The Warren Buffett Way: The World’s Greatest Investor

The Unreasonable Man 195 Step Three: Buy a Business, Not a Stock Let’s pretend that you have to make a very important decision. ...

196 THE WARREN BUFFETT WAY measuring your success solely by price change or comparing annual price change to a common stock benc ...

The Unreasonable Man 197 eliminating those things you can get wrong, which are many and per- plexing (predicting markets, econom ...

198 THE WARREN BUFFETT WAY Buffett, over his lifetime, has tried different investment gambits. At a young age he even tried his ...

199 Afterword Managing Money the Warren Buffett Way I began my money management career at Legg Mason in the summer of It was a ...

200 AFTERWORD The message we received throughout the f irst day was both consis- tent and logical. We spent the afternoon analyz ...

Afterword 201 Granted, I had spent the entire day in class analyzing stocks, which I knew were partial ownership interests in bu ...

202 AFTERWORD All the while, I continued to collect Buffett data. Annual reports, magazine articles, interviews—anything having ...

Afterword 203 demonstrate that what Buffett had taught and what I had written, if followed, would allow an investor to generate ...

204 AFTERWORD In 1997, my fund was at the crossroads. If I continued to invest in the traditional Buffett-like stocks, it was li ...

206 AFTERWORD Back then Microsoft was a $22 billion business that most value in- vestors thought was signif icantly overvalued. ...

Afterword 207 these newly created businesses possessed more economic risk than many of the companies Buffett owned. The economic ...

208 AFTERWORD This does not mean we do not have an occasional bad year, bad quarter, or bad month. It simply means when you add ...

Afterword 209 A common thread for outperformance, whether it be for the Super- investors of Graham-and-Doddsville, the Superinve ...

210 AFTERWORD portfolios. When he added the new economic franchises to Berkshire’s portfolio in the 1970s and 1980s, he was stil ...

211 Appendix Table A.1 Berkshire Hathaway 1977 Common Stock Portfolio Number Market of Shares Company Cost Value 934,300 The Was ...

212 Table A.2 Berkshire Hathaway 1978 Common Stock Portfolio Number Market of Shares Company Cost Value 934,000 The Washington P ...

213 Table A.4 Berkshire Hathaway 1980 Common Stock Portfolio Number Market of Shares Company Cost Value 7,200,000 GEICO Corporat ...

214 Table A.5 Berkshire Hathaway 1981 Common Stock Portfolio Number Market of Shares Company Cost Value 7,200,000 GEICO Corporat ...

215 Table A.6 Berkshire Hathaway 1982 Common Stock Portfolio Number Market of Shares Company Cost Value 7,200,000 GEICO Corporat ...