Sunday, December 14, 2008

Warren Buffett


http://tinyurl.com/reviewHowBuffettDoesIt
Warren Buffett - How Buffett Does It
Simple yet powerful strategies of Buffett


How many animals on this earth know about Warren Buffett. This question was intentional because, i think most of the two legged animals know him. Its only those uneducated :) four legged ones who have missed this opportunity.

So let me start with, telling something about Warren Buffett. Warren Buffett is one of the most successful investor till date. Warren Buffett is the third richest person on this planet. Warren Buffett is the largest shareholder and CEO of Berkshire Hathaway. Berkshire Hathaway is a holding company headquartered in Omaha, Nebraska, U.S..

Regarding the book, its just perfect. The size of the book is quite attractive considering the amount of experience of Warren Buffett. Still not able to believe how the author has compressed this text. Full credits to the author. The English is pretty nice, easily understandable. The font size is legible. The book is divided into 24 small chapters. Each chapter consisting of around 10-15 pages. No hard work is required in reading this book. Also the concepts given can be grasped by anyone. Its not at all technical, still it gives the essence of Warren Buffett's investment strategies.

The author’s hard work is really creditable. It must have taken him a lot of time to compile this stuff in such a spic and spine fashion. The 24 chapters are nothing but 24 mantras on investing. I think its not from Warren Buffett's mouth, but the authors analysis on Warren Buffett's thoughts.

James (the author) speaks about what all factors you have to consider before investing in a company. Whether you should be paranoid or complacent. What all types of analysis is required to be done at the time of investing? How to decide which company to invest in. Also the sector or the vertical you invest in, is important. So if we as share holders take so much pain to invest in a company, it is the duty of the company to take care of us. Before making any decisions they must first consider the share holders.

Warren Buffett normally do not invest in more than 10 companies or so. But the value of shares he purchases, over a period of time or at a time, goes into billions. Before taking this decision Warren Buffett do a thorough study of that company. Warren Buffett reads every article, report and for that matter any thing available on a particular company before he decides to invest in that company. If Warren Buffett have faith in that business and its board, only then Warren Buffett purchase the stocks. Warren Buffett believes that you should not blindly follow the herd. It should be calculative. Also most of these quantitative calculations should be yours. It should not be influenced by any analyst. It should not be a guess but a informed judgment.

The best part is every chapter ends with 4-5 key points, which are summarized from that chapter. The naming of each chapter tells us the story. Many practical examples are also given to prove the points.

I think I should stop here, insist you guys to go ahead and read this simple yet powerful book. Because then I may probably rewrite the whole book here itself.

Ciao

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