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Warren Buffett on Business: Principles from the Sage of Omaha

Book Description

The proven business principles of Warren Buffett

Warren Buffett is one of the most admired and prolific investors and managers in corporate America. Warren Buffett on Business is a timeless guide to strategies that can help you run a successful business. This book is a one-of-a-kind collection of Buffett's letters to the shareholders of Berkshire Hathaway written over the past few decades, and in a clear, simple style distills the basic principles of sound business practices.

Through Buffett's own remarkable words, this practical management handbook shares valuable insights on communicating with, and treating employees and shareholders fairly; responsible corporate governance; ethical behavior; patience and perseverance; admitting mistakes; and having a passion for work.

  • Contains priceless pearls of business and management wisdom, woven into a delightful narrative

  • Designed in an accessible manner and organized by business and management topics with strong lessons from Buffett

  • Provides direct, hands-on information on major topics concerning managers, entrepreneurs, business students, and anyone interested in business

Informative and inspiring, this unique book puts Warren Buffett's business beliefs in perspective.

Table of Contents

  1. Copyright
  2. Dedication
  3. Dedication1
  4. Acknowledgments
  5. Introduction
  6. Shareholders as Partners
  7. Corporate Culture
    1. Give Warren a Call
    2. Some Thoughts on Selling Your Business*
  8. Corporate Governance
    1. Accountability and Stewardship
    2. The Audit Committee
  9. Berkshire Managers
    1. "How Do You Know When You're Dealing with an Honest Person?"
  10. Communication
    1. Full Disclosure—Both the Good and the Bad
  11. Acquisition of Nebraska Furniture Mart: "The Amazing Mrs. B"
    1. A Business Story Like No Other
  12. Acquisition of GEICO: "The Security I Like Best"
  13. Acquisition of General Reinsurance: 2002–2006
    1. Derivatives
  14. The Assessment and Management of Risk
  15. Executive Compensation
  16. Time Management
  17. How to Manage a Crisis: Warren Buffett's Wild Ride at Salomon
    1. Background
    2. Contrition
    3. Full Disclosure
    4. A Second Job
    5. A Plan of Action
    6. The Salomon Interlude
    7. Lessons Learned According to Charlie Munger
    8. Lessons Learned According to Buffett
  18. Management Principles and Practices
    1. Long-Term Economic Goals
    2. Measuring Managerial Economic Performance
    3. Businesses—the Great, the Good, and the Gruesome
    4. Cost of Capital
    5. Capital Allocation
    6. Dividend Policy
    7. Franchises, Businesses, and Moats
    8. Acquisition Policies
    9. Planning and Administrative Practices
    10. Hiring Policies
    11. Debt and Costs
    12. Stock Ownership and Stock Activity
  19. Executive Behavior
  20. Mistakes I've Made
    1. Mistakes of the First Twenty-Five Years (A Condensed Version)
    2. Mistake Du Jour
  21. Personal Investing
    1. The Only Investment Advice You Will Ever Need
    2. Aesop's Investment Axiom
    3. How We Think About Market Fluctuations
    4. Excerpt from the Warren Buffett Article, "The Superinvestors of Graham-And-Doddsville"
  22. Buffett, the Teacher
    1. Cynthia Milligan Interview
    2. Speech before University of Florida MBA Students—September 4, 2006
  23. Humor and Stories
  24. Warren E. Buffett, A Chronological History: (A Condensed Version)
    1. 1930–1931
    2. 1936
    3. 1942
    4. 1943
    5. 1945–1947
    6. 1949–1950
    7. 1951
    8. 1952
    9. 1954
    10. 1956
    11. 1957–1969
    12. 1970
    13. 1971
    14. 1973
    15. 1974
    16. 1976
    17. 1977–1987
    18. 1988–1989
    19. 1990
    20. 1991–1992
    21. 1993–2001
    22. 2002–2007
    23. 2004
    24. 2005
    25. 2006
    26. 2007
    27. 2008
  25. Berkshire Hathaway Inc., An Owner's Manual, Owner-Related Business Principles, January 1999
    1. Owner-Related Business Principles
    2. Two Added Principles
    3. The Managing of Berkshire
  26. Berkshire Hathaway Inc., Code of Business Conduct and Ethics
    1. A. Scope
    2. B. Purpose
    3. C. Ethical Standards
    4. D. Waivers
    5. E. Violations of Ethical Standards
    6. F. Compliance Procedures
  27. July 23, 2008, Memo to Berkshire Hathaway Managers
  28. Berkshire Hathaway Inc., Corporate Governance Guidelines, as Amended on February 27, 2006
    1. 1. Director Qualifications
    2. 2. Board Size and Committees
    3. 3. Voting for Directors
    4. 4. Director Responsibilities
    5. 5. Director Access to Management and Advisors
    6. 6. Board Meetings
    7. 7. Executive Sessions
    8. 8. Director Compensation
    9. 9. Orientation and Continuing Education
  29. Intrinsic Value
  30. The Superinvestors of Graham-and-Doddsville: by Warren E. Buffett
  31. Berkshire's Corporate Performance versus the S&P 500
  32. Berkshire Hathaway Common Stock
  33. Notes
  34. About the Author