By: Robert G. Hagstrom
ISBN 978-0-471-74367-5
Book Price: $15.99
Best Selling Professional Portfolio Manager
Robert G. Hagstrom is a Senior Vice President of Legg Mason Capital Management and a Portfolio Manager of the Legg Mason Growth Trust. He is a member of the CFA Institute and the Financial Analysts of Philadelphia. His best-selling book The Warren Buffett Way (First Edition) spent 21 weeks on The New York Times Best Seller List.
The biggest investor in history
Robert G. Hagstrom reveals the successful investing principles of one of history’s greatest investors. 12 chapters show the largest investor in the world (Ch. 1), buying a business (Ch. 4); Business Investment Guidelines (Ch. 5), Management (Ch. 6), Finance (Ch. 7), Value (Ch. 8), Portfolios (Ch. 10), The Psychology of Money (Ch. 11) and more .
Buffett’s Key Investment Practices
Robert G. Hagstrom’s background in finance allows him to express Buffett’s practices clearly and simply. Knowledge of Buffett’s practices also marks his eligibility. He states, “We know Buffett’s preference is 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 by seeing his mentor, Benjamin Graham. He takes his time to define Graham’s own Buffet principles. He states: “A true investment must have two qualities: some degree of principal security and a satisfactory rate of return.” Seeing Buffet’s roots, he locates his beliefs.
Throughout this book, Robert uses selected quotes from Buffett to solidify his investing principles. He quotes Buffett as saying, “It is much 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 guidelines for budding investors. Hagstrom quotes Buffett again as saying, “Buying stocks means buying a business, and it requires the same discipline.” Research is seen as the key to success.
Addressing the questions Buffett is asked reveals Buffett’s key practices. A question about companies Buffett will buy in the future reveals: “…avoid commodity companies and managers I have little confidence in… It should be a type of company he understands, with good economics.” and run by trusted managers. .”
Warren Buffett’s Practices Revealed
Robert G. Hagstrom reveals Warren Buffett’s successful investment practices so readers can build on his success.
Success Step: List 3 things Warren Buffet looks for in a company before investing in a publicly traded stock.
