Download The Warren Buffett Way: The World’s Greatest Investor PDF
Almost exactly twenty years ago, while training to become an investment broker with Legg Mason, I received a Berkshire Hathaway annual report as part of the training materials. It was my very first exposure to Warren Buffett.
Like most people who read Berkshire’s annual reports, I was instantly impressed with the clarity of Buffett’s writing. As a young professional during the 1980s, I found that my head was perpetually spinning as I tried to keep up with the stock market, the economy, and the constant buying and selling of securities. Yet, each time I read a story about Warren Buffett or an article written by him, his rational voice seemed to rise above the market’s chaos. It was his calming influence that inspired me to write this bookThe Warren Buffett Way: The World’s Greatest Investor.
The principal challenge I faced writing The Warren Buffett Way was to prove or disprove Buffett’s claim that “what [I] do is not beyond anybody else’s competence.” Some critics argue that, despite his success, Warren Buffett’s idiosyncrasies mean his investment approach cannot be widely adopted. I disagree. Warren Buffett is idiosyncratic—it is a source of his success—but his methodology, once understood, is applicable to individuals and institutions alike. My goal in this book is to help investors employ the strategies that make Warren Buffett successful.
The Warren Buffett Way describes what is, at its core, a simple approach. There are no computer programs to learn, no two-inch-thick investment manuals to decipher. Whether you are financially able to purchase 10 percent of a company or merely a hundred shares, this book can help you achieve profitable investment returns.
But do not judge yourself against Warren Buffett. His five decades of simultaneously owning and investing in businesses make it improbable that you can imitate his historical investment returns. Instead, compare your ongoing results against your peer group, whether that group includes actively managed mutual funds, an index fund, or the broader market in general.
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