The Tao of Warren Buffett: A Book Review
Steve Amoia
September 25, 2008
This physically small book delivers a very large message from one of our most admired and analyzed business leaders: Warren Buffett. He earned his billions by investing in conservative companies with strong balance sheets, along with passionate managers and subordinates who focused on the long-term. His company, Berkshire Hathaway, is a sterling example that has rewarded its shareholders for decades.
Collection of 125 Quotes
This book is a collection of 125 of Mr. Buffett's quotes on a variety of topics. The authors, Mary Buffett and David Clark, were a former daughter-in-law, and family friend, respectively. They are best-selling authors of what they term "Buffettology," which is the study of the tremendous investment and business acumen of this intriguing man.
Ms. Buffett and Mr. Clark have organized this book into fourteen chapters. For example, Business, Education, The Workplace, and Why Not To Diversify. You will learn from the wisdom and insights of Mr. Buffett, along with the personal examples from his life that the authors provide after each quote.
Here are a few appetizers from the Oracle of Omaha:
"If Calculus or Algebra were required to be a great investor, I'd have to go back to delivering newspapers."
"Never be afraid to ask too much when selling or offer too little when buying."
"You can't make a good deal with a bad person."
"You should invest like a Catholic marries: for life."
"You should invest in a business that even a fool can run, because some day, a fool will."
"In looking for someone to hire, you look for three things: integrity, intelligence, and energy. But the most important is integrity, because if they don't have that the other qualities, intelligence and energy, are going to kill you."
"It's hard to teach a young dog new tricks."
"Managing your career is like investing. The degree of difficulty does not count. So you can save yourself money and pain by getting on the right train."
"Never ask a barber if you need a haircut."
"Wall Street makes its money on activity. You make money on inactivity."
"Risk comes from not knowing what you are doing."
"I'd be a bum in the street with a tin cup if the markets were efficient."
"What we learn from history is that people don't learn from history."
"We do not have, nor have had, and never will have an opinion about where the stock market, interest rates, or business activity will be a year from now."
Here was my personal favorite:
"It takes 20 years to build a reputation, and 5 minutes to lose it. If you think about that, you will do things differently."
Lofty Share Prices
As of 23 September 2008, the Class A shares of Berkshire Hathaway (BRK-A), closed trading on the NYSE at $128,800 per share. The Class B shares, which were introduced in 1996 (BRK-B), closed the day at $4300. Berkshire Hathaway has never split either class of its stock. That point was not addressed in this otherwise excellent compilation.
For a great philanthropist, businessman, and investment expert such as Mr. Buffett, it seems ironic that most of us can't afford to purchase shares in his company. (Although certain mutual funds do have holdings in Berkshire Hathaway). Wouldn't you want to know his thoughts on that topic? That was one quote I had hoped to see. With or without a stock split, this book will be a blue chip addition to your library. Buying it may be one of your better investment decisions.
Legendary Shareholder Letters
To learn more about Mr. Buffet's investment and economic theories, you can visit the Berkshire Hathaway website that displays his legendary annual shareholder letters.
Collection of 125 Quotes
This book is a collection of 125 of Mr. Buffett's quotes on a variety of topics. The authors, Mary Buffett and David Clark, were a former daughter-in-law, and family friend, respectively. They are best-selling authors of what they term "Buffettology," which is the study of the tremendous investment and business acumen of this intriguing man.
Ms. Buffett and Mr. Clark have organized this book into fourteen chapters. For example, Business, Education, The Workplace, and Why Not To Diversify. You will learn from the wisdom and insights of Mr. Buffett, along with the personal examples from his life that the authors provide after each quote.
Here are a few appetizers from the Oracle of Omaha:
"If Calculus or Algebra were required to be a great investor, I'd have to go back to delivering newspapers."
"Never be afraid to ask too much when selling or offer too little when buying."
"You can't make a good deal with a bad person."
"You should invest like a Catholic marries: for life."
"You should invest in a business that even a fool can run, because some day, a fool will."
"In looking for someone to hire, you look for three things: integrity, intelligence, and energy. But the most important is integrity, because if they don't have that the other qualities, intelligence and energy, are going to kill you."
"It's hard to teach a young dog new tricks."
"Managing your career is like investing. The degree of difficulty does not count. So you can save yourself money and pain by getting on the right train."
"Never ask a barber if you need a haircut."
"Wall Street makes its money on activity. You make money on inactivity."
"Risk comes from not knowing what you are doing."
"I'd be a bum in the street with a tin cup if the markets were efficient."
"What we learn from history is that people don't learn from history."
"We do not have, nor have had, and never will have an opinion about where the stock market, interest rates, or business activity will be a year from now."
Here was my personal favorite:
"It takes 20 years to build a reputation, and 5 minutes to lose it. If you think about that, you will do things differently."
Lofty Share Prices
As of 23 September 2008, the Class A shares of Berkshire Hathaway (BRK-A), closed trading on the NYSE at $128,800 per share. The Class B shares, which were introduced in 1996 (BRK-B), closed the day at $4300. Berkshire Hathaway has never split either class of its stock. That point was not addressed in this otherwise excellent compilation.
For a great philanthropist, businessman, and investment expert such as Mr. Buffett, it seems ironic that most of us can't afford to purchase shares in his company. (Although certain mutual funds do have holdings in Berkshire Hathaway). Wouldn't you want to know his thoughts on that topic? That was one quote I had hoped to see. With or without a stock split, this book will be a blue chip addition to your library. Buying it may be one of your better investment decisions.
Legendary Shareholder Letters
To learn more about Mr. Buffet's investment and economic theories, you can visit the Berkshire Hathaway website that displays his legendary annual shareholder letters.
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