The Warren Buffett Way: The World’s Greatest Investor

Index 241

and Wells Fargo, 67
white knight, 152
and Williams, 27, 28 (see also
Williams, John Burr)
Buffett Partnership (1950s, 1960s),
2–4, 29
Business(es)/company(ies):
basic characteristics to look for,
62–79
f inding outstanding, 61– 62
management tenets, 59, 62
research into, 63
Business tenets, 59, 61–79
Buying decision, 173

Candor, 94 –96
Capital asset pricing model, 164
Capital Ideas( Bernstein), 21–22
Cases in Point:
Benjamin Moore, 65– 66
Fruit of the Loom, 86–89, 137–138
Justin Industries, 72–76
Larson-Juhl, 132–134
Cash f low, 113–114
Certainties, buying, 7
Chace, Ken, 29
Champion International, 152
Chippewa, 73
Christopher, Doris, 48–49, 79, 94,
116
Circle of competence, 8, 19, 63,
123–124
Clayton, James, 45–46, 101
Clayton, Kevin, 46
Clayton Homes, 45–47, 70, 99–101
acquiring, 138
compensation of salespeople, 101
Coca-Cola, 7, 8, 24, 51–52, 64,
68– 69, 77–78
buyback, 90
dividends, 96
and institutional imperative, 99
market value, 118

owner earnings, 114

prof it margins, 116, 124

return on equity, 111

strategy for the 1980s, 111–112

value of, 124 –127, 134 –135

Columbia Business School, 2

Commodity business, 71, 77

Consistency, 67–70

Convertible preferred stocks,

151–155

Cooper, Sheila O’Connell, 49

Corporate governance, 105–106

CORT Business Services, 45

Costs/expenses, 17

Covariance, 164

Cowles Media, 54

Cuniff, Rick, 169

Davidson, Lorimer, 32

Davis, Edwin, 22

Dempster Mill Manufacturing, 25

Depth of management, 18

Director negligence, 105–106

Discounted net cash-f low analysis,

20 –21

Diversif ication, 165–166

Dividends, 20 –21, 89–90

Washington Post Company, 92–93

Dodd, David, 12, 166–167

Dorr, James J., 138

Dynergy, 153

Economic goodwill, 71, 78

Education of Buffett, 11–28

Eff icient market theory ( EMT), 164

Equity f inancing, 17–18

Fama, Eugene, 20, 164

Farley, William, 86

Fear and greed, effects of, 26

Featherlite Building Products

Corporation, 75

Financial tenets, 59, 109–119