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Warren Buffett Speaks: Wit and Wisdom from the World’s Greatest Investor

Book Description

When Warren Buffett Speaks. . . people listen.

"If people want to improve their investing skills, it has to help to study how the Master does it. This short book outlines Buffett's philosophy and techniques."
—Peter S. Lynch, Fidelity Investments

"Common sense with a deft irony . . ."
—John C. Bogle, founder of The Vanguard Group and author, The Little Book of Common Sense Investing

"It was Warren Buffett's thoughts and philosophy that first captivated investors. Janet Lowe has done us all a great service by collecting and arranging Warren Buffett's wit and wisdom in an easy-to-read and enjoyable book."
—Robert G. Hagstrom, Portfolio Manager, Legg Mason Growth Trust mutual fund, and author, The Warren Buffett Way, Second Edition

"A must-read. Buffett's wit and wisdom is a roadmap for anyone looking to succeed in business, investing, and life."
—Steve Halpern, Editor,

Table of Contents

  1. Copyright
    1. Dedication
  2. Acknowledgments
  3. Introduction
  4. About Life
    1. Omaha? Omawhere? Omawhat?
    2. Live How You Want to Live
    3. Eat What You Want to Eat
    4. Have a Hobby
    5. Be Passionate
    6. Aim High
    7. Aim Well
    8. Focus on Your Goals
    9. Keep Life in Perspective
    10. Be Honest
    11. Tell the Whole Truth, Please
    12. Letter to the Wall Street Journal
    13. Cultivate Good Character
    14. Believe in Yourself
    15. But Don’t Get Too Stuck on Yourself
    16. Dodge the Hype
    17. Share Your Wisdom
    18. Disregard Old Age
  5. About Friends
    1. Know What Friendship Is
    2. Go to Bat for Your Pals
    3. Guiding Governor Schwarzenegger
    4. Build Lifelong Friendships
  6. About Family
    1. Don’t Spoil Your Kids
    2. The Buffett Children
      1. Susan A. Buffett (Little Suzie)
      2. Howard Graham Buffett
      3. Peter Buffett
    3. Work Things Out with Your Wife
    4. Be Kind to Your Mother
  7. About Work
    1. Work for the Fun of it
    2. Start Early
    3. Work Where you Want to Work
    4. Work with Good People
    5. Give a Pat on the Back
    6. Be Loyal to Your Partners
    7. Guard Your Time
    8. Know When to Quit
  8. About Running a Business
    1. Communicate Well
    2. Know When to Say No
    3. Set an Example
    4. Take Care of Shareholders
    5. Hire Well, Manage Little
    6. Put a Premium on Experience
    7. Be Smart about Allocating Capital
    8. Be Brave
    9. Use Crossover Skills
    10. The Mighty Machine Called Berkshire Hathaway
  9. About Investing
    1. Have a Philosophy
    2. Recognize the Enemy: Inflation
    3. Experience Epiphany
    4. Never Mind What the Professors Say
    5. Meet Mr. Market—Your Servant, Not Your Guide
    6. Ignore Mr. Market’s Moods
    7. Listen for Opportunity’s Call
    8. Know the Difference Between Price and Value
    9. Seek Intrinsic Value
    10. Expect to be Out of Step
    11. Earnings, Earnings, Earnings
    12. Look Forward, Not Back
    13. Avoid Risk
    14. Don’t Gamble
    15. Watch for Unusual Circumstances
    16. Don’t be Surprised by Circumstances
    17. Avoid Excessive Debt
    18. Look for Screaming Bargains
    19. Arbitrage When Possible
    20. Be Patient
    21. Think for Yourself
    22. Have the Right Tools
    23. Be Wary of Wall Street
    24. Only Buy Securities that You Understand
    25. An Old Dog Prowls New Markets
    26. Petrochina
    27. An Expanding Circle of Competence
    28. Buy Reading Glasses
    29. Become an Investigative Reporter
    30. Keep it Simple
    31. Think Big
    32. Know What you’re Looking for
    33. Don’t Sweat the Math
    34. Admire Frugality
    35. Set Realistic Goals
    36. Face Facts
    37. Expect Change
    38. Be Capable of Change
    39. Admit Your Mistakes
    40. No Thumb Sucking
    41. Join AA (Airlines Anonymous)
    42. Learn from Your Mistakes
    43. Buy Storybook Stocks
    44. Seek Excellent Companies
    45. Stick with Quality
    46. Junk Bonds
    47. Appreciate Franchise Value
    48. Respect Pricing Power
    49. Find a Company with Cheap Float (Then Try to not Misplace the Company)
    50. Learn to Like Monopoly
    51. Find Managers Who Think Like Owners
    52. Management is Important, but a Good Company is More Important
    53. Avoid the Institutional Imperative (the Tendency for Corporations to Act Like Lemmings)
    54. Favor Companies that Repurchase Their Own Stock
    55. Don’t Worry About Diversification
    56. Invest for the Long Term
    57. To Sum Up
    58. And When You’ve Become Wealthy by Following in the Footsteps of Buffett, Pay Your Dues to Society
    59. Investing is One Way of Contributing to the Public Well-Being
    60. When Rewards are Disproportionate
    61. Pay your Taxes and Don’t Complain
    62. Give As Generously As You Receive
    63. Thoughts on Charitable Giving
    64. Will Buffett’s Gift Affect the Company?
    65. The Last Word
  10. Berkshire’s Book Value vs. the S&P 500
  11. Berkshire Hathaway Share Price
  12. Time Line
    1. The Warren Buffett and Berkshire Hathaway Saga
  13. Endnotes
    1. Introduction
    2. About Life
    3. About Friends
    4. About Family
    5. About Work
    6. About Running a Business
    7. About Investing
  14. Permissions