A concise, no-nonsense rulebook for investors looking to achieve Buffett-like results Warren Buffett is one of the wealthiest investor in the world. Millions of independent investors follow his every move. But why Buffett? What signs does he see that others miss? And more important, what can investors do to follow Buffett’s path to investment and financial success? How Buffett Does It explores the 24 primary rules Buffett has followed from day one, and that people from market n…
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Warren Buffett is by far the wealthiest and most famous investor of all time. Why not learn how he achieved his success and follow his example? This is a short book, but features the most important elements of Mr. Buffett’s philosophy:
* Buy businesses, not stocks
* Buy companies with competitive advantages or moats
* Practice inactivity, not hyperactivity
* Choose simple and easy to understand businesses
* View market downturns as buying opportunities (2008 and 2009 is a perfect and opportune time)
* Concentrate your investments
Other investment theories may try to persuade investors that it is impossible to beat the market because most money managers cannot. But do they ever tell investors to concentrate investments, meaning not to diversify too much? Of course not. Most money managers fail to beat the market because they own way too many investments. My favorite quote from this book on diversification is:
“If you’ve found the right stock, why buy only a little?”
I highly recommend this book and any other book that talks about Warren Buffett’s investment style. We are fortunate enough that he is willing to share it with all of us.
-Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market
`How Buffett does it’ is an excellent introductory book for people interested in value investing, or interested in Mr Buffett’s investment methodology.
The book is written in a very easy to read, and easy to understand manner and will give you a solid foundation for building your value knowledge investing further. There are no formulae on how to calculate the true value of a share, or worked examples that will help you do this for your own selected shares, which would have been nice to see as an appendix, which was why I didn’t give the book 5 stars. If you have other Buffett books in your library then this book will probably recover old ground. If you’re just starting out, then I would recommend this as one of the better books with which to start your education.
Other reviews written on this book are fair, if you’re looking for an in-detail how to book, then this is not your book, if you’re looking for simple guidelines you can remember and apply easily this book is a worthwhile purchase.
This book is a great example of the architectural and design mantra, “form follows function.” Its “form” is that of an easy-to-read handbook explaining the basics of value investing. Its “function” is to explain how Warren Buffett, a self-made investor who is now worth about $40 billion, used value investing to make his fortune. Buffett’s premise is that people should base their investing strategies on common sense and search out assets that are selling for less than they are worth. For this, you don’t need esoteric mathematical formulas; all you need are the guidelines that this book clearly enumerates. Although author James Pardoe often merely reiterates what Buffett has said in his own books, Pardoe deserves credit nevertheless for packing his handbook with illuminating examples and stories. We believe this book will be practical for anyone intimidated by investing, overwhelmed by data or vulnerable to pressure from brokers. In his description of value-investing, Pardoe raises a good question: Why does Wall Street dislike it so much? Buffett’s answer: “It’s too simple.”