olan alanlarda yatırım yapın. Bilgi çemberinizin dışına çıkmayın.
• Şirketin üretim bandı kadar yönetim kısmı da önemli. İyi yöneticiler ve iyi bir yönetim kadrosu ve stratejisi olmayan şirketlere fiyatı düşük de olsa yatırım yapmayın.
• Sabırlı olun.
Artık kitabı satın alıp okumanıza gerek kalmadı. Rica ederim.
• Bilginiz ve ilginiz olan alanlarda yatırım yapın. Bilgi çemberinizin dışına çıkmayın.
• Şirketin üretim bandı kadar yönetim kısmı da önemli. İyi yöneticiler ve iyi bir yönetim kadrosu ve stratejisi olmayan şirketlere fiyatı düşük de olsa yatırım yapmayın.
• Sabırlı olun.
Artık kitabı satın alıp okumanıza gerek kalmadı. Rica ederim.
July 21, 2016
There is now way one could be another Warren Buffet. But reading this great book and learning at least part of it, can make us better investors and more cautious regarding the risks involved. A few interesting principles and lessons, and that is it. Worth reading, no doubt.
January 27, 2024
متعة وفائدة في عالم الاستثمار، وخاصة عالم وارن بافيت، الذي لا شك انه اعظم مستثمر في العالم.
الجميل ان الكاتب مُلم ومطّلع بشتّى الجوانب التي تخص استثمارات وارن بافيت، حتى ان وارن بافيت نفسه اعجب بالكتاب.
الكتاب مفيد لكل مستثمر سواء كان مبتدئ او متوسط او متقدم. مليء بالاساسيات والمبادئ الاستثمارية. والاجمل من ذلك يحتوي الكتاب على معلومات تاريخية عن شركات كبيرة جدا مثل كوكاكولا، ماذا كانت قبل وبعد استثمار او استحواذ وارن بافيت على هذه الشركات، وكيف استحوذ عليها.
الجميل ان الكاتب مُلم ومطّلع بشتّى الجوانب التي تخص استثمارات وارن بافيت، حتى ان وارن بافيت نفسه اعجب بالكتاب.
الكتاب مفيد لكل مستثمر سواء كان مبتدئ او متوسط او متقدم. مليء بالاساسيات والمبادئ الاستثمارية. والاجمل من ذلك يحتوي الكتاب على معلومات تاريخية عن شركات كبيرة جدا مثل كوكاكولا، ماذا كانت قبل وبعد استثمار او استحواذ وارن بافيت على هذه الشركات، وكيف استحوذ عليها.
September 18, 2011
يقدم الكتاب الطريقه الامثل للتعامل فى بورصات الأسهم وهى التى استطاع من خلالها وارن بافيت تحقيق ارباح قدرها 42 مليار دولار
ويمكن تلخيص تلك الطريق فى تحديد الشركات شديدة التميز ذات التاريخ الطويل فى تحقيق الارباح والتى تديرها ادارات قويه ومتميزه وانتظار تدهور اسعار اسهم تلك الشركات مع الهبوط الشديد فى الأسواق وعندئذ يتم شرائها ... ثم الانتظار لبضعة سنوات لحين ارتفاع البورصه وعندئذ يتم البيع وفى ذلك الحين تكون قيمة الاسهم تضاعفت عدة مرات
الكتاب جيد وانصح بقرائته لكل من يفكر فى التعامل فى بورصات الاسهم
من الجدير بالذكر ان وارن بافت هو صاحب اكبر ثروه تم تكوينها من البورصه عبر التاريخ
كتبت هذا التعليق بعد اطلاعى على الطبعه العربيه من الكتاب المسماه ( الاستثمار فى الاسهم على طريقة وورن بفت) ... من ترجمة مروان ابو جيب وهى الطبعه الأولى وصدرت عن مكتبة العبيكان فى عام 2007 ميلاديه
ويمكن تلخيص تلك الطريق فى تحديد الشركات شديدة التميز ذات التاريخ الطويل فى تحقيق الارباح والتى تديرها ادارات قويه ومتميزه وانتظار تدهور اسعار اسهم تلك الشركات مع الهبوط الشديد فى الأسواق وعندئذ يتم شرائها ... ثم الانتظار لبضعة سنوات لحين ارتفاع البورصه وعندئذ يتم البيع وفى ذلك الحين تكون قيمة الاسهم تضاعفت عدة مرات
الكتاب جيد وانصح بقرائته لكل من يفكر فى التعامل فى بورصات الاسهم
من الجدير بالذكر ان وارن بافت هو صاحب اكبر ثروه تم تكوينها من البورصه عبر التاريخ
كتبت هذا التعليق بعد اطلاعى على الطبعه العربيه من الكتاب المسماه ( الاستثمار فى الاسهم على طريقة وورن بفت) ... من ترجمة مروان ابو جيب وهى الطبعه الأولى وصدرت عن مكتبة العبيكان فى عام 2007 ميلاديه
Read
December 28, 2022I divide the book into four parts. The first part of the book (chapter 2) describes Buffett’s intellectual influences. The second part (chapter 3) is a series of miscellaneous reflections on inflation, portfolio management, macro forecasts, long-termism, etc. The third part (chapter 4) describes the principles of his investing philosophy. And the final part (chapters 5 and 7) describes his positions and evaluates them in light of the investing principles previously described. I skimmed chapters 1 and 8, and I skipped chapter 8 (on bonds). The essence of the book, I thought, was contained in chapter 5. If you have a background in accounting and finance, I would recommend only reading chapter 5; you’d still derive 80% of the benefit.
Investing Influences: Graham and Fisher
Buffett’s influences were Ben Graham and Phil Fisher. Graham is best known for systematizing value investing in his textbooks The Intelligent Investor and Security Analysis. In essence, Graham’s approach is to buy a business at a discount to its underlying value, which value investors call ‘intrinsic value,’ as opposed to its market price. (I will discuss valuation more below). There were several screening tools he used; here are three: Graham would screen for companies that (a) trade at﹤2/3 net asset value, (b) trade at a low P/E ratio, and (c) could earn 5x fixed charges. We see that Graham is a highly cautious investor, dealing in companies that trade at a discount to their liquidation value, which is a function of his family’s experience during the Great Depression. (The Einstein of Money is a good biography of Graham.)
Phil Fisher’s investing philosophy (encapsulated in his Common Stocks and Uncommon Profits), part of which Buffett began to emulate at the urging of Munger, places more emphasis on the qualitative analysis of a company, not just how cheap its stock trades: e.g., its R&D, industry dynamics, growth prospects, the acumen of management, merchandising expertise, etc. This is in contradistinction to Graham, who often referred to his companies as cigar butts, i.e., those only promising one last puff. Thus, we say that Fisher considered growth, whereas Graham was only concerned with value. I found Fisher’s emphasis on non-dilutive growth to be noteworthy. Growth is considered dilutive when the company resorts to issuing more equity to finance its operations, which dilutes EPS. Fisher looks for companies that can internally finance their growth; we’ll see that Buffett, too, looks for companies that use retained earnings to fund growth, pay dividends, repurchase shares, etc.
In sum, we see a focus on a company’s fundamentals; there is no weight given to technical analysis or macro forecasts, which diverges from Wall Street’s MO. Indeed, Buffett’s investing style is often described as contrarian. We also see consideration given to a company’s growth prospects, but that growth is purchased with a concern for value. We should also note that actively managing a portfolio—buying and selling stocks because they are mispriced—is highly at odds with the notion of market efficiency, which is treated as dogma in academia (except at Yale, apparently). The efficient market hypothesis (EMH) maintains that all value-relevant information is priced in, thus any future price movements are random, (i.e., they cannot be predicted by an analyst), so Buffett’s success is attributed to luck. (That’s all I will say here regarding the EMH; I plan to review a book on it in the future.)
Investing: Theory and Application
In this section, I will describe key aspects of Buffett’s company analysis. Hagstrom provides the following taxonomy (ch. 4), which I will use to frame this section. There are four dimensions to Buffett’s investing style: business, management, market, and financial.
Business
Buffett invests in companies that he understands—companies that fall within his circle of competence. They have favorable long-term economics, consistent operating history, and competitive advantage (or “moat”). To illustrate the last of these, Buffett distinguishes between two types of businesses: franchises and commodity businesses. A franchise offers a product that is differentiated from its competitors, thus it has pricing power and higher margins. Conversely, a commodity business offers a product that is non-differentiated, thus it must compete by lowering costs, which means lower margins. (Note that this is standard Porter analysis.) A franchise can increase prices without losing market share, which is advantageous during an inflationary environment. Commodity businesses’ profits are largely dependent on tight supply. Demand constant, an increase in supply reduces industry profits (see Capital Returns by Edward Chancellor). Whether a business is a franchise or a commodity business has implications for management. For instance, commodity businesses have lower margins, which reduces the margin of error for incompetent management.
Management
Management is evaluated on the basis of their behavior. Buffett looks for management that is rational, and candid, and seeks to maximize shareholder value. The following behavior aims to improve shareholder value: cost discipline (no extravagant corporate offices or jets—one CEO even made his execs share a secretary!); share buybacks (appropriately priced) and dividend increases; wise capital allocation decisions, such as sensibly priced M&As; willingness to divest from unprofitable segments, cut a bloated workforce; ability to identify profitable investment opportunities, increase margins, and deleverage. Of the aforesaid, the two that recur the most often through the case studies are economizing costs and share buybacks. (Note that share buybacks are more tax-efficient than returning earnings to shareholders via dividends, though management should not retire shares if they are overpriced.)
Market (or Valuation)
Buffett determines the intrinsic value of a business by discounting cash flow. To be precise, Buffett discounts owner’s earnings (earnings plus depreciation and amortization, less capex). This requires that one determine the appropriate discount rate and estimate future earnings growth. Hagstrom notes that though most academics advise adding a equity risk premium to the risk-free rate, Buffett simply uses the interest rate on a 30-year treasury bond for the discount rate. Estimating future cash flows is more difficult—as Yogi Berra said, or is said to have said, “It’s tough making predictions, especially about the future.” Nonetheless, Buffett uses his business acumen to project future earnings growth. This step is dependent on many company-specific variables, e.g., capital intensity, management, industry dynamics, macro factors, company life cycle, etc. For instance, Hagstrom notes that a two-stage discount model was appropriate to value Coke since there were two phases of compounding annual growth: 17.8% from 1981-88, 7.6% from 1988-92. In my view, forecasting future growth is the most difficult part of stock analysis, and it’s where Buffett’s genius is most conspicuous.
Financial
There are certain financial characteristics that Buffett screens for in a company. In no particular order: little to no debt, low capital intensity, high return on equity, and economic goodwill. Buffett distinguishes between accounting goodwill, which is amortized, and economic goodwill, which is not amortized. Examples of the latter include brand name, location, business connections, distribution systems, etc.—all of those intangibles that account for why the company trades above its book value. According to Hagstrom, Buffett is deterred by companies with a high ratio of fixed assets to sales, such companies are capital intensive and characterized by low margins; they can seldom afford to repurchase shares or increase dividends, and they underperform during inflationary periods due to rising capex.
Final Reflections
I’ve read biographies of Buffett, Munger, and Graham before; and I’ve read Fisher and a few books on value investing, but this book was the first time that I thoroughly studied Buffett’s investing philosophy. Hagstrom reinforced a few things from prior reads, namely, the importance of cost discipline and share buybacks—these demonstrate management’s commitment to shareholder value. In discussing Buffett’s Freddie Mac position, Hagstrom argued that the concern about the deterioration of underwriting standards in the mortgage industry was without foundation—a claim that didn't age well. But Buffett's suspicion that Freddie Mac was backed by government guarantee was correct. Indeed, the regulatory environment and the implicit guarantee constituted part of its competitive advantage.
Overall, I’m sympathetic to value investing—I have almost a puritanical disdain for speculative frenzies—but I’m less disposed to Buffett’s macro agnosticism. I’m cognizant of the hubris implied by the latter statement, and I know that hubris courts Nemesis, especially in the context of investing. But there are certain macro events that are too obvious to ignore, e.g., the 2020 monetary and fiscal stimulus → market mania → inflation → rate hikes → market crash. Someone will object that there was similar monetary and fiscal stimulus in 2008, but there was no inflation. But there were important differences that even I (three months into my grad program) noticed: (a) the fiscal stimulus went directly into the hands of consumers in 2020, whereas in 2008 it stayed in the banking system, which was reflected in Divisa aggregates; (b) in 2022, rent and debt moratoria improved consumers’ financial position, increasing inflationary pressure; (c) in 2022, supply shocks contributed to inflationary pressure; (d) in 2022, overgenerous unemployment resulted in a negative supply shock to the labor market, increasing inflationary pressure. None of this is to say, my God, that macro forecasting is easy. Only the obvious is easy; the rest is difficult! ;-)
Investing Influences: Graham and Fisher
Buffett’s influences were Ben Graham and Phil Fisher. Graham is best known for systematizing value investing in his textbooks The Intelligent Investor and Security Analysis. In essence, Graham’s approach is to buy a business at a discount to its underlying value, which value investors call ‘intrinsic value,’ as opposed to its market price. (I will discuss valuation more below). There were several screening tools he used; here are three: Graham would screen for companies that (a) trade at﹤2/3 net asset value, (b) trade at a low P/E ratio, and (c) could earn 5x fixed charges. We see that Graham is a highly cautious investor, dealing in companies that trade at a discount to their liquidation value, which is a function of his family’s experience during the Great Depression. (The Einstein of Money is a good biography of Graham.)
Phil Fisher’s investing philosophy (encapsulated in his Common Stocks and Uncommon Profits), part of which Buffett began to emulate at the urging of Munger, places more emphasis on the qualitative analysis of a company, not just how cheap its stock trades: e.g., its R&D, industry dynamics, growth prospects, the acumen of management, merchandising expertise, etc. This is in contradistinction to Graham, who often referred to his companies as cigar butts, i.e., those only promising one last puff. Thus, we say that Fisher considered growth, whereas Graham was only concerned with value. I found Fisher’s emphasis on non-dilutive growth to be noteworthy. Growth is considered dilutive when the company resorts to issuing more equity to finance its operations, which dilutes EPS. Fisher looks for companies that can internally finance their growth; we’ll see that Buffett, too, looks for companies that use retained earnings to fund growth, pay dividends, repurchase shares, etc.
In sum, we see a focus on a company’s fundamentals; there is no weight given to technical analysis or macro forecasts, which diverges from Wall Street’s MO. Indeed, Buffett’s investing style is often described as contrarian. We also see consideration given to a company’s growth prospects, but that growth is purchased with a concern for value. We should also note that actively managing a portfolio—buying and selling stocks because they are mispriced—is highly at odds with the notion of market efficiency, which is treated as dogma in academia (except at Yale, apparently). The efficient market hypothesis (EMH) maintains that all value-relevant information is priced in, thus any future price movements are random, (i.e., they cannot be predicted by an analyst), so Buffett’s success is attributed to luck. (That’s all I will say here regarding the EMH; I plan to review a book on it in the future.)
Investing: Theory and Application
In this section, I will describe key aspects of Buffett’s company analysis. Hagstrom provides the following taxonomy (ch. 4), which I will use to frame this section. There are four dimensions to Buffett’s investing style: business, management, market, and financial.
Business
Buffett invests in companies that he understands—companies that fall within his circle of competence. They have favorable long-term economics, consistent operating history, and competitive advantage (or “moat”). To illustrate the last of these, Buffett distinguishes between two types of businesses: franchises and commodity businesses. A franchise offers a product that is differentiated from its competitors, thus it has pricing power and higher margins. Conversely, a commodity business offers a product that is non-differentiated, thus it must compete by lowering costs, which means lower margins. (Note that this is standard Porter analysis.) A franchise can increase prices without losing market share, which is advantageous during an inflationary environment. Commodity businesses’ profits are largely dependent on tight supply. Demand constant, an increase in supply reduces industry profits (see Capital Returns by Edward Chancellor). Whether a business is a franchise or a commodity business has implications for management. For instance, commodity businesses have lower margins, which reduces the margin of error for incompetent management.
Management
Management is evaluated on the basis of their behavior. Buffett looks for management that is rational, and candid, and seeks to maximize shareholder value. The following behavior aims to improve shareholder value: cost discipline (no extravagant corporate offices or jets—one CEO even made his execs share a secretary!); share buybacks (appropriately priced) and dividend increases; wise capital allocation decisions, such as sensibly priced M&As; willingness to divest from unprofitable segments, cut a bloated workforce; ability to identify profitable investment opportunities, increase margins, and deleverage. Of the aforesaid, the two that recur the most often through the case studies are economizing costs and share buybacks. (Note that share buybacks are more tax-efficient than returning earnings to shareholders via dividends, though management should not retire shares if they are overpriced.)
Market (or Valuation)
Buffett determines the intrinsic value of a business by discounting cash flow. To be precise, Buffett discounts owner’s earnings (earnings plus depreciation and amortization, less capex). This requires that one determine the appropriate discount rate and estimate future earnings growth. Hagstrom notes that though most academics advise adding a equity risk premium to the risk-free rate, Buffett simply uses the interest rate on a 30-year treasury bond for the discount rate. Estimating future cash flows is more difficult—as Yogi Berra said, or is said to have said, “It’s tough making predictions, especially about the future.” Nonetheless, Buffett uses his business acumen to project future earnings growth. This step is dependent on many company-specific variables, e.g., capital intensity, management, industry dynamics, macro factors, company life cycle, etc. For instance, Hagstrom notes that a two-stage discount model was appropriate to value Coke since there were two phases of compounding annual growth: 17.8% from 1981-88, 7.6% from 1988-92. In my view, forecasting future growth is the most difficult part of stock analysis, and it’s where Buffett’s genius is most conspicuous.
Financial
There are certain financial characteristics that Buffett screens for in a company. In no particular order: little to no debt, low capital intensity, high return on equity, and economic goodwill. Buffett distinguishes between accounting goodwill, which is amortized, and economic goodwill, which is not amortized. Examples of the latter include brand name, location, business connections, distribution systems, etc.—all of those intangibles that account for why the company trades above its book value. According to Hagstrom, Buffett is deterred by companies with a high ratio of fixed assets to sales, such companies are capital intensive and characterized by low margins; they can seldom afford to repurchase shares or increase dividends, and they underperform during inflationary periods due to rising capex.
Final Reflections
I’ve read biographies of Buffett, Munger, and Graham before; and I’ve read Fisher and a few books on value investing, but this book was the first time that I thoroughly studied Buffett’s investing philosophy. Hagstrom reinforced a few things from prior reads, namely, the importance of cost discipline and share buybacks—these demonstrate management’s commitment to shareholder value. In discussing Buffett’s Freddie Mac position, Hagstrom argued that the concern about the deterioration of underwriting standards in the mortgage industry was without foundation—a claim that didn't age well. But Buffett's suspicion that Freddie Mac was backed by government guarantee was correct. Indeed, the regulatory environment and the implicit guarantee constituted part of its competitive advantage.
Overall, I’m sympathetic to value investing—I have almost a puritanical disdain for speculative frenzies—but I’m less disposed to Buffett’s macro agnosticism. I’m cognizant of the hubris implied by the latter statement, and I know that hubris courts Nemesis, especially in the context of investing. But there are certain macro events that are too obvious to ignore, e.g., the 2020 monetary and fiscal stimulus → market mania → inflation → rate hikes → market crash. Someone will object that there was similar monetary and fiscal stimulus in 2008, but there was no inflation. But there were important differences that even I (three months into my grad program) noticed: (a) the fiscal stimulus went directly into the hands of consumers in 2020, whereas in 2008 it stayed in the banking system, which was reflected in Divisa aggregates; (b) in 2022, rent and debt moratoria improved consumers’ financial position, increasing inflationary pressure; (c) in 2022, supply shocks contributed to inflationary pressure; (d) in 2022, overgenerous unemployment resulted in a negative supply shock to the labor market, increasing inflationary pressure. None of this is to say, my God, that macro forecasting is easy. Only the obvious is easy; the rest is difficult! ;-)
January 3, 2023
Il libro pecca di superficialità e mancanza di approfondimento tecnico, probabilmente per essere abbordabile ai più.
Integrato con le lettere annuali di Buffet agli azionisti della Berkshire può comunque consentire un primo approccio alla strategia di investimento di uno degli uomini più ricchi del mondo.
Integrato con le lettere annuali di Buffet agli azionisti della Berkshire può comunque consentire un primo approccio alla strategia di investimento di uno degli uomini più ricchi del mondo.
September 6, 2021
Bố cục cuốn sách hơi rối, bản dịch mình đọc thì dịch quá tệ.
Dù có hiểu nhưng không ai có thể đầu tư theo cách mà Buffet đã làm, nhưng cũng note lại kha khá kiến thức. Quan trọng nhất vẫn là đầu tư trong vòng tròn hiểu biết của mình, và dựa vào vòng trong hiểu biết, phân tích doanh nghiệp để xác định được các doanh nghiệp bị thị trường định giá thấp.
Dù có hiểu nhưng không ai có thể đầu tư theo cách mà Buffet đã làm, nhưng cũng note lại kha khá kiến thức. Quan trọng nhất vẫn là đầu tư trong vòng tròn hiểu biết của mình, và dựa vào vòng trong hiểu biết, phân tích doanh nghiệp để xác định được các doanh nghiệp bị thị trường định giá thấp.
April 14, 2018
Some basic guide lines from:
1. Benjamin Graham
- Investments must have a certain degree of safety for capitals and a reasonable return, otherwise it is speculation.
- Margin of safety: buy stock with lower market
price than the intrinsic value of the company and the price difference must be big enough
=> Buy companies with market cap lower than 2/3 the asset value or stocks with low P/E
- Market values stocks based on human greed and fear
2. Philip Fisher
- Companies have potentials over the average: growth of sales revenue and R&D investments (in similar field)
=> Analyze margin profits and cost management
- The quality of management board, characteristics of managment strategies
=> Understand companies from the inside and from every aspect and every rumor
=> Always make investments within the circle of your capability.
3. John Burr Williams
- DCF: discounted cash flow
=> Valuate a company true value based on the real future cash flow discounted to the present
4. Charlie Munger
- Some times have to pay more for more (over the book value which compromise Benjamin's analysis)
Basic principles
1. Business
- Business is easy enough to understand?
- Business history is reasonable?
- Business has long-term prospect?
2. Finance
- High ROE and low or no debt
- Owner earnings = net income + depreceation - average annual maintenance capex +/- non-cash charges +/- working capital changes
-> Calculate this figure form cash flow statement
- High Margin profits
3. Management
- Management is reasonable -> company capital distribution is reasonable -> affect stock price in future
- Management board is fair with shareholders -> integrity, honesty and treat companies as true owners
- Management board is persistent, and dare to resist trends from others
4. Intrinsic Value
- Use DCF to estimate the true value
-> Must know exactly the cash flow distribution of the company from now to a point in the future
-> Use a reasonable discount ratio
- Is the market price lower than the true value?
Portfolio managament
- Index Investing
- Active Investing
- Modern portfolio theory from Markowitz
-> Limit from 10 - 20 kinds of stocks
-> Be persistent and hold stocks for a long time
-> Be calm and control emotions before fluctuation from the market
1. Benjamin Graham
- Investments must have a certain degree of safety for capitals and a reasonable return, otherwise it is speculation.
- Margin of safety: buy stock with lower market
price than the intrinsic value of the company and the price difference must be big enough
=> Buy companies with market cap lower than 2/3 the asset value or stocks with low P/E
- Market values stocks based on human greed and fear
2. Philip Fisher
- Companies have potentials over the average: growth of sales revenue and R&D investments (in similar field)
=> Analyze margin profits and cost management
- The quality of management board, characteristics of managment strategies
=> Understand companies from the inside and from every aspect and every rumor
=> Always make investments within the circle of your capability.
3. John Burr Williams
- DCF: discounted cash flow
=> Valuate a company true value based on the real future cash flow discounted to the present
4. Charlie Munger
- Some times have to pay more for more (over the book value which compromise Benjamin's analysis)
Basic principles
1. Business
- Business is easy enough to understand?
- Business history is reasonable?
- Business has long-term prospect?
2. Finance
- High ROE and low or no debt
- Owner earnings = net income + depreceation - average annual maintenance capex +/- non-cash charges +/- working capital changes
-> Calculate this figure form cash flow statement
- High Margin profits
3. Management
- Management is reasonable -> company capital distribution is reasonable -> affect stock price in future
- Management board is fair with shareholders -> integrity, honesty and treat companies as true owners
- Management board is persistent, and dare to resist trends from others
4. Intrinsic Value
- Use DCF to estimate the true value
-> Must know exactly the cash flow distribution of the company from now to a point in the future
-> Use a reasonable discount ratio
- Is the market price lower than the true value?
Portfolio managament
- Index Investing
- Active Investing
- Modern portfolio theory from Markowitz
-> Limit from 10 - 20 kinds of stocks
-> Be persistent and hold stocks for a long time
-> Be calm and control emotions before fluctuation from the market
October 21, 2016
Robert Hagstrom is one of many authors hoping to make a few bucks by telling people how they can make their own millions investing like Warren Buffett. Hagstrom gives helpful details about how Buffett calculates owner's earnings, but otherwise he doesn't know much more than anyone else does about Buffett's specifics. Hagstrom outlines Buffett's basic tenets of investing, based on what he has read in the Berkshire Hathaway annual reports and a handful of other Buffett writings. This is an excellent outline of Buffett's fundamental principles of investing and how they were applied to various investments that Buffett made at Berkshire. The most interesting and useful part is Hagstrom's focus in the second half of the book on the focus portfolio. A study of 12,000 computer-generated portfolios showed that the number of stocks in a portfolio directly correlates to the portfolio's chance of beating the market. The small number of stocks in Buffett's portfolio may be the most important factor that allowed Buffett to outperform the market consistently for nearly 60 years.
November 19, 2019
A book on the investing philosophy of the world's greatest investor. The 12 commandments of Warren Buffet:
Business Tenets
1. Is the business simple and understandable?
2. Does the business have a consistent operating history?
3. Does the business have favorable long-term prospects?
Management Tenets
4. Is management rational?
5. Is management candid with its shareholders?
6. Does management resist the institutional imperative?
Financial Tenets
7. What is the return on equity?
8. What are the company's "owner earnings"?
9. What are the profit margins?
10. Has the company created at least one dollar of market value for every dollar retained?
Value Tenets
11. What is the value of the company?
12. Can it be purchased at a significant discount to its value?
Of particular interest to me was the chapter on the psychology of money and behavioral finance. The author lists down the many mind games at play like overconfidence, overreaction bias, loss aversion, mental accounting and risk tolerance.
Overall, a very entertaining and easy read.
Business Tenets
1. Is the business simple and understandable?
2. Does the business have a consistent operating history?
3. Does the business have favorable long-term prospects?
Management Tenets
4. Is management rational?
5. Is management candid with its shareholders?
6. Does management resist the institutional imperative?
Financial Tenets
7. What is the return on equity?
8. What are the company's "owner earnings"?
9. What are the profit margins?
10. Has the company created at least one dollar of market value for every dollar retained?
Value Tenets
11. What is the value of the company?
12. Can it be purchased at a significant discount to its value?
Of particular interest to me was the chapter on the psychology of money and behavioral finance. The author lists down the many mind games at play like overconfidence, overreaction bias, loss aversion, mental accounting and risk tolerance.
Overall, a very entertaining and easy read.
April 8, 2014
Fascinating.
Clearly, Robert G. Hagstrom Jr.has a great respect for his subject and well he might. Warren Buffett is a man focused on the job in hand that of making money from his investments. Over the decades Buffett has proved himself to be the world's shrewdest investor and has made himself and his fellow investors VERY rich. When Hagstrom lays out the process in this book it appears worryingly straightforward - find a quality brand with few competitors in an industry you understand, look at the return on capital then buy the shares and let the good management have the time to prove their worth. It is that simple and yet few of us ever achieve financial security. Why not ? Perhaps that is the next book waiting to be written ? Anyway, if you are looking for a fascinating insight into how the 'Old Man of Omaha' operates, this book is a pretty good start.
Clearly, Robert G. Hagstrom Jr.has a great respect for his subject and well he might. Warren Buffett is a man focused on the job in hand that of making money from his investments. Over the decades Buffett has proved himself to be the world's shrewdest investor and has made himself and his fellow investors VERY rich. When Hagstrom lays out the process in this book it appears worryingly straightforward - find a quality brand with few competitors in an industry you understand, look at the return on capital then buy the shares and let the good management have the time to prove their worth. It is that simple and yet few of us ever achieve financial security. Why not ? Perhaps that is the next book waiting to be written ? Anyway, if you are looking for a fascinating insight into how the 'Old Man of Omaha' operates, this book is a pretty good start.
April 12, 2014
Warren Buffet is an American hero in my opinion. Humble, down-home, ethical, charming and intensely brilliant. The book is part biographical; part descriptive of the Buffet investment philosophies. Since Warren Buffet invests in simple, easy-to-understand businesses, the description of the companies in his portfolios are pure "Americana". Robert Hagstrom did a fantastic job writing the book....well-written and totally engaging. I was not bored for a minute. I enthusiastically recommend, particularly if you are Warren Buffet fan.
June 21, 2008
Nick has been studying Warren Buffer by way of news articles and Berkshire's annual reports for many years. From these studies, the author has built what he thinks is the strategy that Warren uses to analyze and eventually purchase companies. The book explains how Buffet is part Ben Graham, part Philip Fisher and part Charlie Munger and explains how each of their theories has influenced Buffet's business purchasing techniques.
May 28, 2015
The Warren Buffett’s Way - You want to smarter investment? well, then do it the Warren Buffet’s way. Warren Buffett is a man focused on the job in hand that of making money from his investments. This book is a part biographical; part classifying of the Buffet investment philosophies. I was not bored even a single minute. This is a book you will want to listen to several times. Simple, classic and elegant and completely makes sense. I would give this book a 4 stars.
March 5, 2017
This book was fantastic. Not only did it teach readers some facts about investing and the history of several of the last century's successful investors, it also described the mindset that's so important to maintain as an investor. Understanding that mindset is almost more important than anything else. You're a business owner when you own shares in a company, therefore it's important to know the ins and outs of that company.
October 8, 2011
Took me two years to start reading this book, finally I read it at the same time I read a Damn right on the other person behind Warren Buffet "Damn Right" good book about how Buffet chooses a company to invest in
May 18, 2014
كتاب ممتع يغوص في عقلية بفت الاستثماريه ويستخلص منها الدرر والحكم
واقتبس منه لاتكن كأي أحد تعلم وأقرأ عن الآخرين وابدأ من حيث انتهوا وكن أنت نفسك :)
انصح به للمهتمين بسوق الأسهم والاستثمار وللمختصصين
واقتبس منه لاتكن كأي أحد تعلم وأقرأ عن الآخرين وابدأ من حيث انتهوا وكن أنت نفسك :)
انصح به للمهتمين بسوق الأسهم والاستثمار وللمختصصين
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