5 comments about How Buffett Does It (Mighty Manager).

1. This book emphasizes the value and critical importance of clear, independent thinking in investment. Although at times it was very repetitive, which is not a bad thing per se, the most important lesson of the book was this: many investment professionals would like you to believe that you know nothing and that they know everything, and therefore, you should let them do your thinking for you. This is not the path to superior results; it is the path to sorrow. In truth, you must acknowledge two things- first, that you do know something, and the value of what you know, and second, that there are things that you do not know, some of which are important and must be determined, and others are unimportant. Most of us spend too much time trying to uncover unimportant information, and too little time pursuing important information. Moreover, most of us fail to acknowledge what we know that is of value and put too much stock in what others know that is not of any value. This book, thankfully without any equations to get in the way of clear thinking, tells you most of what you need to know to invest with a reasonable degree of safety and success.
   
   Successful value investing deals with knowns. It accepts a certain level of uncertainty, but always proceeds from the facts. In contrast, growth investing deals in speculation- reasoning without a firm basis in fact. It tends to fall victim to the illusion of precision, egregious hyperbole and lovely fantasies (which later turn out to be beautiful lies in retrospect). In essence, this book hammers home the message that the value investor knows what she knows of importance and also knows what she does not know of importance. Everything else is useless. This perhaps explains why most successful value investors tend to be introverted bookworms (they like to read, they don't talk much and they are constantly observing everything).
   
   How Buffett Does It presents 24 short, concise lessons on how to think and reason through the investment process. Written in simple, straightforward language to facilitate understanding, the book imparts all the goodies and gems of Buffettology- or the study of the investment techniques of Warren Buffett.
   
   My only complaint about the book resides in Chapter 20, which imparts the often cited Buffett advice of being fearful when others are greedy and greedy when others are fearful. I have always felt that this advice needs modification- specifically to something like 'Be cautious when others are greedy and observant when others are fearful'. One needs to know why others are greedy or fearful, and although one can always keep a safe distance when others are greedy (due to their inherent predictability, since their behavior will be consistent with their greed), given that fearful people can be quite dangerous (due to their inherent unpredictability), it behooves one to keep one eye on the situation making others fearful, AND one eye on the fearful people.
   
   Without a doubt, this is the best of all the 'Buffett' books, and Mr. Pardoe has done some excellent work here. I highly recommend it to any aspiring value investor looking to invest with safety and success.



2. I'll be as short and succinct as possible. Fluff with little or no redeeming value.



3. Pardoe has written an easy-to-read book, split up into 24 short chapters. He gives us an insight into the investment method of Warren Buffett, without going into details. It seems that he really had to stretch himself to fill 24 chapters, as some thoughts are repeated in various chapters. "Don't follow the herd", "Practice independent thinking", "Buy when everybody else is selling" are covered in different chapters, although they cover the same thing. The main success factor of Warren Buffett, however, is touched upon only very briefly: Buy companies below their intrinsic value, in other words: Buy the 1-Dollar-bill for 40 cents.
   What is this intrinsic value? How do you determine it? How can Buffett forecast future cash flows more accurately than all the other highly paid wall street experts? This is what the reader would like to know!
   The reader is not interested in common sense statements like "Buy companies whose products are needed or desired and have no close substitute". Everybody will agree to that, but how do you find such a company before everybody else finds out, and the market cap reflects this potential?
   This is a major shortcoming of this book. However, since it is an easy-to-read book, it can be viewed as a good starter for the Buffet investment method, before the reader turns to more serious books like Benjamin Graham's "The Intelligent Investor".



4. Firs of all: this book will not make you rich. Nor will explain you a secret which will help you become rich.
   After all, it was not written by Warren Buffet himself - that should give you additional warning sign.
   This book explains some principles Buffet used in his way to the top, it explains differences between him and many others and many other things, but it doesn't bring any magic formula. Some things you will find in are useful, of course and in general it is worth reading, but in general nothing spectacular. It explains Buffet's general philosophy and strategy, but without some key things: how to find "gold share" and how will you know when you find it. Also, my opinion is that it's applicable to USA only, if you are in Europe - take care. Shares available in some smaller countries are not even close to ones you can buy in USA. But can still offer high revenues if you NOT follow some rules in this book.
   Anyway, I would recommend this book to anyone dealing with shares because it gives you some wider perspective and ideas you will not hear from your own broker, but still - use your own head.



5. An excellent primer on value investing. I never thought I would enjoy a book about investing as much I did this one. James Pardoe does an excellent job when he talks about the 24 simple investing strategies that has made Warren Buffett the second richest man in the world. This is not a how to book, but there is very good information in here that will put you on the right path to value investing. We all won't become a Warren Buffett but using these strategies will make you money and you can become your own financial advisor.
   
   Some so-called experts make the world of investing seem like rocket science and that is exactley what they want you to believe. Buffett's strategies are common sense and he has often said anyone with average intelligence can impliment them.
   
   However, as simple as they are, to become a good value investor you must do your homework, know the business you are going to buy and have the proper temperament. Buffett does not use any computer software to analyze a business, the only thing he uses a computer for is to play Bridge online with friends and family. However, he is an avid reader and this book tells you to do the same. Buffett reads six hours a day and the rest of the time he is thinking about what he just read. Before you buy a business you must read, read and read some more.

5 comments about The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy.

1. This book presents Buffet's and Hagstrom's portfolio allocation methods. I say Hagstrom's because I think that much of Buffet's allocation methodology remains between Buffet's ears -- and not that of Hagstrom the author. Also, I believe Buffet is more opportunistic; he acts decisively when opportunities present themselves.
   
   The author adds discussion of technology stocks, an anathema of Buffet's, and the obligatory discussion of complex adaptive networks which might not be Buffet thinking but more along the lines of Charles Munger, his cohort.
   
   Nevertheless, there are many interesting points in this book. I listened to the audio tapes and they excellent. I then took the book out from the library and liked the tapes more.
   
   The author covers several important topics, in a summarized way, but also in a very interesting way. One topic done well was thinking in terms of probabilities. Another was diversification: don't over-diversify.
   
   The author also quoted from several books outside of the financial area and have become intrigued with them. They were: Fire in the Mind (Johnson), Full House (Gould), Against the Gods (Bernstein).
   
   I think Hagstrom is a very good author but his works seem to lack the detail that I like to see. He's one that can pull the strands of many topics together but perhaps skates over their details. I would have liked more detail on subjective probabilities as applied to the stock market for example. More on how Bayes, etc.
   
   John Dunbar
   Sugar Land, TX



2. Go right to the heart of the matter with Graham and Dodd's "Security Analysis" if you want to know how Buffett started. Hagstrom's book is a poorly executed fifth grader's book report on the primary investing philosophy of Buffett. Don't waste your money here. You'll regret it. This doesn't even scratch the surface of relevant information.



3. I bought it, by the title mentioning W.B.
   Wasted money: Whenever it comes to the details, he refers to his other book "The W.B way" (which I do not have, amazon ratings are poor though). Nothing wrong with the contents, but nothing new either. Just read the Berkshire Hathaway Annual Letter to the Shareholders (free on the web), with more and actually useful info. This book has ZERO value after reading the Letters, and this book ALONE does not quite help you picking stocks (although makes a good point in favor of WB's way)



4. The book is short, but gives you a lot to think about. I was interested in it mainly because Munger and Buffett gave it a nod. Many of the concepts were enlightening, he presents some good empirical evidence to support his arguments, and he hits all of the main points of the focus investment strategy which Buffett uses. He could have gone into a little more detail in the mathematics section, where I found myself dissatisfied with his unnecessarily vague and subjective treatment of the core concepts of probability. I say unnecessarily because I realize the purpose of the book is to give investors a mental framework for successful investment, but he could have easily included some practical information for investors on how to actually implement these strategies. For instance, a short example of his own, describing in detail the use of expected value (a simple statistical measure he alludes to but never mentions), would have helped to remedy the situation. He actually shows a simplified form of the Kelly Criterion (where payout is fixed), but failed to also include the more useful formula, which would have better shown the critical link between payout odds and probability (which together make up expected value), and optimal betting size. Sometimes little things like this make all the difference in our understanding, but in certain instances in the book he presents them as isolated concepts, and the informed reader is left believing the author doesn't really have a strong grasp of what he is writing, or at least didn't do a very good job of connecting his ideas together. He leaves it up to you to do the work of integrating the ideas into one. Still, he gives you the basic models you need, and does do a really good job incorporating his interviews with Buffett, Munger, Ruane, etc. into the book. If you will take the time to investigate and fill in the details, his theories will solidify nicely into one very powerful model, and this book will have served its intended purpose well.



5. I wonder what the aim of this book really was... It appears the author was impressed with Buffett's use of probability theory and expectancies of outcome on investments, and he wanted to share it with the world. But it seems the author has written this book before he fully understood the concepts, because this book is little more than a ragtag of quotes. The book lacks detail and practical how-to guide-lines. It often tries to draw irrelevant analogies. And the writing style of this author is generally confusing, because he relies so heavily on quotes instead of making a coherent explanation of the concepts himself. I've given this book 3 stars because it does have some interesting points for further consideration for people already experienced in Value / Focus Investing.

5 comments about The Essential Buffett: Timeless Principles for the New Economy.

1. Robert Hagstorm re-states the great principles included in his outstanding book "The Warren Buffet Way", adding references to the new economy just in the last chapter with a few recommendations.

   I am a true believer in the doctrine taught in the three books by Hagstorm, and they opened a whole new field to me. But his first book remains the best. I put it in practice with excellent personal results so far.




2. Before I read the Essential Buffet I knew very little about Warren Buffett. I knew he was one of, if not the richest man in the world. I knew he made his fortune from the stock market, but that was basically all.
   I began the book with the hope of learning what set him apart from the thousands of other investors that don't even come close to his successes.
   The book begins with a general summery of what is to come. Then it gets into the details. You learn how his childhood shaped his decision making. Then it talks about his greatest influences Graham and Fischer. Then it talks about how he selects stocks.
   All of the skills you learn not only teach you why he was successful but also how you can be. The author uses simple analagies to explain complex ideas, which makes it an easier read.
   I recomend the book to those who are interested in the stock market, owning or managing a business or just in economics in general.



3. Hagstrom's The Essential Buffett is key to understanding successful investing strategies. However this very helpful book is not just about why Buffett makes his choices, but, how Buffett's thought process in deciding to pick a stock has come to be. Besides the genius of Buffett, the reader learns about stock market guru's Ben Graham, Philip Fisher and Berkshire Hathaway's vice-Chairman Charlie Munger. Hagstrom's examples of the companies Buffett has been with like: Net Jet, See's, Coca-Cola, Citigroup... teaches young investors Buffett's investment ideaology. Because Hagstrom uses assumptions and multiple mathematical examples to prove HIS own application of Buffett's investing style to tech stocks, The Essential Buffett is not a five star book.



4. Hagstrom has presented Buffett's philosophy that is understandable and correct. I intend to learn from Buffett's principles and to use them to my advantage, to make my billions.



5. Instead of calling this book "The Essential Buffett", Hagstrom should have called it "The Rehashed Buffett". I have read both of the author's previous books about Buffett, and they stand well on their own. This book, though, is just a cash grab. It is "essentially" just highlights from the other two books recycled into this "new" book.

   If you haven't read the first two books should you read this one? I don't know... but if you have read the first two, don't bother with this patch job.

5 comments about Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage.

1. This is not a book for those who are intimately familar with financial analysis. Rather, it's a great refresher or a book for a person who is beginning to understand financial statements. In general, business books are hard to read and this one makes it a bit easier to learn and understand the material.



2. As a person who is avidly interested in financial news and information, this book was already appealing to me. Is it for you? This is when the potential reader needs to be honest. I think this book is highly informative and Warren Buffett always provides some nugget or gem that I hadn't thought about before. That makes his books worth reading...for me.
   
   However, I'm not sure those who are already financially savvy or professional investors will find it equally worth reading. I'd STRONGLY suggest that anyone who wants to understand financial statements and get an insider's perspective on how to interpret them, a look beyond all those very confusing numbers that are sent out by companies....read this book.
   
   
   Of course, many people are terrified of investing - or even thinking about investing - during a shaky or scary economic cycle. I'd recommend reading this book, anyway, even if your comfort level is very, very low when it comes to investing. Think about what the Buffett point of view and how he finds viable companies with excellent potential.
   
   I've become more comfortable with investing simply by reading Buffett's works. I could definitely improve and I'm in awe of Buffett's talents but I'm grateful that he takes time to share with the rest of us.
   
   The title of the book really does indicate what is inside but NOT the style and wisdom of Buffett himself - that, too, is what sets this book apart, makes it more than just a "how to interpret financial statements" guidebook. Also, if you are a fan of Benjamin Graham, you'll want to read this.



3. Although I've never read one, I imagine that this book is something like a 'Dummies Guide' to understanding a company's quarterly or annual report. The authors take a hypothetical financial statement similar to those one regularly gets as a shareholder in a publicly traded company and then explain in simple terms what those numbers signify.
   This is done by taking each line item and describing what the number contains, why it is important, and how Mr. Buffett supposedly uses it to help him to identify a "Durable Competitive Advantage."
   The 'DCA' concept is remarkably simple and the authors do a good job of both conveying it to the reader, and pointing out its differences from mere value investing.
   Actually, the concept is so simple that the authors struggle to stretch their text out to book length, for this could as easily have been contained in a pamphlet. Instead the publisher has chosen to use wide spacing, margins and generous amounts of blank space to length to the book. I don't begrudge them this as a book is admittedly more impressive than a pamphlet.
   Although one really won't be able to read this book and then go out and do an informed analysis of any given company, the beauty of the book is that it does an excellent job of explaining the ledger-type relationships of the various checks and balances that are contained in a financial statement.
   This is a good first step for the novice to intermediate investor.



4. Excellent explanation and investor significance of line items for
   the 3 basic financial statements for valuing a business. These 3
   statements are of course used in accrual accounting and are:
   . Balance sheet, Income statement & Cash Flow statement
   Benjamin Graham's Financial Statements book which is an investment classic was used as a model.



5. Warren Buffet's performance over the course of his career has been simply incredible. At this late stage in the game, much is made of his unique prowess in extracting deals the ordinary investor could not possibly get.
   
   But what is frequently overlooked is that the man, with partner Charlie, spent decades doing a tough slog through fundamentals to research companies, industries and markets thoroughly to discover value. Finding value, they committed capital and waited, sometimes for years and years, for the payoff. The payoff nearly always came.
   
   As Mr. Buffett himself will tell you, however, this tough slog is nothing that any other ordinary investor cannot do. It takes discipline and patience. Buffett will direct you to Security Analysis and The Intelligent Investor by Graham. But this book will help too. Being able to read and interpret financial statements is your starting point in analyzing a firm, in the way that a doctor starts by taking your height, weight, temperature and blood pressure. It's fundamental - you cannot do solid fundamental analysis without the ability to sit down with financial statements and build a model in your mind of the company and its financial situation.
   
   For anyone hoping to emulate some measure of Buffett's success, this book should sit alongside the ones by Graham.

5 comments about The Warren Buffett CEO: Secrets From the Berkshire Hathaway Managers.

1. Robert Miles knows Warren Buffett, and it's clear that he also knows a thing or two about the people who run the companies in Buffett's Berkshire Hathaway. Armed with information gleaned from eight months of intensive interviews, Miles uncovers what makes a Berkshire manager tick, and covers the workings of Berkshire, itself, as well. Writing through the voices of the CEOs he portrays, Miles skillfully weaves the colorful histories of 18 firms into a revealing set of success stories. Many tales are similar - the CEOs love their companies; they worked hard to build solid businesses and no one regrets selling his firm to Berkshire. They all sound genuinely happier than you might possibly believe, and each chapter has business models you shouldn't miss. We invite any executive to enter these pages for an insider's view (still, it doesn't hurt to remember, they all knew Warren was gonna read it).



2. Thank goodness Berkshire Hathaway is populated by so much management talent. Even Robert Miles' mediocre writing and pedestrian insights can't obscure the real value of this book, which is to document, in a detailed and therefore fairly convincing way, Warren Buffett's exceptional ability to choose and motivate people.

   Buffett's techniques for dealing with people are well-known (he talks about them constantly) and this book has almost nothing really new to reveal, but Berkshire junkies will enjoy the anecdotes and facts that bring Buffett's concepts to life in a more concrete way. Even though many of the stories are recycled, hearing a few of the managers speak in their own words and tell their own versions is revealing. That Buffett himself made a kind remark about this book is unremarkable. What else could he possibly say about a book that features some of his key people? Bottom line: this is definitely a book for those already familiar with, and enthusiastic about, Buffett.

   Miles' publisher, Wylie, has created a virtual industry out of quickie trade books about Buffett. Wylie's new twist in this book is the Berkshire managers, who provide whatever shine it emits. But somewhere along the way, a mighty big assist must have been delivered on the editorial end to tone the writing style down into something publishable. How so? Miles himself comes across as one of the most self-aggrandizing, uber-promotional, un-Buffett-like people imaginable. That someone could write about Warren Buffett, with seemingly so little concept of what the man is about, is amazing. It wouldn't be the first time Buffett's name has been exploited by someone who barely knows him, but Miles takes exploitation to a whole new extreme. The Robert Miles web page, which reminds one of a three-card monte dealer or perhaps, one of the more gelatinous used car salesman types, speaks for itself. The headline, "You May Never Meet Warren Buffett, But Hear Robert P. Miles Speak and You'll Feel Like You Have" says it all. If you want to read a book about the value of humility by an author who has the nerve to compare himself to Warren Buffett, well, this is that book.




3. Robert Miles knows Warren Buffett, and it's clear that he also knows a thing or two about the people who run the companies in Buffett's Berkshire Hathaway. Armed with information gleaned from eight months of intensive interviews, Miles uncovers what makes a Berkshire manager tick, and covers the workings of Berkshire, itself, as well. Writing through the voices of the CEOs he portrays, Miles skillfully weaves the colorful histories of 18 firms into a revealing set of success stories. Many tales are similar - the CEOs love their companies; they worked hard to build solid businesses and no one regrets selling his firm to Berkshire. They all sound genuinely happier than you might possibly believe, and each chapter has business models you shouldn't miss. We invite any executive to enter these pages for an insider's view (still, it doesn't hurt to remember, they all knew Warren was gonna read it).



4. The book has a lot of interesting stories about managers at Berkshire Hathaway. It's not much about Warren Buffett. And it has nothing to do with investment.



5. Warren Buffett is the god of investors. Thus, there's a plethora of books about him and his investing methods. Reading anything Buffett says is good. My concern with these books is they become dated very fast. For example, right now, in mid 2007, Warren is buying up railroad stocks, specifically Burlington Northern. Yet we don't glean that from this book, because it went to print before Warren got into RR's.
   
   I've read most of the Buffett books and this one is above average. Recommended.
   Also, for those desiring to become rich, check out Tom Stanley's "The Millionaire Mind."The Millionaire Mind

5 comments about The Warren Buffett Way: Investment Strategies of the World's Greatest Investor.

1. This was my first introduction to Value Investing and I was intrigued by the clarity of Buffett's reasoning as expressed through the quotes in this book. However (!) now that I have digged deeper in the world of Value Investing, and have since revisited this book, I see that it is actually little more than a vague overview.
   
   My first problem with this book is that it doesn't tell you how to practice what it preaches. It doesn't tell you where to find the information you need, for instance what parts of the annual reports you should read, and how to interpret them. In a sense, the book assumes you already know what you're doing - but why then pick up this book?!
   
   Second, a most important aspect of Value Investing is that of valuation, naturally. That is, how much is a business really worth? Hagstrom quickly slings out a few calculations but does not properly explain the reasoning behind them. I have been trying to find good books on valuation but without luck so far. I would instead recommend the reader to do an internet search on this subject or a Wikipedia lookup for Discounted Cash Flow.
   
   I debated with myself whether to give this book fewer stars than the three I gave it. But there are some good points for further investigation, if you're already experienced in value investing. Just take this book with a grain of salt.



2. Hagstrom obtains permission to quote from Berkshire Hathaway reports and provides case studies of Buffet's major investments. His investment and acquistion strategies that have resulted in him winning the market time and time again are reviewed extensively. Buffett does not buy stocks, he buys companies. Not only that, he buys and holds. A good review of the influence of Buffett's mentors like Ben Graham and Philip Fisher is also undertaken. This is a must read for people looking to profit in the market.



3. It wasnt a bad book and it didnt waste my time. But I want more meat from the author. More specifics on what makes this man tick would be appreciated. Its not bad - read it if you want to begin a discussion on Buffett. Don't waste your time if you already know something about Buffett.



4. Amidst the current market chaos, this book is more relevant than ever. Robert Hagstrom offers a largely historical overview of Warren Buffets exploits in the market over the past several decades - both good and bad ones, attempting to explain the guiding principles for each investment.
   
   As you make your way through the book, it doesn't take long to grasp the recurring themes of value investing, good management, and competence in the area you invest in. The discussion on index, passive, and active investment strategies was especially interesting in the context of speculative vs. ownership viewpoints.
   
   I have to admit, I've stayed away from the stock market, largely due to my own general ignorance of all the variables - even though I've taken courses, read and listened to books on strategies and numerous case studies. At times I've wondered if I was just being too risk averse for my own good, but I'm glad I've not given in because what implicitly held be back is exactly what Warren Buffet warns against: speculative investment.
   
   Great read and highly recommended. I'm looking forward to learning more about Warren Buffet and Berkshire Hathaway.



5. Book review of The Warren Buffett Way
   
   As I have been exploring economics from a variety of perspectives, it seemed only natural to read a book about one of the greatest investors of our time. I was pleasantly surprised by this book to learn that investing well was a rational and intelligent process and not just random chance.
   
   Obviously, there are those who dispute that statement but I believe that the weight of Mr. Buffett's success is a powerful argument against them. I also believe that his value investing strategy is highly compatible with the Christian life. As his recent buying spree proves, value investing helps out companies, and consequently keeps thousands of people employed, when they are down and it punishes investors that artificially raise stock prices by selling companies that get too expensive. This process of buying at undervalued points and selling at overvalued points moderates the growth of a company, consequently reducing instability and maintaining a rational environment for the securities market. Given the recent market plummet, I'd rather let billionaires keep the market afloat than my tax dollars.
   
   reprinted with permission from: http://naturalfamilylife.blogspot.com

5 comments about The Best Investment Advice I Ever Received: Priceless Wisdom from Warren Buffett, Jim Cramer, Suze Orman, Steve Forbes, and Dozens of Other Top Financial Experts.

1. "Best Investment Advice I Ever Received" is a quick and easy read. It includes a lot of great advice offered by those who really know what they are talking about. Truly, these individuals have earned our respect. This is not a so-called great book. However, Liz Claman has put together a work that can be profitably read for five to ten minutes at a time. It easily deserves 4 3/4 stars out of 5.



2. I was moving cross-country and this was one of several audiobooks I purchased for the trip. I'm not a newbie to this material so perhaps that is why I almost drove myself into a ditch with boredom. Probably best for someone who doesnt read the WSJ or watch CNBC on a regular basis.



3. Dozens of authors means there is no developed coherent thought.
   
   You could read this and you might find a few gems, but you'd find more in other works. Benjamin Graham can give you better insight into value investing, John Bogle has the sell on index funds, William Bernstein will give you the low-down on asset allocation, and Jim Cramer will do a better job introducing you to market psychology and the business cycle.



4. This book provide many views on investments from many interesting people who are considered at the top of their games. It is an interesting read.



5. Whoa! How will last week's turmoil on Wall Street affect your organization and your team members? Here's a simple idea to bless your staff. Every morning around the coffee pot or the water cooler, hold a stand-up check-in meeting of no more than 10 minutes.
   
   After reviewing the day's priorities, read a page or a paragraph from this insightful book. Fast forward 10, 20 or 30 years. Many of your team members will be retired--if they have managed their investments prudently. Ask your staff how many hours they have invested in the last 12 months on learning about prudent money management practices?
   
   You can help them prepare for retirement by adding several financial planning books to your resource library, including this one. The subtitle reads, "Priceless Wisdom from Warren Buffett, Jim Cramer, Suze Orman, Steve Forbes, and Dozens of Other Top Financial Experts."
   
   With 20/20 hindsight almost a year after the publication of the paperback (November 2007), it's still revealing to read and discern the wisdom from these 65 business and financial experts.
   * "It is startling to know that a $23,000 investment at birth, invested at a 6 percent annual interest rate, would grow to $1,015,334.35 at age sixty-five." (Paul O'Neill)
   * "There was a wonderful money manager decades ago who said you should invest the way you play tennis. Unless you're a pro, just try to get the ball over the net. In investing, just try to get the ball over the net and let compounding interest do the rest." (Steve Forbes)
   * "His advice was remarkably simple: Save. Save a lot and save often. One of the unique characteristics of Americans is that we generally don't realize that savings and consumption are mutually exclusive. You simply can't do both." (Richard Bernstein)
   
   You'll find more wisdom in this quick-reading book. Buy it and your ROI could be stunning. It's a helpful resource to "The Budget Bucket," one of the 20 buckets in my book, Mastering The Management Buckets: 20 Critical Competencies for Leading Your Business or Non-profit.

5 comments about How to Pick Stocks Like Warren Buffett: Profiting from the Bargain Hunting Strategies of the World's Greatest Value Investor.

1. 1) The first quote on the back cover is from Mary Buffett. Mary's claim to fame is that she divorced Warren's son and then got into the investment book business. If you can't do that 'math' or you buy into the '*****' reviews for this book I've got a bridge I'd like to sell you. 2) Throw out the chapter on 'Warren on Arbitrage'. I've worked in equity arb. Most of this chapter is either outright false or highly misleading. 3) Entire sections of this book read as if they were excerpted from Hagstrom's or John Train's books. 4) The only reason I didn't give this book zero stars was it had some nice quips about value investing in general.



2. This is book says it about Buffet's way of picking stocks, but it is not. I'm sure Buffet would scream if he ever read this book. It not only isn't Buffet's strategy, it is bad advise too. Don't buy this book. If you've read it, disregard everything you learned before you lose money. Read Buffet or Graham and get it straight from the horse's mouth, and learn the intelligent way to pick stocks. This book stinks!



3. I am an avid reader of Warren Buffett's writings, and I believe that Warren Buffett would disagree with many items in this book. For example, Warren Buffett previously described his method of discounting companies in other articles, and it does not match the author's description.
   
   I can see how this book would be highly rated to someone not familiar with the details of Buffett's own articles and letters. But in my opinion, the book appears to only about 80% in agreement Buffett's previous writings. This book can give the reader a good overview of Warren Buffett's methods if they do not pay strict attention to the author's details.



4. A $10,000 investment in Warren Buffett's original 1956 portfolio would today be worth a staggering $250 million ... after taxes! What are his investing secrets?
   
   How To Pick Stocks Like Warren Buffett contains the answers, and shows, step by profitable step, how any investor can follow Buffett's path to consistently find bargains in all market conditions: up down, or sideways. Relatively short and easy to read, How to Pick Stocks Like Warren Buffett is an excellent introduction to the world of value investing.The book is relatively short and should provide a satisfying read.



5. I've read about 5 "Buffett" books and they ranged from utter garbage (the daughter-in-law books) to the mildly interesting. None really helped me invest better.
   
   This book is different. I've read it probably 10 times now. Every chapter can change they way you think about investing.
   
   The writing is clear and simple.
   
   What follows is a totally groundless statement - i have zero evidence of this - but... the only other writer I know who writes so clearly on investment is Buffett himself, which leads me to suspect he may have been involved in the writing of this book ...or maybe Buffet is the real writer. (apologies to mr vick - take my comment as a compliment if you really did write this)
   
   Even if Buffett isnt the real writer, my guess is that this is the book he would write.
   
   It's my favourite book on investment. I have five or so copies at any one time and hand them out to friends who ask me for investment advise.

5 comments about How to Think Like Benjamin Graham and Invest Like Warren Buffett.

1. Gives you insight into the two greatest investors of all time think and handle their investments.Financial Statement Analysis: A Practitioner's Guide, 3rd Edition



2. THE BOOK IS GREAT. THE SERVICE FROM AMAZON WAS BAD. PAID EXTRA TO EXPRESS SHIP AND IT ENDED UP TAKING 2.5 WEEKS AND AMAZON DUMPED THEIR RESPONSIBILITY ON ME TO WORK WITH UPS. WISH I HAD GONE TO THE BOOK STORE.



3. One of the most interesting books I've ever read on investing. Easy to read and understand the principles and investemnt criteria using by an outstanding value investor : Warren Buffett...



4. The title is what lured me to start reading this book.
   Basically, the book is FULL of long difficult words and by no means conversational or "fun" to read. It requires the reader to concentrate intensely in the later chapters to understand the message. The book only briefly mentions a few select thoughts by Graham and Buffett and misses a lot of the important insights and timeless wisdom of both men.
   This book is more focused on the authors aspect of value investing and can be seen by his detailed (and unnecessary 20+ pages) of corporate governance and macro economics.
   
   I don't know whether he was trying to write a novel here with all sorts of metaphors, adjectives and 'colorful' descriptions which does not make sense when related to finance and investing.
   
   Better value investing books out there for sure.



5. The author pretends to sound sophisticated throughout the book. I was able to skip paragraphs and still get the main ideas. My middle finger to the author!

5 comments about The Buffettology Workbook: Value Investing The Warren Buffett Way.

1. Written by Mary Buffett, former daughter-in-law of Warren Buffett, and David Clark, a portfolio manager, "The Buffettology Workbook" is the best investment I've ever made. The financial formulas you'll find in this book are all the ones they should teach in business school, but don't.

   The book is broken down into 23 chapters, each no more than a few pages, so you can read a chapter a day (and continue to review the chapters for the rest of your investing career). The first seven chapters give a breakdown of Warren's investment philosophy, value investing. Here, you learn about the short-sightedness of the market and the bad news phenomenon. Also, the authors identify the difference between commodity-type businesses and consumer monopolies, and tell you why it's far better to own consumer monopolies. Once you understand these concepts, you're halfway toward success as an investor. Now, you need to learn how to identify the correct buying opportunity. That's where the true value of this book comes into play, offering formulas and equations you won't find most books.

   The remaining chapters in the book focus on the examination of financial statements, the acquisition of pertinent information (what's important and what's not), then they tell you how determine an investment's desirability. You'll learn the value of high rates of return on shareholder equity, how to measure management's ability to utilize retained earnings, and Warren's ideas for the Internet and short-term arbitrage commitments.

   I read this book beginning to end the day I got it, but I'll continue to familiarize myself with its formulas for the rest of my investing career. Although it marks only the beginning of one's investment knowledge, learning these bedrock principles are what separate successful investors from mere average ones... Buy this book!

   Britt Gillette
   Author of "Conquest of Paradise: An End-Times Nano-Thriller"




2. This is one of the worst investing books I have ever seen. Not only does it have absolutely nothing to do with the way Warren Buffett actually invests, it completely makes up investing methods.

   For instance, the book talks about discounting future streams of income. The Oracle of Omaha was quoted at a Berkshire Hathaway meeting as saying he NEVER uses discount future cash flow.

   Even worse, this book promotes "book value growth" as a method for evaluating a stock's worth. Book value is an accounting term representing the net equity for a firm on ONE PARTICULAR DAY IN TIME. Change the date of the balance sheet and the value calculated by book value growth may change dramatically.

   If you want to invest like Warren Buffett, check out The Intelligent Investor by Benjamin Graham.




3. This is a good book and it is an even better book if it is used with their other book entitled The New Buffettology - which is better than the first edition entitled just Buffettology. In regard to the reader from TX Buffett uses growth of book value to determine the relative performance of Berkshire Hathaway - just check out the annual report. And Buffett is on record saying that a company is worth its future income stream discounted to present value - though Charlie Munger and I have never seen him do it. This was brought up at the 2001 Berkshire annual meeting. As far Ben Graham is concern Buffett and Munger are both on record saying that they no longer use the Graham's method - still worth the read though. Tim Vick, who wrote "Wall Street on Sale", loves the Buffettology series so much he wrote the cover recommendation. Check it out! And get on the program! You won't be sorry you did!!!



4. For those of you that are time-pressed, this is the best book in the Buffettology Series to read in order to glean a few secrets on the investment techniques of the Oracle of Omaha. The workbook covers both the qualitative and quantitative sides of Buffett's value investing approach, and provides the basic techniques one can implement in order to invest with a reasonable amount of success.
   
   The workbook is not exactly the best book on investing that I have read (that title goes to Benjamin Graham's The Intelligent Investor), but in its defense, it does provide a simple to implement investment strategy. Most of the techniques hinge on a few simple ratios and knowledge of simple present and future worth. Additionally, most of the limitations associated with the techniques are clearly and simply stated.
   
   The book has several merits. The chief merit of the book is that its approach to investing is self-contained, and emphasizes the qualitative aspects more than the quantitative aspects. In passing, readers that focus more on Part One of the book and skip Part Two, the quantitative part, could easily obtain a dramatic improvement in their investment results. Written in simple, easy to understand language, the target audience of this book is most likely that individual who depends on the Internet for all of her information on companies, as such sites as Yahoo, MSN and Value Line are routinely cited in the text as sources of information. The book is very well organized, quite possibly with the idea that it would fit the mold of a chapter-a-day format. Most chapters are usually no more than five pages long, with easy, cheesy word problems and true/false questions at the end of most every chapter to reinforce key concepts. The title of each chapter basically states the key concept to be learned, and key points are highlighted at the end of each chapter. Although it provides some theory and rationale for the techniques it attempts to teach, this is kept to a minimum, and the book focuses almost exclusively on application of the techniques. Those readers that are only interested in the methodology can simply skip to the 22nd Chapter titled 'Doing It Yourself: Buffettology Worksheet'. Thus, the book makes every effort to make learning, and ultimately using, the techniques as painless as possible.
   
   The major demerit of this book rests in its insistence on doing all calculations on a per-share basis. But then, this is how much of the information that is easily obtainable through such channels as Value Line and other sources is presented. One minor demerit is that the authors do not seem to be aware of the virtual ubiquity of MS Office, making it possible to perform all of the calculations in the book in one Excel spreadsheet, but then again, this is a minor demerit. Although there were a number of minor typographical and mathematical errors in the book, I am willing to overlook this, as the thinking and reasoning behind any investment proposition is more important, and is clearly presented throughout the book.
   
   Overall, I rate the book to be worthy of reading. It presents a simple and straightforward investment approach, and does not require an advanced degree in rocket science to implement it. All it really requires is a basic understanding of fractions, decimals and percents, and most important, a willingness to think and reason through the investment proposition. However, those of you with strong quantitative backgrounds will be very dismayed with this book (as I was initially), but as I said before, if you focus exclusively on Part One of the book and Chapter 22, then you will see a dramatic improvement in your investment results going forward.



5. Many books have been written about Warren Buffet's way of picking the right stocks at the right time, but the books of Mary Buffett and David Clark are the most sound, concise and actionable. There is another book by different author (by Robert G. Hagstrom) similar to Mary Buffett's writings: "The Warren Buffet Way", but it misses the important topics laid out in the Mary Buffett's publications. These major topics are: what are the differences between a "consumer monopoly" and a "commodity"; how to calculate the rate of return over a long period of time before choosing the investment; and so on. There is another great book about Warren Buffet and his investment strategy - "Buffet: The Making of an American Capitalist" by Roger Lowenstein, but it better describes Warren Buffet's biography and his relations with family, friends and the society, rather than how did he evaluate the companies. But please note that "Buffettology" is not a replacement of the book by Roger Lowenstein, I highly recommend reading both of them. What is you can omit is the book by Robert G. Hagstrom, above mentioned.
   
   I would recommend an abridged audio version of the Mary Buffett's work, instead of the printed book. The audio version discloses the most important factors of Warren Buffet's investment principles pretty well. Some of the background information is available on free letters to shareholders and Warren Buffet's lectures, but you might not want to crawl thought all these; you might want to save time and just listen or read the Mary Buffett's work, where all this information is perfectly summarized and laid out in a consistent way.