The Essential Buffett: Timeless Principles for the New Economy / Edition 1

The Essential Buffett: Timeless Principles for the New Economy / Edition 1

by Robert G. Hagstrom, Robert G. Hagstorm
     
 

ISBN-10: 047138979X

ISBN-13: 9780471389798

Pub. Date: 03/01/2001

Publisher: Wiley

For a while, with day traders and speculators driving the stock market to unprecedented heights—and redefining the concept of investing in real time—Warren Buffett’s measured, buy-and-hold value philosophy seemed as quaint as an old adding machine. Buffett himself lamented that his investors would have done just as well if he had gone to the

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Overview

For a while, with day traders and speculators driving the stock market to unprecedented heights—and redefining the concept of investing in real time—Warren Buffett’s measured, buy-and-hold value philosophy seemed as quaint as an old adding machine. Buffett himself lamented that his investors would have done just as well if he had gone to the movies instead of the office. But the madness is over. As the smoke clears Buffett’s timeless investment strategies are looking smarter than ever.

In this book, Robert G. Hagstrom helps you draw on the wisdom and counsel of Warren Buffett to succeed in today’s challenging market. Picking up where his previous bestselling books on Buffett—The Warren Buffett Way and The Warren Buffett Portfolio—left off, Hagstrom explains how Buffett analyzes companies and selects stocks. He then shows you how these techniques can be applied to technology, small-cap, and international stocks— areas Buffett traditionally has not explored.

Buffett built a multibillion-dollar business empire by confidently following a course that often put him at odds with Wall Street trends. The Essential Buffett outlines the core principles that you will want to incorporate into every stock decision you make:

  • Invest in a business, not a stock—you’ll look at a company’s economics as if you were taking over as CEO tomorrow
  • Demand a margin of safety for each purchase—how to keep risk at a minimum
  • Manage a focus portfolio—a comprehensive portfolio strategy, used with spectacular results by Buffett, which focuses the investment process on a few outstanding companies
  • And protect yourself from the speculative and emotional forces of the market—a lesson thousands of investors have now come to appreciate the hard way

The Essential Buffett shows you how Buffett’s framework can reliably guide your investments in today’s economy.

Investors today are bombarded with information. But understanding is still a scarce resource. To understand and practice the real rules of investing, you’ll find no better touchstone than the essential tenets developed by Warren Buffett and laid out in this book.

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Product Details

ISBN-13:
9780471389798
Publisher:
Wiley
Publication date:
03/01/2001
Pages:
304
Product dimensions:
6.32(w) x 9.61(h) x 1.07(d)

Table of Contents

1The Unreasonable Man1
Lesson 14
Lesson 27
A Better Yardstick10
Lesson 313
The Search for Patterns15
Why Has Wall Street Ignored Warren Buffett?17
A Different Way of Thinking18
2The World's Greatest Investor23
Investment Beginnings24
The Buffett Partnership, Ltd.25
The Early Days of Berkshire Hathaway26
The Insurance Business27
A Mosaic of Other Businesses33
The Man and His Company41
3Lessons From the Three Wise Men of Finance47
Benjamin Graham48
Philip Fisher61
Charlie Munger68
A Blending of Influences71
4Guidelines for Buying a Business: Twelve Immutable Tenets77
Business Tenets80
Management Tenets84
Financial Tenets94
Market Tenets101
The Coca-Cola Company106
The Intelligent Investor121
5Focus Investing: Theory and Mechanics123
Focus Investing: The Big Picture127
Do the Math132
Modern Portfolio Theory148
6Managing Your Portfolio: the Challenge of Focus Investing161
John Maynard Keynes163
Charles Munger Partnership166
Sequoia Fund168
Lou Simpson171
Three Thousand Focus Investors174
A Better Way to Measure Performance177
Two Good Reasons to Move Like a Sloth189
Fair Warning Label194
7The Emotional Side of Money197
The Temperament of a True Investor198
8New Opportunities, Timeless Principles217
Beyond Buffett218
Technology Stocks220
Smaller and Mid-Capitalization Stocks233
International Stocks240
Learning from the Best250
Notes253
Acknowledgments267
Index271

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