Buffettology

[TheCrack]

Buffettology - By Mary Buffett
Although I first thought that because Mary is the Ex Daughter in Law of Warren Buffett, that she was just trying to cash in on "what she thinks she knows about Warren and his techniques", I found this to be a very educational book....

I had only read Rule # 1 prior to this, and this book was a great follow up to it for me. Alot of similarities in what Mary describes as Warrens ways(Moat/consumer monopoly etc) and what is in Phils book....
Good case studies at the end and alot of opportunities to practice simple calculations for determining Rates of return etc....

Intentionally concise and short chapters allowed me to fly thru this book, and enjoy it....

For me, it was a good, educational easy read, and I find myself going back to it often for reference....

[steve44]

Hi all,

On the subject of MR. Buffett - I found the below info at link http://moneycentral.msn.com/content/...cks/P90537.asp


Geting inside Buffett’s head:

Buffett hasn’t yet written a book describing how he picks stocks, but he gives tantalizing hints in his “Chairman’s Letter” that accompanies each Berkshire annual report. You can download the letters going back to 1977 from the Berkshire Hathaway site. http://www.berkshirehathaway.com

For best results, plan on spending some time getting familiar with Buffett’s thinking through his letters or by reading a book on the topic. Countless authors have penned books purporting to describe Buffett’s stock-picking strategies. Those by mutual fund manager Robert Hagstrom and by Buffett’s ex-daughter-in-law, Mary Buffett, generally get the best reviews. Hagstrom's most recent title is “The Essential Buffett: Timeless Principles for the New Economy.” From Mary Buffett, look for "The New Buffettology."

Although Buffett trained under legendary value guru Benjamin Graham, he pays as much attention to a company’s products, profitability, growth prospects and management quality as he does to valuation.

In a nutshell, Buffett strives to identify highly profitable companies capable of generating strong future earnings growth. To that end, he looks for companies with a “sustainable competitive advantage,” which, for him, usually translates to a strong brand name. Stocks such as McDonald’s, Gillette (G, news, msgs) and H&R Block (HRB, news, msgs), all major Berkshire holdings, are examples.

Buffett doesn’t look at analysts’ forecasts to predict future growth. Instead, he relies on the company’s historical results. This requires an in-depth understanding of its business plan. He seeks out companies with strong management and demonstrated expertise in their industry. Conversely, he avoids companies that expand outside their area of expertise.

Just fyi

Thanks

Steve

[TheCrack]

Great FYI and info steve44....
Thanks....

[trymuthu]

I highly recommend this book. In couple examples she shows how Buffett would predict EPS of the company would grow and compare that with actual numbers. Pretty amazing to see how earnings can be predicted to the penny with such simplicity.

[bigroof]

I read The New buffettology. I thought it was great, now I'm working through The New Buffettology Workbook, it seems to be great too

only problem is the authors give the math examples using a Texas Instruments BA-35 financial calculator --which is not made anymore replaced by another model with DIFFERENT buttons

so I have no clue about how to repeat the math computations using the calculator

If anyone can help with the Buffettology math, I'd sure appreciate it.

other that that I highly recommend the books

[AlexG]

I read several reviews criticizing this book. Many have accused the author of abusing her last name to profit off the Buffett name. I will take your guy's qord for it and check out from the local library or something.