Discussion in 'Educational Resources' started by hermit_trader, Jan 13, 2006.
Which one is the best book about Buffett's investment methodology?
"The Warren Buffet Way" by Hagstrom should be your first stop.
Your second stop should be the Berk Hath annual letters, which can be found on the BH website.
security analysis and intelligent investor. read from his mentor and berkshire's annual letters.
how were ben grahams actual results?
you know, i don't actually know. i know he got killed in the depression but faired better than others and learned from the experience.
his pupils have done excellent including buffet who called security analysis the bible of investing. like the art of war, it may be an old book but certain principles never die.
17% annualised for 30 years after being wiped out between 1929-1932.
Buffett methodology is a mixture of GrahamÂ¢s and Phil Fishers ideas so both Â¡The Intelligent InvestorÂ¢ and “Common Stocks and Uncommon ProfitsÂ¢ are good readings.
As for the results of the method the appendix in GrahamÂ¢s book by Buffett gives an insight.
the best buffett ever is:
"trade like warren buffett" by james altucher.
this tome provides more of a rounded view rather than the same old tired ben graham BS.
After reading 3 or 4 Buffet oriented books years ago, I found them to paint a very faulty picture of how he actually made his money and built the BH fortune.
The conventional wisdom on Buffet offered in these books is that after working with Graham (or was it Dodd?...anyway) he applied these value investing criteria and a buy and hold strategy over a few decades and made a killing.
But this is marginally true at best. The conventional wisdom ignores that Buffet used the ability to leverage businesses he owned or controlled to acquire other businesses at discounts you would never see as a typical investor acquiring shares in the open market. For example, how many of us are going to go out and buy an entire furniture company or candy company? Yes, the acquisitions were based on being undervalued. But to assert that what he did is akin to an average Joe applying a value/buy-n-hold strategy is highly misleading.
Save your money and buy a book that will teach you something, not spin some faulty and misleading tale. If you want to brush up on fundamental type topics, give Mises' Theory of Money and Credit a spin sometime. It will be a better use of your time, IMHO.
well with buffett its about buying good businesses at a good price. whether it was a whole or part of a company his philosophy was the same.
i'm sure if he could have bought coke for a good price he would have, but buying a whole publicly traded company can command some hefty premiums.
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