240 INDEX
Bond yields, 124
Bradlee, Ben, 55
Brown-Forman, 99
Buffett, Warren Edward:
and American Express, 91–92
appearance, 4
on arbitrage, 151
on avarice, 102–103
background/education, 2, 11–27
and banking, 67
and Benjamin Moore, 65– 66
and Berkshire Hathaway, 4 –9 (see
alsoBerkshire Hathaway)
and Berkshire Hathaway Reinsurance
Group, 36–37
biographical details, 1–2, 64
on business vs. investing, 61– 62
buying strategy, 130 –131
on candor, 94 –96
certainties, buying on, 7
choosing companies, ways of, 7–9,
61– 62
circle of competence, 8, 19, 63
and Clayton Homes, 70
and Coca-Cola Company (seeCoca-
Cola Company)
on consistency, 67–71
contacts, developing, 26
convertible preferred stocks, 151–155
on corporate governance, 105–106
and diversif ication, 165–166
on dividends, 89
education of, 11–28
on eff icient market theory, 166
on ethics, 104–106
and Fisher, 26, 27, 28 (see also
Fisher, Philip)
on focus investing, 160 –163
on franchises, 70 –71, 77
on GAAP, 94 –95
and General Re Corporation, 31,
34 –36, 95–96
and Gillette, 52–54, 69–70
and Government Employees
Insurance Company (GEICO),
31–33, 149
and Graham, 25, 26, 27, 58 (see also
Graham, Benjamin)
on human nature, 97
on institutional imperative, 96–102
and the insurance business, 29–39,
95–96
investment approach, 41, 49–50
investment beginnings, 2, 25–26
and journalism, 64, 67
on long-term advantage, 70 –79
on malfeasance, 104 –105
on margin-of-safety principle, 131
on margin of safety, 25
on mega-catastrophes, 35
mistakes, learning from, 25
modern portfolio theory, 163–166
and Munger, 22–24, 28, 95 (see also
Munger, Charles)
National Fire & Marine Insurance
Company, 31
National Indemnity Company, 31,
36–37
net worth, 1
owner’s point of view, 41–42
and Pampered Chef, 49
partnership history, 2–4
personal characteristics, 4, 7
portfolio management, 157–175
on problem companies, 68
psychology of investing, 175,
177–188, 189–198
and risk, 165
salary, 103
stock options, 103–104
and textile business, 29–30
underwriting philosophy, 38–39
vehicles for managing investment, 31
and Washington Post Company,
64 – 65, 67 (see alsoWashington
Post Company)