Buffettology by Mary Buffett and David Clark
Summary: Buy This Book! You will find that you really can learn lots about how Warren Buffett thinks about, invests in and manages businesses.
As far as I am concerned, Buffettology by Mary Buffett and David Clark, is a truly excellent book about investment in general and Warren Buffett in particular.
The book is designed to teach his methods rather than be a biography or full of witty anecdotes. In truth, there were a few parts of the book which I did not manage to understand - even with my calculator in hand. I came to the conclusion that this is why he is Warren Buffett and I am not...
These few complexities aside, there can be few books ever written which explain more about successful investing. Buffettology has an interesting inside viewpoint which offered access most will never have - and had not had before this book was published in 1997.
Do not be fooled though. Investment is work and this book will need work and effort to understand. It will teach any investor how to work in the most effective way possible.
In short, it explains the criteria that should be used for business analysis and how to filter through all the companies available to find the gems that fit the ideal form. Using this book cannot help you but improve! That is quite a claim.
For example, there is a lengthy discussion of the economic differences between 'commodity' type and 'consumer monopoly' type businesses. It is explained, by using Berkshire Hathaway as an example, how some business models are virtually doomed - no matter how great company management may be.
The advantages that this one idea can provide to an investor. Why? Because Buffett learned the hard way that some businesses are so difficult to run - because of the market that they operate in - that no management is capable of making a profit. Berkshire Hathaway was originally a textile manufacturer and no matter what Buffett tried, the economies of the textile industry overpowered his skills.
All of this said, the follow-up book 'The New Buffettology' - which I did not buy or read - struck me as an oddity. It had taken decades to have Buffett's techniques revealed, and it seemed odd that there was suddenly more to learn.
Enough of my cynicism...
This book is a MUST READ for every investor. It is as important as that. If you want to improve your results and increase profits whilst reducing your risks - buy Buffettology and apply it's teachings.
To read more book reviews, please visit:
Warren Buffett Book Reviews
The Intelligent Investor by Benjamin Graham
Warren Buffett Speaks by Janet Lowe
Buffett The Making Of An American Capitalist by Roger Lowenstein
The Warren Buffett Way by Robert Hagstrom
The Essays of Warren Buffett: Lessons for Investors and Managers by Lawrence Cunningham
The Tao Of Warren Buffett by Mary Buffett and David Clark