Warren Buffett Way 2ND Edition

A decade has passed since the book that introduced Warren Buffett to the world–The Warren Buffett Way by Robert Hagstrom–first appeared. Since then, Buffett has solidified his reputation as the greatest investor of all time–quietly amassing a multibillion-dollar fortune, despite the wild fluctuation of the markets.

Although Buffett has claimed time and again that what he does is not beyond anybody else’s competence, some people still do not understand how this value investing legend can consistently perform so well. That’s where Robert Hagstrom and the Second Edition of The Warren Buffett Way come in. This completely revised and updated look at the Oracle of Omaha encompasses Buffett’s numerous investments and accomplishments over the past ten years, as well as the timeless and highly successful investment strategies and techniques he has always used to come out a market winner.

Rather than presenting Buffett’s strategies by stock purchases–as he did in the first edition–Hagstrom makes "Buffett’s Way" more accessible to you, the individual investor, by presenting Buffett’s basic tenets of investing and illuminating these principles with relevant and up-to-date examples from Buffett’s investments, including common stocks, private companies, and high-yield bonds.

Standing far above the market madness, this timely guide distills the wisdom and insight of the world’s greatest investor. It skillfully . . .

• Presents a brief history of Buffett from boyhood to Berkshire Hathaway, and reveals the individuals and events that shaped his investing philosophy
• Outlines the business, management, finance, and value tenets that make up the core of Buffett’s investing approach
• Examines Buffett’s ongoing process of managing a portfolio from knowing which stocks to hold, and for how long, to deciding if, when, and how to cash out some investments and move into others
• Discusses the psychology of money and how Buffett uses this concept to avoid common investment mistakes and recognize other people’s mistakes in time to profit from them

Change is constant, but the investment principles outlined in this book have remained the same. In an environment that seems to favor the speculator over the investor, Buffett’s investment advice has proven, time and again, to be a safe harbor for millions of lost investors. No one understands Warren Buffett like Robert Hagstrom, and in the Second Edition of The Warren Buffett Way, Hagstrom will help you–whether you’re a seasoned investor or just getting started–understand and employ the investment strategies that have made Buffett so successful for over five decades.

Buffett is back . . . and better than before!

A decade has passed since the book that introduced the world to Warren Buffett — The Warren Buffett Way by Robert Hagstrom — first appeared. That groundbreaking book spent 21 weeks on the New York Times Hardcover Nonfiction Bestseller list and sold over 1 million copies.

Since then, Warren Buffett has solidified his reputation as the greatest investor of all time — becoming even richer and more successful, despite the wild fluctuation of the markets. How does this value investing legend continue to do it? That's where Robert Hagstrom and the Second Edition of The Warren Buffet Way come in. This edition is a completely revised and updated look at the Oracle of Omaha — comprising Buffett's numerous investments and accomplishments over the past ten years, as well as the timeless and highly successful investment strategies and techniques he has always used to come out a market winner. This edition is especially accessible as Buffett's basic tenets of investing are presented and illuminated with relevant and up to date examples.

Order your copy today!

ROBERT G. HAGSTROM is Senior Vice President of Legg Mason Capital Management and the portfolio manager of the Legg Mason Growth Trust. He is a member of the CFA Institute and the Financial Analysts of Philadelphia. The Warren Buffett Way sold more than 1,000,000 copies worldwide and spent twenty-one weeks on the New York Times bestseller list. Robert lives with his family in Villanova, Pennsylvania.

Foreword to the Second Edition vii
Bill Miller

Foreword to the First Edition ix
Peter S. Lynch

Preface xv

Introduction xix
Kenneth L. Fisher

1 The World’s Greatest Investor 1

2 The Education of Warren Buffett 11

3 "Our Main Business Is Insurance": The Early Days of Berkshire Hathaway 29

4 Buying a Business 41

5 Investing Guidelines: Business Tenets 61

6 Investing Guidelines: Management Tenets 81

7 Investing Guidelines: Financial Tenets 109

8 Investing Guidelines: Value Tenets 121

9 Investing in Fixed-Income Securities 141

10 Managing Your Portfolio 157

11 The Psychology of Money 177

12 The Unreasonable Man 189

Afterword: Managing Money the Warren Buffett Way 199

Appendix 211

Notes 225

Acknowledgments 235

Index 239