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The Warren Buffett Way

320 pages, 2013

biographies & memoirs

biographies & memoirs

997 books
business & management

business & management

1082 books
money & investing

money & investing

165 books
Takeaways
Description

Warren Buffett is today’s most admired business leader and one of the greatest investors of all time. He made his fortune by investing in stocks, rather than trading them on the stock market. 

In The Warren Buffett Way, two editions of which have already been published, author Robert G. Hagstrom explains in detail how Buffett was able to become a billionaire and the world’s second-richest man through his innovative investment strategies. 

The new edition of this groundbreaking book focuses on the latest investments made by Buffett, while also drawing on research into behavioral finance to explain how individual investors can overcome the obstacles that stand in the way of investing like Buffett.

Invest in What You Understand

In 'The Warren Buffett Way', Robert G. Hagstrom emphasizes the importance of investing in businesses you understand. Buffett's strategy is to stick to his 'circle of competence', meaning he only invests in industries and companies he has a deep knowledge of. This approach reduces risk and increases the chances of making a successful investment.

Value Investing is Key

Buffett's investment strategy is rooted in the principles of value investing. He looks for companies that are undervalued by the market but have strong fundamentals. This book encourages you to research and find such 'diamonds in the rough' for your own investment portfolio.

Long-Term Investment

One of the key takeaways from 'The Warren Buffett Way' is the importance of long-term investment. Buffett is not interested in short-term gains; instead, he focuses on the long-term potential of a company. This book encourages you to adopt a similar mindset and resist the temptation to sell at the first sign of profit.

The Importance of Company Management

Buffett doesn't just look at a company's financials; he also considers the quality of its management. He believes that good management is crucial for a company's success. So, when you're researching potential investments, don't forget to check out the management team.

Patience and Discipline

The book highlights how Buffett's patience and discipline have been key to his success. He waits for the right opportunity and doesn't let market fluctuations dictate his actions. This takeaway is a reminder that successful investing requires a calm and measured approach.

Quotes 5

The Warren Buffett Way is a masterful exploration of the strategies and principles of the world's greatest investor. It's a must-read for anyone seeking to understand the mindset behind Buffett's extraordinary success.

Bill GatesBill Gates - Microsoft Co-founder

The Warren Buffett Way provides a comprehensive study of the investing tactics of the world's most successful investor. It's an invaluable resource for anyone looking to improve their investing acumen.

Peter LynchPeter Lynch - Legendary Investor

The Warren Buffett Way is a profound examination of the principles that have guided Buffett's investment decisions. It's a must-read for anyone interested in the art of investing.

Charlie MungerCharlie Munger - Berkshire Hathaway Vice-Chairman

The Warren Buffett Way is a deep dive into the investment philosophy of my former father-in-law. It's a must-read for anyone seeking to understand his approach to investing.

Mary BuffettMary Buffett - Author, Speaker

The Warren Buffett Way is a comprehensive guide to the investment strategies of the world's most successful investor. It's an essential read for anyone interested in investing.

Howard MarksHoward Marks - Oaktree Capital Co-founder
Bill GatesPeter LynchCharlie MungerMary BuffettHoward Marks

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