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However, the drawbacks are also obvious. The word "New" doesnot really represent a really new buffettology; and it is too wordy. The length of the book can be reduced to at least 70% of its length now. Some of the sentences have been repeated by too many times.(which is just to make the book thicker, and more expensive:P)
All_in_all, it is a 3-4 stars book and especially good for beginners. A useful but not a great book.
By reading the negative reviews of this book and its original you will find that this is a book written to be easily read. The authors did a great job of cleaning up the the "I knew Warren" tone of the first book.
The only drawback of this book is its over-simplifying the complications that can occur when you do a value approach - particularly when you look at real data. Still, this new book gives many examples to walk the reader through the methodology.
There is no statistical results shown that this method does indeed beat the market. You have to take it on faith that this methodology is used by Buffet, that it is what produced his great success, and that it can be duplicated in today's market.
Still, this is a great book, and I recommend it to investors, and to businessmen who need to understand more about "durable competitive advantage" and the kinds of businesses they should be creating. There is much more that needs to be said about competitive advantage. There are several books on this (starting with Michael Porter). This book gives a simplified version.
I think it is important to know that Buffet is not a Jack Welch type of manager. I would say he is closer to a Harold Geneen in that he is more of a "rentier" than a get-in-the-trenches manager/leader like Welch. This effects his choice of businesses. His approach is to own the only gravel pit in the county, and milk it for many years. This is certainly a good approach, but one that is difficult to pull off because a competitive advantage is difficult to hold on to.
It appears that significant monies were made by Buffet using investments not following this method (hedging, speculating on interest rates). These have provided buffers against when the value investing techniques didn't work.
Perhaps most important in the author's and Buffet's approach is the use of stock selection criteria that are outside of the radar of the average investor. And, that criteria is the screening on "durable comepetive advantage." Few investors screen stocks on this qualitative data. If this criteria indeed selects successful companies then you will do better than those without this information (assuming you buy right).
After reading this book, you can find out more on competitive advantage and stock prices by reading the books by A. David Silver (Quantum Companies). He is one of my favorite authors on durable competitive advantage. You should also read some of the recent books on how to research companies, like the one by Hoover.
There are many books on value investing. There is even a "Dummies" book on it. All of these are recommended because you will find that there can be a lot more to it than presented in this book. I would think that some kind of value investing test should be a requirement for all CEO's. Hopefully such a focus would keep certain CEO's and their partners-in-crime (CFO's) from focusing on hyping up the stock price through fraud, and get back to producing real business results. This book does not tell you how to detect puffed up earnings and fraudulent balance sheets. You'll need to read other value investing books for this.
Overall, I believe that if you follow the simple formulas in this book, you will find good value stocks. Buy this book, rather than the other previous ones.
John Dunbar
Sugar Land, TX
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Each chapter ends with a few rather simplistic questions, and a review of each chapter "key points". Many if not all of the same mistakes - both financial and grammatical are repeated in this second book.
Unlike her first book - Buffettology - Mary Buffett does include a few case studies at the end of the book as they relate to actual stock purchases by Warren Buffett.
Beginner and serious devotees of Warren Buffett's investment style are better served with her first book, or better still by reading Warren Buffett's letters to shareholders or any of the other fine books on the same subject matter. Investors can skip this workbook.
The book is broken down into 23 chapters, each no more than a few pages, so you can read a chapter a day (and continue to review the chapters for the rest of your investing career). The first seven chapters give a breakdown of Warren's investment philosophy, value investing. Here, you learn about the short-sightedness of the market and the bad news phenomenon. Also, the authors identify the difference between commodity-type businesses and consumer monopolies, and tell you why it's far better to own consumer monopolies. Once you understand these concepts, you're halfway toward success as an investor. Now, you need to learn how to identify the correct buying opportunity. That's where the true value of this book comes into play, offering formulas and equations you won't find most books.
The remaining chapters in the book focus on the examination of financial statements, the acquisition of pertinent information (what's important and what's not), then they tell you how determine an investment's desirability. You'll learn the value of high rates of return on shareholder equity, how to measure management's ability to utilize retained earnings, and Warren's ideas for the Internet and short-term arbitrage commitments.
I read this book beginning to end the day I got it, but I'll continue to familiarize myself with its formulas for the rest of my investing career. Although it marks only the beginning of one's investment knowledge, learning these bedrock principles are what separate successful investors from mere average ones... Buy this book!
Britt Gillette
Author of "Conquest of Paradise: An End-Times Nano-Thriller"
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His later book _Jacob, Manahem, and Mimoun_ fulfills that duty in a fuller way, though that book, too, is about the failure to create the literary masterpiece he always expected from himself. Bénabou (and/or his narrator) has conceived many masterpieces, but shied away from apprentice works, or, indeed, from writing more than a few pages of any of his grand designs. "What had been a confident wait imperceptibly transformed itself into torpor."
The book about his nonbooks (the books he didn't write) starts over and starts over and starts over, but, aided by some very apposite quotations about writing from myriad other writers, details the ultimately impossible love of an author who can not bring himself to besmirch beautiful virgin sheets of white paper even to create the literature that would redeem his claim to be a writer.
In addition to the universal reasons for putting off writing (especially the ease of reading instead: Bénabou characterizes his compulsive reading as a form of bulimia), a French writer has to beware the "reigns of theoretical terror which generally crop up in the most protected circles and make of reality the negligible byproduct of a few concepts."
Many people have realized that being unsuited for writing and even unable to string more than a few words together does not remove the desire to be a writer. Without venturing beyond the struggle with writing (to the absurd lot of blocked writers such as Anthony Burgess' Enderby or Michael Chabon's Grady Tripp) Bénabou makes being a writer who does not and cannot write archly funny and even poignant.
I characterize it as a "sort of novel" because nothing happens, not even a change of consciousness of the narrator. The "somewhat autobiographical" links to the lost Moroccan Jewish world, and, perhaps, to not being able to write anything remotely conventionally a novel. However, Bénabou, who has earned his living as a professor of ancient history, published a book in 1976 on African resistance to the Roman Empire, and had published another eight as the 'Definitely Provisional Secretary' of Ouvroir de Littrature Potentielle (the Workshop of Potential Literature founded in 1960 by the playful Raymond Queneau and of which the master of metafiction, Italo Calvino, joined), so was not so blocked as the narrator of _Why_.
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When I originally read this book I thought that Mary Buffett might just be using her name to make a quick buck. I was wrong. She (along with Buffettologist David Clark) know what the financial arena is composed of, and how to exploit it. As an added bonus this book provides a glimpse into Warren Buffetts private life and the origins of his investment philosophy. It even deals with Grahams philosophy of buying whatever is "on sale."
In the back of the book is a chapter devoted to the companies that Buffett is looking at. While it is approximately 4-5 years since this book went into publication, these companies are still very good to start a portfolio with.
Warren Buffett was asked once, "When is the best time to sell?" His reply followed suit with one of his personal heroes, "Never!" Imagine the security in knowing that you didn't have to worry about the short-term market as long as over the long-term you were virtually guaranteed to do very well.
A great investment book.
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The Warrens are a devout couple who have made it their life long goal to assist clergymen in the rescue of people afflicted or possessed by demonic spirits. Another book, and I think their best book by far, is the Demonologist by Gerald Brittle which deals with demonic cases. Unfortunately the book is out of print. If you can find it, buy it because it is well written and exciting and at the same time sobering to read.