‘Buffettology’ Review

Review Buffettology

H&R Block now trades at approximately $60 a share and the Post now trades at approximately $500 a share. Key Point To be like Warren one has to know what to buy and when to buy it. An exceptional business with a durable competitive advantage working in its favor. When the stock market’s pessimistic shortsightedness has driven the price of its shares into the dumps.

Keeps us enthralled by examples from buffets life but in essence keeps educating us about the fundamental aspects of stocks. That’s where Buffett’s business strategy comes in. By investing heavily in insurance companies early and often, he’s the beneficiary of a steady stream of cash, ready to be put to use whenever the opportunity presents itself.

Quotes From Buffettology: The ..

Review Buffettology

However, the authors fail to explain why low debt, high return on equity companies are so attractive. They dance around but never hit the correct answer. This makes me wonder if they really understand it.

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Review Buffettology

One unexpected insight from the financial analysis mechanics for me is that it made me think about my mindset regarding even simple day-to-day expenditures and investments of my time. Applying the RoE model to daily life as well revealed that there are certainly areas where I could get a better return — or at least the awareness that I may not even know my current Review Buffettology RoE. PRO — If you don’t want to read Graham’s books, then this is a high-level short-cut to the nuts and bolts of Buffett’s investment analysis model. While Mary did state that she was going to repeat a lot of material to help those who need it to learn key points — knowing that this is her style of writing will help you skim through the book a little bit faster.

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Like Buffett’s method it is not perfect and it does need to be adapted to changing times and your own personality. The virtue of this book is that it gives the reader an Review Buffettology easily followed approach that that has been profitable in the past. Markets change and investors like generals often fight the last war- an approach conducive to defeat.

In fact this has come about numerous times, and they usually end up with names like Black Friday, Black Tuesday, well, actually any day with the world black in front of it. Building from the ground up, Buffett chose wisely and picked his stocks with care, in turn amassing the huge fortune for which he is now famous. OVERALL — I learned some new key insights and these have certainly helped me to look at investing in a different light. Such as, the priority order of key management principles that can tell you if management is shareholder focused or not.

  • From there, The New Buffettology goes on to discuss when and why Warren buys particular stocks.
  • It highlights how he finds buying opportunities amidst stock market panics, corrections and industry recessions.
  • That translates into a compounded return of 17.46% annually.

When its author is a top performing fund manager, and considered to be one of the foremost authorities on the investment guru, then answer is clearly, yes. Many of the conclusions that I had arrived to literally mirror what was written in the book, and the best thing is, the book went further and developed a whole neat model of how to pick stock based on the underlying principles.

The last chapter provides a wonderful template of questions about a company. Answering all the questions will help one decide whether to buy a stock or not. The book also lists all the companies that Buffett had or has invested in in the past few decades Review Buffettology and also the rationale behind them. Being the most successful investor of all time I really like reading about Warren and his contrarian practices. Coming from a finance background I saw this as a real easy read, and a good intro to successful investing.

I started reading everything he wrote, studying everything on the Berkshire Hathaway site, watching every video and presentation, and analyzing every book I could find or that he would discuss. I gave 3 stars because I did like the book, but it was not something I would stay up late into the night reading. No debt an lead you to a company with a SCA as the SCA company has no need for debt due to the spin-off of debt.

This is an excellent book for the novice investor. Before you enter the market, be sure to read Review Buffettology the philosophy of long-term value investing that put Buffet on top and keeps him there.

But if you follow Warren Buffett, then you know that very little of his investment philosophy is truly ground-breaking, but that’s the point. Prime members enjoy FREE Delivery and exclusive access to music, movies, TV shows, original audio series, and Kindle books. But Warren Buffett and his investing strategies are not as simple as the author seems to imply. Lots of good insight into Warren Buffett’s way of investing but a little out dated, because it was written a few years ago. Loved the math lesson on finance calculator, I even bought the calculator used in the examples.

That is all a share is, and in a way it is no longer even that, and that is a piece of paper that represents ownership in a company, . In the end if that company collapses in a heap of debt, then in that piece of paper is absolutely worthless. My biggest issue with the market is that it tries to make concrete some future point that may not come about, yet people will hold onto those suppositions as if they were true.

This book is a fun read, definitely not a textbook. If you are interested in “buy and hold” investing, don’t want Review Buffettology to read another teztbook, and would like to improve your investment “batting average”, then buy this book.

Such buying opportunities come during a bear market, a recession, a calamity, or bad news about a company. One is price-competitive-commodity business and the other is competitive-durable-advantage business. Buffet avoids the first type of business, as there are several companies offering the same product or service and the profit margins are narrow due to price competition.

We deliver the joy of reading in 100% recyclable packaging with free standard shipping on US orders over $10. Having read many (all?)of the books on Buffett I feel this is the best written and most usable.

Books By Mary Buffett

I’ve applied the formulas to several large cap stocks in a fantasy portfolio. My performance currently matches the S&P 500 pretty closely but a lot of my success is due to one speculative stock that I could barely https://forex-trend.net/ justify using the recommendations in this book. 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.

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