The Warren Buffett Way, 30th Anniversary Edition (Hardcover, 4, Anniversary)

The Warrant Buffet Way, 30th Anniversary Edition

Forward to the First Edition

Forward to the Second Edition

Forward to the Third Edition

Preface

Chapter 1: World’s Greatest Investor?????? 1

Tracking Success????????????? 3

Understanding Patterns 4

The Making of an Entrepreneur?? 5

Chasing His Dreams: Early Influences?????? 7

Getting an Education????? 11

Investing Becomes the Focus????? 13

Buffett Limited Partnership????????? 15

Growing the Partnership?????????????? 16

Beating the Dow????????????? 17

Berkshire Hathaway: Compounding Conglomerate??????????? 19

Chapter 2: The Education of Warren Buffett???????? 1

Howard Homan Buffett: Earliest Influence???????????? 3

Political Roots??? 4

Philisophical Roots????????? 6

Benjamin Graham: Developing an Investment Methodology????????? 8

Early Years as an Investor???????????? 9

Defining Investment??????? 10

Value Investing? 13

Philip Fisher: Discerning a Good Business?????????????? 15

The Significance of Profit????????????? 18

The Signifcance of Management 19

The Circle of Competence???????????? 21

Charlie Munger: An Intellectual Perspective????????? 22

The Workings of a Polymath??????? 25

Foundations of Worldly Wisdom?????????????? 27

Rational Thinking???????????? 30

Rational Investing??????????? 32

Chapter 3: Business-Driven Investing?????? 1

Business Tenets 4

Simple and Understandable???????? 4

Consistent Operating History?????? 5

Favorable Long-Term Prospects? 6

Management Tenets?????? 7

Rational Management??? 7

Candid Management?????? 9

The Institutional Imperative???????? 10

The Measure of Management???? 12

Financial Tenets?????????????? 14

Return on Equity????????????? 14

Owner Earnings 16

Profit Margins??? 17

The One-Dollar Premise 18

Value Tenets????? 18

Determine the Value?????? 19

Buy at Attractive Prices? 23

An Intelligent Investor??? 23

Chapter 4: Common Stock Purchases:????? 2

Five Case Studies????????????? 2

The Washington Post Company? 5

Tenet: Simple and Understandable?????????? 7

Tenet: Consistent Operating History???????? 8

Tenet: Favorable Long-Term Prospects??? 8

Tenet: Determine the Value???????? 9

Tenet: Buy at Attractive Prices??? 10

Tenet: Return on Equity 10

Tenet: Profit Margins????? 11

Tenet: Rational Management????? 11

Tenet: The One-Dollar Premise?? 12

GEICO Corporation????????? 14

Tenet: Simple and Understandable?????????? 16

Tenet: Consistent Operating History???????? 17

Tenet: Favorable Long-Term Prospects??? 19

Tenet: Candid Management???????? 19

Tenet: Rational Management????? 20

Tenet: The Institutional Imperative?????????? 21

Tenet: Return on Equity 23

Tenet: Profit Margins????? 23

Tenet: Determine the Value???????? 23

Capital Cities/ABC??????????? 25

Tenet: Simple and Understandable?????????? 26

Tenet: Consistent Operating History???????? 26

Tenet: Favorable Long-Term Prospects??? 27

Tenet: Determine the Value???????? 27

Tenet: The One-Dollar Premise?? 30

Tenet: Rational Management????? 30

Tenet: The Institutional Imperative?????????? 31

The Coca-Cola Company?????????????? 33

Tenet: Simple and Understandable?????????? 34

Tenet: Favorable Long-Term Prospects??? 34

Tenet: Profit Margins????? 36

Tenet: Return on Equity 36

Tenet: Candid Management???????? 37

Tenet: Rational Management????? 38

Tenet: Owner Earnings?? 38

Tenet: Determine the Value???????? 38

Tenet: Buy at Attractive Prices??? 40

Apple, Inc.????????? 41

Tenet: Simple and Understandable?????????? 43

Tenet: Return on Equity 45

Tenet: Determine the Value???????? 46

Tenet: Rational Management????? 51

Tenet: Favorable Long-Term Prospects??? 52

The Value of Retained Earnings? 56

Chapter 5: Managing a Portfolio of Businesses???? 1

Portfolio Management Today: A Choice of Two?? 2

A Third Choice: Focus Investing?? 4

John Maynard Keynes as Investor???????????? 8

Buffett Partnership, LTD.????????????? 10

Charles Munger Partnership???????? 10

Sequoia Fund???? 11

Lou Simpson: GEICO?????? 13

Three Thousand Focus Investors 14

A Better Way to Measure Performance?? 17

The Tortoise and the Hare??????????? 18

Alternative Performance Benchmarks????? 22

Look-Through Earnings?? 23

Berkshire’s Measuring Stick???????? 24

Two Good Reasons to Move Like a Sloth 25

Reduce Transaction Costs??????????? 26

After-Tax Returns???????????? 27

High Active-Share Investing???????? 29

Chapter 6: It’s Not That Active Management Doesn’t Work?????????? 1

High Priests of Modern Finance? 2

Markowitz: Measuring Risk????????? 3

Variance: Quantifying Risk and Return???? 5

Sharpe: Defining Volatility??????????? 6

Buffet: Business Driven Investing????????????? 8

Rethinking Modern Portfolio Theory??????? 11

Efficient Market Hypothesis???????? 13

Market Efficiency: In Theory??????? 15

Market Efficiency: In Practice????? 16

Investment and Speculation: Understanding the Difference ???????? 19

Investing in a Parallel Universe??? 23

Chapter 7: Money Mind 1

Sportsman, Teacher, Artist?????????? 3

Buffet the Sportsman????? 4

Buffett the Teacher???????? 5

Buffett the Artist????????????? 7

Berkshire Hathaway: An American Institution?????? 9

Appendix A: Berkshire’s Performance vs. S&P 500 Index (1965 ? 2022)

Appendix B: Berkshire’s Common Stock Portfolios (2013 ? 2021)

Acknowledgements

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About the Author

Index