Volatility is back, not only in market prices, but in the way we look at everything. The market is getting nervous, and competition is heating up. Continue reading “Finance Friday #3: Winners & Losers”
Tag: Warren Buffett
The market is flooded with books about Warren Buffett. This is the 5th one that I have read. Some books assemble or quote Buffett’s writings; others reverse engineer Buffett’s investment strategy. Often these authors seem to be trying to convince you they have inside information or trying to indoctrinate you into the Buffett cult. University of Berkshire Hathaway is not one of those books. It has details you won’t find anywhere else, which makes it a relevant addition to the prolific repertoire of books about Buffett and Berkshire. Continue reading “Book Review: University of Berkshire Hathaway”
Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffett the World’s Most Famous Investor
There are plenty of books about Warren Buffett available at any bookstore or library. What makes this one unique is that it is not written from the perspective of Warren Buffett’s cult following. After her divorce with Warren Buffett’s son, Mary Buffett capitalized on a rare opportunity to publish insider information about one of the richest people in the world and his investment strategies.
Rather than quote Warren Buffett’s shareholder letters to death like most authors, Mary sticks to the details of Warren’s investments, how he made each choice and how it worked out. She provides a lot of quantitative data that is useful for reverse-engineering Warren Buffett’s portfolio.
Information from this book definitely helped me refine a few aspects of my investing philosophy and my screening process. Mary is concise and unemotional, making this a quick and productive read.
The New Buffettology
This sequel to Buffettology updates Mary Buffett’s analysis of Warren Buffett’s investing strategies from the first book. It is a fine addition to the library of materials available about Warren Buffett, adding new investment decisions from his history that I had not previously read about. It also brings readers of the 1997 Buffettology up to speed on developments getting into the 21st century, when the bubble of the 1990s burst, hurting many portfolios, but creating new opportunities for patient value investors.
Value investing is based on the premise that the market is irrational, and that stock prices therefore do not always match the actual value, or intrinsic value, of the security they represent. Value investors like Warren Buffett try to calculate a company’s intrinsic value to see if its stock is currently selling at a discount or a premium, and by how much. Continue reading “How I Estimate Intrinsic Value”