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- Herausgeber: Business Book Summaries
- Kategorie: Fachliteratur
- Sprache: Englisch
The must-read summary of Robert G. Hagstrom's book: "The Warren Buffett Way: Investment Strategies of the World Greatest Investor".
This complete summary of the ideas from Robert G. Hagstrom's book "The Warren Buffett Way" reveals the approach behind the success of one of the most successful stock market investors: focus on the value of the business and its market price. In his book, the author explains how Buffett finds a business he understands and feels comfortable with, then he acts like a business owner rather than a stock market speculator. He studies everything possible about the business, becomes an expert in that field and works with the management rather than against them. This summary gives you a valuable insight into the techniques and strategies that Warren Buffett uses to guarantee success.
Added-value of this summary:
• Save time
• Understand key concepts
• Expand your business
To learn more, read "The Warren Buffett Way" and discover the secrets to success of this top investor.
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Seitenzahl: 28
Veröffentlichungsjahr: 2014
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Book PresentationThe Warren Buffett Way by Robert G. Hagstrom
Book Abstract
Important Note About This Ebook
Summary of The Warren Buffett Way (Robert G. Hagstrom)
1. WARREN BUFFETT
2. TWO MENTORS
3. FOUNDATIONS OF THE BUFFETT APPROACH
4. THE WARREN BUFFETT WAY
Book PresentationThe Warren Buffett Way by Robert G. Hagstrom
Book Abstract
MAIN IDEA
Warren Buffett is one of the most successful stock market investors of the past 30 years.
His entire approach is to focus on the value of the business and its market price. Once Buffett finds a business he understands and feels comfortable with, he acts like a business owner rather than a stock market speculator. He studies everything possible about the business, becomes an expert in that field and works with the management rather than against them. In fact, often his first act on buying shares in any company is to grant the managers his proxy vote for his shares to assure them that he has no intention to try and move the company away from its core values.
Buffett champions the value investment strategy, and puts no credence in day to day movements in share prices, the impact of the economic mood overall or any other external factors. He maintains a long-term perspective at all times, and never loses sight of the underlying value of a business.
Important Note About This Ebook
This is a summary and not a critique or a review of the book. It does not offer judgment or opinion on the content of the book. This summary may not be organized chapter-wise but is an overview of the main ideas, viewpoints and arguments from the book as a whole. This means that the organization of this summary is not a representation of the book.
Summary of The Warren Buffett Way (Robert G. Hagstrom)
1. WARREN BUFFETT
In the 1993 Forbes list of America’s richest people, Warren Buffett had an estimated net worth of $8.3 billion. Of all 69 people listed, Buffett is the only one who obtained his wealth from the stock market.
Buffett graduated from the University of Nebraska. While there, he read a book The Intelligent Investor by Benjamin Graham. This book so impressed Buffett that he went to New York to study with Ben Graham at the Columbia Graduate Business School.
At the age of 25 in 1956, Buffett started an investment partnership. He had seven limited partners who contributed $105,000 and Buffett as general partner put in $100. The limited partners received 6-percent interest per year and 75-percent of the profits generated above this level. Buffett was paid the other 25-percent. Over the next 13 years, this partnership compounded investments at an annual rate of 29.5-percent. In 1965, Buffett closed the partnership and cashed out with a personal stake of $25 million.
Warren Buffett used his capital to purchase a controlling interest in Berkshire Cotton Manufacturing, a well-established but struggling textile company. This company merged with Hathaway Manufacturing, and also bought interests in two insurance companies in 1967. The combined company was renamed Berkshire Hathaway.
The insurance companies generated steady cash flow, which was invested in stocks and bonds to have the funds available for payment of claims. The company’s stock portfolio in 1967 was $7.2 million, so Buffett assumed control of this. Within two years, the stock portfolio had grown to $42 million, and the insurance company profits far outweighed the return generated by the textile side of the company.
