Monday, February 21, 2011

Buffettology



About the book

Spanning 319 pages, Buffettology is authored by Warren Buffett's former daughter-in-law, Mary Buffett, and David Clark.



Contents

This work is separated into two parts, namely the basic and the advanced section. The basic part deals with some definition of terms, pointers about Warren Buffett's investment strategy, and discussions about inflation and compounding.

The advanced section, meanwhile, contains, several chapters teaching you how to estimate earning power, growth rates, future values, and compounded rate of return, among other things. It also mentions 54 real-life companies that Warren Buffett looks or looked at before.


Review

Although this was written by Warren Buffett's daughter-in-law, I find this work too summarized. It is an effort to simplify Warren Buffett's investing strategy for the benefit of average readers and investors. Rather than helping you grasp more about Warren Buffett's style, it makes you feel that you need to learn more about Warren Buffett. It makes you want to look for other works about the successful billionaire and put his strategies in a wider context. Furthermore, the advanced section involving computations lacks further guidance and is hard to follow. One would need to buy the Buffettology workbook to get a better working idea. 


Difficulty Level = 3/5

Even though the language is easy to understand, there seem to be too many simplified ideas and lessons built into every chapter.


Personal Rating = 2/5

In my opinion, it would be better to start learning first about basic finance computations and fundamental analysis techniques before reading this book. 


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