Mary Buffett (Warren Buffett's ex daughter-in-law) explains Warren Buffett's method for value investing. Simple theory but a little more complex to put into practice. The book is full of helpful formulas. A must read for those managing their own portfolios!
Some basic concepts on how Buffet does what he does in a strange family member telling you a story kind of way. Buys companies below it's value, holds forever, spends little, always looks for opportunities. It's ok. You won't learn enough to actually do anything or be inspired for greatness.
If you are curious as to how the world's richest man did it, READ this book.
For all stock investors out there who are wondering how after giving away almost all of his wealth a few years back, Warren managed to overtake Bill gates as the man with the most wealth in this planet. That's quite a feat if you ask me! Well, don't ask me. Just read and learn my friend.
First I thought it was very basic but after reading it some concepts were interesting. Mainly the idea that diversification just hides your mediocrity as an investor and that you need to understand the business that you are investing in. The book is little old so I am not sure if the ideas would be exactly the same on todays markets. Made me think how much work and research you should do to invest in a stock.
The thing about reading an investing-oriented book 15 years after it was published is that you can judge the projections and assumptions made in the book. Buffetology was generally a decent book, but many of the suggestions and insights are overly simplistic and could have led to disasterous results over the last decade (suggesting investments in Bear Stearns and Freddie Mac). Additionally, I did not particularly care for the informal, peppy tone of the authors. I have the distinct feeling that the author got this book deal solely due to her former relationship to Mr. Buffet; the book sold well solely due to her continued use of her ex-husband's last name. I did find her methods of qualitatively evaluating the opportunity and her focus on the need for patience in investing quite good. You may not learn much of anything by reading this unless you have little knowledge of business, but it is somewhat entertaining.
1 — Only invest long-term in companies whose future earnings you can reasonably predict. The only way to do that is to truly understand the product. 2 — The company has to have excellent business economics working in its favor. Allowing the business to make lots of money that it is free to spend either by buying new businesses or improving its profitability. 3 — The company must have the presence of a consumer monopoly (more on that later) and management that functions with shareholders interests in mind. 4. — The price you pay will determine the return you can expect to get on your investment. The lower the price, the greater your return. 5. — Choose the type of business you would like to be in and then let the rate of the return determine your buying decision. 6. — Invest at the right price with exceptional economics working in your favor will produce, over the long-term, 15% or better. 7. — Find a way to acquire other people’s money to manage so you can profit from your investing “expertise”. (Investor discretion advised, you aren’t as educated as Warren Buffett)
Me gusta la manera en que tratan de hacer fácil de entender los números en diferentes escenarios tomando como referente transacciones en bolsa.
Todo el libro se centra en la formula del valor futuro financiero y sí que es acertado, las inversiones son fáciles de entender, hay que saber leerlas y considero que este libro, más que hablar de WB, logra esto.
Well, written, and everything makes sense. Great introduction to Buffettology for a novice. Do wish that this book can be updated with market players and stocks that play a dominant role in today’s market.