xvi PREFACE
purchase 10 percent of a company or merely a hundred shares, this book
can help you achieve prof itable investment returns.
But do not judge yourself against Warren Buffett. His f ive decades
of simultaneously owning and investing in businesses make it improba-
ble that you can imitate his historical investment returns. Instead, com-
pare your ongoing results against your peer group, whether that group
includes actively managed mutual funds, an index fund, or the broader
market in general.
The original edition of this book enjoyed remarkable success, and I
am deeply gratif ied that so many people found it useful. The success of
The Warren Buffett Way,however, is f irst and foremost a testament to
Warren Buffett. His wit and integrity have charmed millions of people
worldwide; and his intellect and investment record have, for years, mes-
merized the professional investment community, me included. This un-
paralleled combination makes Warren Buffett the single most popular
role model in investing today.
I had never met Warren Buffett before writing this book, and I did
not consult with him while developing it. Although consultation
surely would have been a bonus, I was fortunate to be able to draw
from his extensive writings on investing that date back more than four
decades. Throughout the book, I have employed extensive quotes from
Berkshire Hathaway’s annual reports, especially the famous Chair-
man’s Letters. Mr. Buffett granted permission to use this copyrighted
material, but only after he had reviewed the book. This permission in
no way implies that he cooperated on the book or that he made avail-
able to me secret documents or strategies that are not already available
from his public writings.
Almost everything Buffett does is public, but it is loosely noted.
What was needed, in my opinion, and what would be valuable to in-
vestors, was a thorough examination of his thoughts and strategies
aligned with the purchases that Berkshire made over the years, all com-
piled in one source. And that was the starting point for the original
edition of The Warren Buffett Way.
This revised edition, ten years later, retains that basic goal: to ex-
amine Buffett’s more recent actions for the investment lessons they hold
and to consider whether changes in the f inancial climate have triggered
changes in his strategies.