Investment Book Review: The Warren Buffett Way (Second Edition)
By: Robert G. Hagstrom
ISBN 978-0-471-74367-5
Book Price: $ 15.99
Best-selling professional portfolio manager
Robert G. Hagstrom is Senior Vice President of Legg Mason Capital Management and Portfolio Manager of Legg Mason Growth Trust. He is a member of the CFA Institute and the Philadelphia Financial Analysts. His best-selling book The Warren Buffett Way (first edition) spent 21 weeks on the New York Times bestseller list.
The largest investor in history
Robert G. Hagstrom reveals the successful investing principles of one of the greatest investors in history. 12 chapters analyze the largest investor in the world (Chapter 1), the purchase of a company (Chapter 4); Investment guidelines for business (chapter 5), management (chapter 6), finance (chapter 7), value (chapter 8), portfolios (chapter 10), psychology of money (chapter 11) and more.
Buffett’s Key Investment Practices
Robert G. Hagstrom’s experience in finance enables him to express Buffet’s practices clearly and simply. Knowledge of Buffett’s practices also marks your eligibility. He states: “We know that it is Buffett’s preference to” buy certainties at a discount … “We also know Buffett’s discipline of operating only within his” circle of competition. “
Hagstrom takes the time to explore Warren Buffett’s background by seeing his mentor, Benjamin Graham. He takes his time to define the Graham principles, seeded in Buffet. It states: “A true investment must have two qualities: a certain degree of security of capital and a satisfactory rate of return.” Seeing Buffet’s roots, he locates his beliefs.
Throughout this book, Robert uses selected quotes from Buffett to solidify his investing principles. He quotes Buffett as saying, “It is much better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
Buffett’s brief quotes also serve as guidelines for budding investors. Hagstrom again quotes Buffett as saying, “Buying stocks means buying a business and requires the same discipline.” Research is considered the key to success.
Answering Buffett’s questions reveals Buffett’s key practices. A question about the companies that Buffett will buy in the future reveals: “… avoid commodity companies and managers in whom you have little confidence … It must be a type of company that he understands, that has a good economy and is run by trustworthy managers. ” . “
Warren Buffett’s practices revealed
Robert G. Hagstrom reveals Warren Buffett’s successful investment practices so that readers can grow in his success.
Success Step: List 3 things Warren Buffet discusses in a company before investing in its publicly traded stocks.