Investing Book Review – The Warren Buffett Way (Second Edition)

Source by Dr. Steven J. Lynne

By: Robert G. Hagstrom

ISBN 978-0-471-74367-5

Book Price: $15.99

Bestselling Professional Portfolio Manager

Robert G. Hagstrom is Senior Vice President of Legg Mason Capital Management and portfolio manager of the Legg Mason Growth Trust. He is a member of the CFA Institute and the Financial Analysts of Philadelphia. His bestselling book The Warren Buffett Way (First Edition) spent 21 weeks on the New York Times bestseller list.

History’s greatest investor

Robert G. Hagstrom reveals successful investing principles of one of history’s greatest investors. 12 chapters view the world’s greatest investor (Ch. 1), buying a business (Ch. 4); Investment guidelines of business (Ch. 5), Management (Ch. 6), Financials (Ch. 7), Value (Ch. 8), Portfolios (Ch. 10), the psychology of money (Ch. 11), & more.

Buffett’s Key Investing Practices

Robert G. Hagstrom’s background in finance allows him to express Buffet’s practices with clarity and simplicity. Knowledge of Buffett’s practices also marks his eligibility. He states, “We know it is Buffett’s preference to “buy certainties at a discount… ” We also know Buffett’s discipline of operating only within his “circle of competence.”

Hagstrom takes time to explore Warren Buffett’s background through viewing his mentor, Benjamin Graham. He takes time to define Graham’s principles, sown into Buffet. He states, “A true investment must have two qualities-some degree of safety of principal and a satisfactory rate of return.” Viewing Buffet’s roots, locates his beliefs.

Throughout this book, Robert uses selected quotes from Buffett to solidify his investing principles. He quotes Buffett saying, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Brief quotes from Buffett also serve as directives to budding investors. Hagstrom again quotes Buffett saying, “Buying stocks means buying a business and requires the same discipline.” Research is seen as a key to success.

Addressing questions asked of Buffett reveals Buffett’s key practices. A question about companies Buffett will buy in the future reveals, “… avoid commodity businesses and managers that I have little confidence in… It must be a type of company that he understands, possessing good economics, and run by trustworthy managers.”

Warren Buffett’s Practices Revealed

Robert G. Hagstrom reveals Warren Buffett’s successful investing practices for readers to grow in their success.

Success Step: List 3 things that Warren Buffet looks at in a company before he invests in its public traded stocks.

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