80% of the stuff in here I already knew, but the other 20% was very helpful in that it spurred some new thoughts on how to go about valuing and evaluating companies.
Everyone in America should read the first 190 pages of this book before they invest their first penny in stocks/mutual funds or consider contributing to a 401(k).
There are plenty of books about Warren Buffett available at any bookstore or library. What makes this one unique is that it is not written from the perspective of Warren Buffett's cult following. After her divorce with Warren Buffett's son, Mary Buffett capitalized on a rare opportunity to publish insider information about one of the richest people in the world and his investment strategies. Rather than quote Warren Buffett's shareholder letters to death like most authors, Mary sticks to the details of Warren's investments, how he made each choice and how it worked out. She provides a lot of quantitative data that is useful for reverse-engineering Warren Buffett's portfolio. Information from this book definitely helped me refine a few aspects of my investing philosophy and my screening process. Mary is concise and unemotional, making this a quick and productive read.
There are some good points in this book, like not forgetting about taxes and inflation, which most people do not consider in their calculations when determining if they made a profit. But there are also some misses. I read the dutch translation which was sloppy here and there and I don't know if the original has the same problems. The greatest flaw in my opinion was that some of the calculations are repeated a few times too many and also that the formula's aren't provided.
I liked it but would only recommend it to beginner-investors who want to get more serious about investing. The more serious investors should already know and do this stuff.
A very good review (although they graded it way to high in my opinion) can be read here: http://www.physics.ohio-state.edu/~pr... (warning, spoilers!)
In this case it might be helpful to know that I work at a stockmarket-helpdesk for independent investors of one of the biggest banks in The Netherlands.
I picked up this little book Buffettology last year in early 2016. At the time I had probably already passed the 30+ mark for the number of books I had read about value investing. Once you’ve read Hagstrom, Lowenstein, Graham, Greenblatt, Janet Lowe, Schroders, you pretty much know what that is all about.
I had also read by then a couple of other books from Mary Buffett (The Oracle’s ex-daughter in law, his son’s Peter ex-wife). She wrote several. This one will remind you, that when buying great businesses, it’s all about having a durable competitive advantage, a long product life ahead, with little change, little disruption probability, little capex requirement, so in other words tons of free cash flow. If you can buy this business when the price is fair or even better, when it’s cheap, then you never need to sell.
If you are a beginner that’s a great book but if you have read quite a bit already on value investing like I did, then that’s the usual stuff that you already know. Nevertheless, this book had some impact on me. Since it was written in 1999, already 18 years ago, it made me realize that on the topic of value investing, everything has already been written many times over and since many years already.
And yet, despite all the information available out there, the public keeps speculating, keeps falling into wall street’s marketing traps, and keeps ignoring the evidence that value investing works.
The expectation was quite high with this book. However the strategies are applicable only when the market is reacting to events expectedly or historically similar. Currently in 2021, the markets all over the world are liquidity driven, hence resulting in wild ride.
Intro to discounted price of future earnings. I've applied the formulas to several large cap stocks in a fantasy portfolio. My performance currently matches the S&P 500 pretty closely (including brokerage fees) but a lot of my success is due to one speculative stock that I could barely justify using the recommendations in this book.
Earnings are only part of the picture in stock valuation. There are million other Warren wannabes out there that also have a big say in what a stock is worth.
It was ok, I've already read previous investment books like the Intelligent Investor and thus I don't really feel like I learned anything new... It's probably great as your first investment book though.