I read The Warren Buffett Way, Second Edition from cover to cover in less than 2 days. The author, Robert G. Hagstrom has managed to explain and illustrate the way Warren Buffett invests in such clarity even a beginner will have no problem understanding the concepts and techniques discussed in this book.

Warren Buffett is recognized as the best investor in our time. Today, he is the richest person in the world. And he is the only billionaire to have made his fortune from investing. Who wouldn’t want to learn to trade like Warren Buffett?

Robert has studied many of Warren Buffett’s transactions and has identified similarities in Warren Buffett’s techniques to investing in stocks and businesses. He calls these techniques, the tenets. His approach is to invest in a business that is simple to understand, with predictable future earnings, honest management and buying at a discount. These tenets are easy to understand, and not impossible to imitate or follow. The author uses some of Warren Buffett’s popular investments (Coca-Cola, Gillette, Wells Fargo and others) to illustrate how Warren Buffett used his techniques in the real world.

Warren Buffett’s approach is as useful today as it was 50 years ago. Circumstances and businesses have changed, but the principle behind Warren Buffet’s techniques is as valuable and practical as ever. Towards the end of the book, Robert explains how he uses Warren Buffett’s way to invest in the New Economy, an area where Warren Buffet has stayed away from.

I enjoyed reading this book. This book is worth its weight in gold.

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