The Warren Buffett Way: 3rd Edition

I got deep into the Warren Buffet rabbit hole in the past year. Got to read all of Berkshire annual letters. I searched for a good complementary book that will allow me to learn more directly about how can I use WB methods in my own portfolio selection. This book is the exact thing that I wished for. Full of knowledge and construct in a very clean and easy to understand way to help someone like me with concrete steps to use.

nicely summarized investment principleas well as good background necessary knowledge with persuasive explanationI personally got the answer to my life long unsolved question; what does common stock investment (especially in the secondary market) really contribute to the society really? (other than just betting on the company’s share price which gives no additional value either to the company nor to the society)the answer I realized is that becoming long term value investor could contribute to both the company and society because it helps to find right share price eventually and sound investment environment

If you want to learn about Warren Buffet and his way of investing I believe this is a good book to start with.

I am not finished yet merely half-way into the book but I wanted to review this book; I just could not wait ;-) to tell you all about it. I am taking my time and digesting it all because the meat needs to be chewed, enjoyed and digested thoroughly. I am enjoying each aspect of this book and can't say enough...............I am loving this book.I have purchased several books pertaining to Buffett and have followed him and his work for a few years. I was interested in him not only because of his investments but his character is to be rewarded; money isn't everything. I have not finished the other books that I have purchased about him but want to be able to absorb this one first before moving forward into the others. Nor have I gotten a chance to delve into the website yet, I can't wait.This book helps you to see and delve into the ways into which Buffett processes his investments but also shows how his upbringing, mentors and experiences has helped him in his investment endeavors and the investment choices that he makes as seen in Chapter 2: The Education of Warren Buffet. Here it provides an understanding of the industry and having hands on experience does help but in not letting money be your guide is best. Once you understand then you can make better and educated decisions.Everyone may not be able to have the same types of successes as Buffett has had but to understand the method behind the man says a lot. Robert G. Hagstrom does a good job in breaking down the book. As in Chapter 4: Common Stock Purchases - Nine Case Studies in the tenets that he uses are valuable from Simple and Understandable and Price Point to Candor/Rationality. Stay tuned for a follow-up from me once I finish the book and review the website.Up unto this point this book is Highly Recommended.

bought as a gift, recipient was happy

I have read many books on value investing. This is far and away among the top books that I will re-read over the years to come. (Others include The Intelligent Investor; The Most Important Thing; Common Stocks, Uncommon Profits; The Essays of Warren Buffett; and Margin of Safety). Mr. Hagstrom has put together a great primer on how to evaluate a company as an investment. His tenets are great checklist for your thinking as you evaluate the merits of a company and its value and then apply a margin of safety to figure out if it is attractively priced. I would highly suggest that you also purchase something along the lines of William Sahlman's Note on Free Cash Flow Valuation Models available through Harvard Business Review if you're now sure how to perform a discounted cash flow model. I would definitely recommend buying and studying this book.

I've heard this, in the car, maybe 10 or 20 times. It makes me think -- and feel -- the importance of studying, and of course, what to actually study. I have a hard time understanding Annual Reports (from publicly traded companies), as all those accounting terms, and GAAP standards (hardy har har) make it difficult to figure out if a company is making more money than it spends, but more importantly Hagstrom's book gives an insight into Buffett's approach which includes, as an example, reading all those "footnotes", as well getting a feel for whether management is doing what they say they're going to do.I think that companies' annual reports are partly "boilerplate" info, but I also think they are INTENDED to obfuscate, since the real question is to determine whether a company makes more than it spends (profit), and secondly whether shareholders tend to benefit (or if the company plows that cash back into their own agenda).

It’s a good read about investments in stocks. But it’s easier to just use his portfolio because it’s really good.

Excellent! Amazing book for all investors strategies.

Per la scuola

The Warren Buffett Way Investment is a patience game. All investors need to have patience to become successful one. In this book, “The Warren Buffett Way”, written by Robert G Hagstorm has given several key aspects of Warren Buffett ideology in stock market investment. We all know Buffett has accumulated all of his wealth by investing in stock market. According to him there is no significant difference between buying a business outright and buying a piece of business in the form of share of stock. Thi s book has been divided into eight chapters; each chapter has given a significant lesson for the investors to accumulate wealth in stock market. Chapter 1: A Five Sigma Event: The World’s Greatest Investors Chapter2: The Education Of Warren Buffett Chapte r 3: Buying a Business: The Twelve Immutable TenetsChapter 4: Common Stock Purchase: Nine Case Studies Chapter 5: Portfolio management: The Mathematics of Investing Chapter6: The Psychology of InvestingChapter 7: The Value of PatienceChapter 8: The Wor ld’s Greatest InvestorsKey Takeaways:❖ Business Tenets: While investing in stock market Buffett doesn’t think about the market theory, macroeconomic factors, sectors trends etc. He focuses on,• Concept Of Business: Invest in those stocks which is relevant to understand their business models for you . Before investing all the investors need to have a clear generated models idea about the mode of operations, revenue , capital allocation model, cash flow etc. Understanding the business model allows investors to manage their portfolio efficiently.• Consistent Operating History: All businesses need to have consistency in their operation. If a business is able to generate consistent result over a period of time wi th same product and services, then it is reasonable to assume that those result will continue .Favourable long-Term Prospect: Every organisation needs to have long term plan sustainable planning. While investing investors need to have focus on long term prospect of business.❖ Management Tenet: Organisation can’t be succeeded in long term if the management is not honest and consistent. Role of the managers is not only to make organisation profitable but also to efficient allocation of capital for creating shareholders wealth. Managers need to be,• Rational • Candor: Management need report company’s performance with genuinely before shareholders and admits mistakes as well as share success.Strong management can make the company’s head held high. Every individual investors need to analyse behaviour of management before investing.❖ Financial Tenets: One of the most important tenets of investing is to analyse the financial position of an Organisation. Investors need to invest by keeping following things in mind, • Chose those companies whose profit margin is high to avoid loss. • The value of the company should be accurate with the share price. • Past Performance of the company and how management has accomplished its goal of creating shareholders value.❖ Market tenets: Rational investing of a company has two components,• What is the value of the business? • Can the business be purchased at a significant discount to its value?Determining the cash flow with a degree od certainty plays an important role while investing. ❖ Besides all the above points its also important to build a focus portfolio. In this chapter several examples of focus investors are there which will help investors to build efficient portfolio for long term success.❖ Patience is the key factor in stock market investing, slowly and careful analysis of every situation is an important factors all investors need to do.Several ways of Warren Buffett have been mentioned here which will help the investors for creating efficient portfolio and help them to maximise their wealth. All words will fall short to describe how outstanding book it is.Conclusion: In this book the Buffett’s principles of investment have been analysed in a broader way. Author has also captured the ideology of Benjamin Graham, Philip Fisher and Charlie Munger. Individual investors can navigate the rule, ideology and principles of the world greatest investors. Author has n icely combined the psychological phenomenon of investment with probability theories. In one sentence it’s not a Investment book it’s an Investment Bible.

Excelente