Warren Buffett's Ground Rules

352 pages, 2016

Jeremy C. Miller

business & management

1082 books

money & investing

165 books

economics & politics

987 books

Takeaways

Description

In the fourteen years between his time in New York with value-investing guru Benjamin Graham and his start as chairman of Berkshire Hathaway, Warren Buffett managed Buffett Partnership Limited (BPL), his first professional investing partnership.

During this time—a period during which he experienced an unprecedented record of success—Buffett wrote letters to his small but growing group of partners, sharing his thoughts, approaches, and reflections.

Now compiled for the first time and with Buffett’s permission, these letters spotlight his contrarian diversification strategy, his almost religious celebration of compounding interest, and his preference for conservative rather than conventional decision-making.

Understanding the Ground Rules

Jeremy C. Miller's book, Warren Buffett's Ground Rules, explores the fundamental principles that guided Buffett's investment decisions. These rules, such as investing in businesses that you understand and focusing on long-term value, are key to Buffett's success. By studying these rules, you can learn to make smarter investment decisions.

The Importance of Patience

One of the key takeaways from Warren Buffett's Ground Rules is the importance of patience in investing. Buffett didn't rush into investments; he took his time to research and understand the businesses he was investing in. This book encourages you to do the same, to take your time and not rush into any investment decisions.

The Power of Compound Interest

In Warren Buffett's Ground Rules, Jeremy C. Miller highlights the power of compound interest. Buffett's wealth didn't come from a single investment, but from years of steady growth. This book shows you how to harness the power of compound interest in your own investments.

The Value of Simplicity

Buffett's investment strategy, as outlined in Warren Buffett's Ground Rules, is surprisingly simple. He didn't use complex financial instruments or strategies; instead, he focused on buying good businesses at fair prices. This book encourages you to simplify your own investment strategy and focus on the fundamentals.

Learning from Mistakes

Even Warren Buffett made mistakes, and in Warren Buffett's Ground Rules, you'll see how he learned from them. This book encourages you to view your own mistakes as learning opportunities, not failures. By learning from your mistakes, you can become a better investor.

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