I read this for my class, and while it was insightful, it felt repetitive and boring. Maybe that's a sign I hate my major lol

In this book, Warren Buffett highlights many principles that successful businesses need to follow, such as a focus on value investing, attention to company management, attention to risk management, focus on long-term investments, and so on. These principles are very helpful for any entrepreneur or investor who wants to succeed

Wonderful and insightful read, full of Buffett’s wit and wisdoms. The latest edition includes the most recent letters.

This is an excellent book to graze and read one at a time.

The essays pull you in, and provide excellent frameworks for looking at various business activities.

20+% annualised return on investment over the past 50 years! Warrant Buffett and Charlie Munger are God-like investors in our universe, and those essays from annual reports to all shareholders are the valuable insights, summaries and pure knowledge.

I’ve got to admit I can’t comprehend quite a lot of the contend as an absolute outsider and newbie in investing, nevertheless still learned quite a lot from this book.

Will definitely revisit in the future.

What does a business manager do? What are "reported earnings"? Do stock prices reflect the cash a business will generate? Should they? Fascinating, folksy window into business.

"[Aesop's] investment insight was 'a bird in the hand is worth two in the bush.' To flesh out this principle, you must answer only three questions. How certain are you that there are indeed birds in the bush? When will they emerge and how many will there be? What is the risk-free interest rate (which we consider to be the yield on long-term US bonds)? If you can answer these three questions, you will know the maximum value of the bush -- and the maximum number of birds you now possess that should be offered for it. And, of course, don't literally think birds. Think dollars."

it's like the bible. yuh.

Warren's candor unravels a lot of the deception in the different sectors of finance.

- Intrinsic vs book value
- IB's propensity to tell you to buy at a preimium of 20-50% rather than a discounted value and justifying it through synergies. Later spinning off the company you were so enticed to acquire to "unlock shareholder value". Fees & action perpetuation
- PE's dealings and debt/equity restructuring. Equity reduced debt maximized. Best when interest rates are low.
- Valuation - how many birds, certainty of them, risk free interest rate, black scholes
- use return on equity not earnings per share
-net cashflow discounted, rate of risk of long term bond rate, what is the discount, theory of investment value
- Capex is the main thing left out of cash flows
- the clocks have no hands
-1st class CEOS exhibiting 3rd class actions due to the institutional imperative. Mimesis & short term success incentivization.
- upstream/downstream structure of holding companies

Lawrence A. Cunningham opens this book with an appropriate excerpt from the essays of Michel de Montaigne: "The speech I love is simple, natural speech, the same on paper as in mouth; a speech succulent and sinewy, brief and compressed, not so much dainty and well-combed as vehement and brusque."

There is no shortage of books on Warren Buffet. It is an interesting state of affairs: numerous writers, pundits, and other Warren Buffet "experts" opining on the life and investing decisions of perhaps the greatest investing and capitalist "expert" of all time.

Others opining on the life of a genius is often necessary, when it comes to understanding the broader impact that genius has had on society. A masterful investor, scientist, engineer, or whatever is not also necessarily always an effective writer and communicator. Mr. Buffet, however, is a rare breed.

Not only has Mr. Buffet, across his lifetime, compiled the most impressive track record capitalism has ever produced- one of growth, achievement, societal awareness and improvement, but he can also write. He writes in a language that is, in the words of Montaigne, "simple...succulent and sinewy, brief and compressed...brusque."

Lawrence A. Cunningham through this book expresses an important truth- when a man such as Mr. Buffet writes with the clarity and power that he does, not much benefit is given to the reader by adding words on top of what is already clear and powerful prose. If one is trying to make sense of Mr. Buffet and his philosophies, the best place to start is with Mr. Buffet's own "sinewy" words, which are presented, unadorned except with a short preface, in this book.

"Essays" is a bit of a misnomer for the content of this book. In fact, this book is actually a compilation of excerpts from the Annual Letters Mr. Buffet has written to the shareholders of his company, Berkshire Hathaway, over the last thirty plus years. Worth noting, these very letters are available, in their entirety, on the World Wide Web for free. Something, however, is definitely gained through reading Mr. Buffet's words as Mr. Cunningham has arranged them.

Mr. Cunningham has arranged this book by subject, rather than time- and the effect is pleasing and effective. The way that Mr. Cunningham chose to arrange Mr. Buffet's letters is into the following categories: Corporate Governance, Corporate Finance and Investing, Alternatives to Common Stock, Common Stock, Mergers and Acquisitions, Accounting and Valuation, and Accounting Policy and Tax Matters.

The effect of Cunningham's carefully-chosen delineations is a book that has more the feel of an educational guide, than a story of Mr. Buffet's investing career and his company, Berkshire Hathaway.

What emerges out of this educational guide is the philosophy and teachings of a gifted Professor and practitioner. No matter whether Mr. Buffet is waxing poetic on business or outlining his scruples over how corporations account for equity stock options, out of his writing emerges a consistent and eloquent philosophy on the "right" and effective approach to business, investing, capitalism, and life.

The "Buffet Way", perhaps impossible to summarize fully in a few short sentences, is stoic and original. The practitioner of this philosophy is one who stands apart from society, ignores any "institutional imperative" that may impede rational decision-making. The "Buffet Way" is a mode of analysis that knows the bounds of its own limitations, and is free of emotion. The Buffet Way demands that every decision require a "margin of safety" or room for error.

Most importantly, Mr. Buffet's view of investing, and particularly of investing in the stock market or in other marketable securities, grasps a simple but important concept that is lost on so many market pundits and practitioners: stocks are not abstractions. Stocks are certificates that represent a share of ownership in an underlying business. Too often people don't look through stocks to the underlying business they represent. This book aptly is subtitled, "Lessons for Corporate America", because Mr. Buffet is after all an evaluator of businesses.

Stocks and their prices are only relevant when they become disjointed, in a favorable way, from the underlying realities of the business they represent.

To think the "Buffet Way" takes more, though, than knowing the concept's basic precepts. It takes discipline, and a stoic fight against the animal spirits that so often lead investors astray. This book and its precepts are worth reading, and rereading, until hopefully its lessons are engrained in the psyche in a way that they become impossible to ignore.

This book deserves to be transformed into a textbook and made mandatory reading at business schools. There is arguably no one in the world better at what they do than Warren Buffett. We are incredibly fortunate that Mr. Buffett takes the time to share his knowledge with anyone willing to learn.

The book does an excellent job of clearly outlining the Berkshire Hathaway philosophy on investment decisions, emphasizing the importance of acquiring entire businesses or shares in great companies at a fair price—businesses they understand and that are led by managers they admire that are likely to have success in the long term.

In an industry often plagued by historical problems and corruption, Warren Buffett stands out as a beacon of integrity and wisdom. He is not only an investing genius but also a principled and admirable individual. Generations to come will benefit from his example. The world is lucky to have Warren Buffett—there will never be another like him.

Отличная книга про долгосрочные инвестиции.

I started with this book with a sort of apprehension. I don't have much domain knowledge in Finance and thought how I will be able to understand the jargon. One read later I can say that I already understand some of the things a little bit better. Although I skimmed some part of the essays because they didn't make much sense to me right as of now, I feel I will definitely be coming back to this book to read in its entirety.

The essays talked about various things. Here I put some of the most salient things. You might consider them spoilers but there are no spoilers in non-fiction. Yet SPOILER WARNING!!!!!


1.tA Company is the sum of its management:
-tDirectors therefore must be chosen for their business savvy, their interest, andttheir owner-orientation - Owner like attitude of the directors
-tThe outside board members should establish standards for the CEO's performance and should also periodically meet, without his being present, to evaluate
-tToo often, directors are selected simply because they are prominent or add diversity to the board. That practice is a mistake.
-tAn owner on the board should be the most effective in insuring first-class management.
-tBetter managers make better company –One of the point buffet emphasized was to attract and keep outstanding managers to run our various operations. They unfailingly think like owners (the highest compliment we can pay a manager) and find all aspects of their business absorbing.
-t"If each of us hires people who are smaller than we are, we shall become a company of dwarfs. But, if each of us hires people who are bigger than we are, we shall become a company of giants."



2.tReturns should not be everything:
-tYou won't close down businesses of sub-normal profitability merely to add a fraction of a point to our corporate rate of return. However, I also feel it inappropriate for even an exceptionally profitable company to fund an operation once it appears to have unending losses in prospect. Adam Smith would disagree with my first proposition, and Karl Marx would disagree with my second; the middle ground is the only position that leaves me comfortable.
-tWe look at the economic prospects of the business, the people in charge of running it, and the price we must pay. We do not have in mind any time or price for sale. Indeed, we are willing to hold a stock indefinitely so long as we expect the business to increase in intrinsic value at a satisfactory rate.


3.tAn astute approach to market up and downs:
-tIf we have good long-term expectations, short-term price changes are meaningless for us except to the extent they offer us an opportunity to increase our ownership at an attractive price.
-tBerkshire and its long-term shareholders benefit from a sinking stock market much as a regular purchaser of food benefits from declining food prices.
-tThe key to successful investing was the purchase of shares in good businesses when market prices were at a large discount from underlying business values.
-tYou should imagine market quotations as coming from a remarkably accommodating fellow named Mr. Market who is your partner in a private business. Without fail, Mr. Market appears daily and names a price at which he will either buy your interest or sell you his. Indeed, if you aren't certain that you understand and can value your business far better than Mr. Market you don't belong in the game.
-tIn my opinion, investment success will not be produced by arcane formulae, computer programs or signals flashed by the price behavior of stocks and markets. Rather an investor will succeed by coupling good business judgment with an ability to insulate his thoughts and behavior from the super-contagious emotions that swirl about the marketplace.
-tThe market may ignore business success for a while, but eventually will confirm it. "In the short run, the market is a voting machine but in the long run it is a weighing machine." In fact, delayed recognition can be an advantage: It may give us the chance to buy more of a good thing at a bargain price.
-tSometimes, of course, the market may judge a business to be more valuable than the underlying facts would indicate it is. In such a case, we will sell our holdings. Sometimes, also, we will sell a security that is fairly valued or even undervalued because we require funds for a still more undervalued investment or one we believe we understand better.
-t"As time goes on, 1 get more and more convinced that the right method in investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes.
-tAn investor needs to do very few things right as long as he or she avoids big mistakes.
-tWhatever the outcome, we will heed a prime rule of investing: You don't have to make it back the way that you lost it.
-tOur goal is more modest: we simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.


4.tBuy a stake in the company as if you own a business:
-tfirst, try to assess the long-term economic characteristics of each business; second, assess the quality of the people in charge of running it; and, third, try to buy into a few of the best operations at a sensible price.
-tIf at first you do succeed, quit trying.
-tOur goal is to find an outstanding business at a sensible price, not a mediocre business at a bargain price.
-tThe best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return.
-tFirst, we try to stick to businesses we believe we understand.
-tSecond, and equally important, we insist on a margin of safety in our purchase price. If we calculate the value of a common stock to be only slightly higher than its price, we're not interested in buying.
-tYou simply want to acquire, at a sensible price, a business with excellent economics and able, honest management. Thereafter, you need only monitor whether these qualities are being preserved.
-tOur reaction to a fermenting industry (a new initiative which we don’t understand fully) is much like our attitude toward space exploration: We applaud the endeavor but prefer to skip the ride.
-tYou can, of course, pay too much for even the best of businesses.
-tYou only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.
-tYour goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher five, ten and twenty years from now.
-tIf you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value.
-tIt's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
-tLethargy bordering on sloth remains the cornerstone of our investment style
-tIn investing, just as in baseball, to put runs on the scoreboard one must watch the playing field, not the scoreboard.




5.tTHE GOAL of investment:
-tDirectly owning a diversified group of businesses that generate cash and consistently earn above-average returns on capital. That is for every dollar spent how much am I getting back?
-tThe key to successful investing was the purchase of shares in good businesses when market prices were at a large discount from underlying business values.
-tWe look at the economic prospects of the business, the people in charge of running it, and the price we must pay. We do not have in mind any time or price for sale. Indeed, we are willing to hold a stock indefinitely so long as we expect the business to increase in intrinsic value at a satisfactory rate.
-tDon’t watch the ticker: In investing, just as in baseball, to put runs on the scoreboard one must watch the playing field, not the scoreboard.


6.tEven Great Operations in unprofitable industries yield peanuts:
-t"A horse that can count to ten is a remarkable horse-not a remarkable mathematician." Likewise, a textile company that allocates capital brilliantly within its industry is a remarkable textile company-but not a remarkable business.

-tShould you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.

-tWhen a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.


7.tFocus on Value Investing:
-tThe value of any stock, bond or business today is determined by the cash inflows and outflows-discounted at an appropriate interest rate-that can be expected to occur during the remaining life of the asset.
-tThe investment shown by the discounted-flows-of-cash calculation to be the cheapest is the one that the investor should purchase-irrespective of whether the business grows or doesn't, displays volatility or smoothness in its earnings, or carries a high price or low in relation to its current earnings and book value.
-tIn our view, though, investment students need only two well-taught courses-How to Value a Business, and How to Think About Market Prices.
-tYour goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher five, ten and twenty years from now.
-tIt's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
-tIn analysis of operating results-that is, in evaluating the underlying economics of a business unit-amortization charges should be ignored. What a business can be expected to earn on unleveraged net tangible assets, excluding any charges against earnings for amortization of Goodwill, is the best guide to the economic attractiveness of the operation. It is also the best guide to the current value of the operation's economic Goodwill.


8.tDividends , Reinvestment and stuff:

-tShareholders would be far better off if earnings were retained only to expand the high-return business,

I can see how great this book can be, so I wanted to give it 5 stars. However, the verbiage and many concepts are currently beyond me so I can’t give it the review it truly deserves. It was very dry but a great resource for someone with a little more knowledge in the finance areas. I will eventually updated this with a more accurate review when I learn more and can fully comprehend the book.