The Warren Buffett Way, 30th Anniversary Edition

PRAISE FOR
THE WARREN BUFFETT WAY "An extraordinarily useful account of the methods of an investor held by many to be the world's greatest."
-The Wall Street Journal "It's first rate. Buffett gets a lot of attention for what he preaches, but nobody has described what he practices better than Hagstrom. A comprehensive primer on applying Buffett's investment strategy. Fascinating."
-Fortune "Simply the most important new stock book.... If you think you know all about Warren Buffett, you have a lot to learn from this book."
-Forbes "Nobody has described what Buffett practices better than Hagstrom."
-Time "Almost anybody curious about the relationship between the behavior of economics, the performance of firms, and the ups and downs of the stock market will find something useful here."
-The Economist

ROBERT G. HAGSTROM is one of the best-known authors of investment books including the New York Times bestseller The Warren Buffett Way and Investing: The Last Liberal Art. He has followed, studied, and written about Warren Buffett since 1984. Robert has over 40 years of experience as a professional investor. He is currently the Chief Investment Officer of EquityCompass Investment Management, LLC and Senior Portfolio Manager of the Global Leaders Portfolio. Robert was the institutional portfolio manager of the Growth Equity Strategy at Legg Mason Capital Management when he received honorable mention as Morningstar's Domestic Stock Fund Manager of the year in 2007.

Foreword to the First Edition ix Foreword to the Second Edition xv Foreword to the Third Edition xvii Preface xxvii Chapter One World's Greatest Investor 1 Understanding Patterns 3 The Making of an Entrepreneur 4 Buffett Limited Partnership 16 Berkshire Hathaway: Compounding Conglomerate 20 Chapter Two The Education of Warren Buffett 25 Howard Homan Buffett: Earliest Influence 26 Benjamin Graham: Developing an Investment Methodology 33 Philip Fisher: Discerning a Good Business 41 Charlie Munger: An Intellectual Perspective 50 Chapter Three Business- Driven Investing 65 Business Tenets 68 Management Tenets 71 Financial Tenets 79 Value Tenets 85 An Intelligent Investor 91 Chapter Four Common Stock Purchases 93 The Washington Post Company 96 GEICO Corporation 107 Capital Cities/ABC 120 The Coca- Cola Company 130 Apple, Inc. 140 The Value of Retained Earnings 159 Chapter Five Managing a Portfolio of Businesses 163 Portfolio Management Today: A Choice of Two 164 A Third Choice: Focus Investing 166 The Superinvestors of Buffettville 170 Three Thousand Focus Investors 181 A Better Way to Measure Performance 185 High Active- Share Investing 200 Chapter Six It's Not That Active Management Doesn't Work 203 High Priests of Modern Finance 204 Efficient Market Hypothesis 218 Investment and Speculation: Understanding the Difference 225 Investing in a Parallel Universe 230 Chapter Seven Money Mind 235 Sportsman, Teacher, Artist 238 Berkshire Hathaway: An American Institution 245 Appendix A Berkshire's Performance versus S&P 500 Index (1965-2022) 251 Appendix B Berkshire's Common Stock Portfolios (1977-2021) 253 Notes 279 Acknowledgments 293 About the Author 297 Index 299