The Warren Buffett Way: The World’s Greatest Investor

(Rick Simeone) #1

226 NOTES



  1. Ibid., 151.

  2. Ibid., 153.

  3. Quoted on http://www.moneychimp.com.

  4. Bernstein, Capital Ideas,162.

  5. Andrew Kilpatrick, Of Permanent Value: The Story of Warren Buffett
    ( Birmingham, AL: AKPE, 2000), 89.

  6. Munger’s sweeping concept of the “latticework of mental models” is the
    subject of Robert Hagstrom’s book Investing: The Last Liberal Art(New
    York: Texere, 2000).

  7. A frequent comment, widely quoted.

  8. Robert Lenzner, “Warren Buffett’s Idea of Heaven: ‘I Don’t Have to Work
    with People I Don’t Like,’ ” Forbes(October 18, 1993), 43.

  9. L. J. Davis, “Buffett Takes Stock,” New York Timesmagazine (April 1,
    1990), 61.

  10. Ibid.

  11. Berkshire Hathaway Annual Report, 1987, 15.

  12. Berkshire Hathaway Annual Report, 1990, 17.

  13. Benjamin Graham, The Intelligent Investor,4th ed. (New York: Harper &
    Row, 1973), 287.
    23.Adam Smith’s Money World,PBS, October 21, 1993, quoted in Kilpatrick,
    Of Permanent Value(2004), 1337.

  14. Warren Buffett, “What We Can Learn from Philip Fisher,” Forbes(Octo-
    ber 19, 1987), 40.

  15. “The Money Men—How Omaha Beats Wall Street,” Forbes(November 1,
    1969), 82.


Chapter 3 “Our Main Business Is Insurance”: The Early Days of
Berkshire Hathaway



  1. Berkshire Hathaway Annual Report, 1985, 8.
    2.Warren Buffett, “The Security I Like Best,” The Commercial and Financial
    Chronicle( December 6, 1951); reprinted in Andrew Kilpatrick, Of Perma-
    nent Value: The Story of Warren Buffett,rev. ed. ( Birmingham, AL: AKPE,
    2000), 302.

  2. Berkshire Hathaway Annual Report, 1999, 9.

  3. The purchase price is often quoted as $22 billion, and in a sense that is true.
    The two companies announced in June 1998 that Berkshire would acquire
    all General Re shares at a 29 percent premium over the closing share price,
    by trading an equivalent value in Berkshire stock. But six months passed be-
    fore the deal f inally closed, and by that time both share prices had declined.
    General Re shareholders received $204.40 for each share they owned, rather
    than the $276.50 value the shares had back in June. The actual purchase

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