Buffett Beyond Value Why Warren Buffett Looks to Growth and Management When Investing

by Jain, Prem C.

• ISBN13: 9780470467152
• ISBN10: 0470467150
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-03-29
• Publisher: Wiley

Summary

A detailed look at how Warren Buffett really investsIn this engaging new book, author Prem Jain extracts Warren Buffett's wisdom from his writings, Berkshire Hathaway financial statements, and his letters to shareholders and partners in his partnership firms-thousands of pages written over the last fifty years. Jain uncovers the key elements of Buffett's approach that every investor should be aware of.With Buffett Beyond Value, you'll learn that, contrary to popular belief, Warren Buffett is not a pure value investor, but a unique thinker who combines the principles of both value and growth investing strategies. You'll also discover why understanding CEOs is more important than studying financial metrics; and why you need an appropriate psychological temperament to be a successful investor. Reveals Buffett's multifaceted investment principles Discusses how Buffett thinks differently from others about portfolio diversification, market efficiency, and corporate governance Highlights how you can build a diverse and profitable investment portfolioWith this book as your guide, you'll learn how to successfully invest like Warren Buffett.

Author Biography

PREM C. JAIN is the McDonough Professor of Accounting and Finance at the McDonough School of Business, Georgetown University, in Washington, D.C. He has previously taught at the Wharton School of the University of Pennsylvania and the Freeman School of Business at Tulane University. His research has been published in many prestigious finance and accounting journals including the Journal of Finance and the Journal of Accounting Research. Jain received a doctorate from the University of Florida and a master’s degree in applied economics from the University of Rochester. He is also a CPA in the state of Florida.

Table of Contents

Preface	p. ix
Acknowledgments	p. xv
Introduction and Background	p. 1
The Thrill of Investing in Common Stocks	p. 3
1965-2009: Lessons from Significant Events in Berkshire History	p. 9
Buffett Investing = Value + Growth	p. 23
Value Investing-It's Like Buying Christmas Cards in January	p. 25
Growth Investing	p. 43
Intrinsic Value	p. 57
Buffett Investing = Value + Growth	p. 69
Other People's Money	p. 87
Insurance: Other People's Money	p. 89
Reinsurance: More of Other People's Money	p. 99
Tax Deferment: Interest-Free Loans from the Government	p. 109
Success in Retailing, Manufacturing, and Utilities	p. 113
If You Don't Know Jewelry, Know Your Jeweler	p. 115
Compete Like Mrs. B	p. 123
Why Invest in Utility Companies?	p. 129
High Profits in Honest-to-Goodness Manufacturing Companies	p. 137
Risk, Diversification, and When to Sell	p. 143
Risk and Volatility: How to Think Profitably about Them	p. 145
Why Hold Cash: Liquidity Brings Opportunities	p. 155
Diversification: How Many Baskets Should You Hold?	p. 161
When to Sell	p. 169
Market Efficiency	p. 175
How Efficient Is the Stock Market?	p. 177
Arbitrage and Hedge Funds	p. 185
Profitability and Accounting	p. 193
M = Monopoly = Money	p. 195
Who Wins in Highly Competitive Industries?	p. 205
Property, Plant, and Equipment: Good or Bad?	p. 211
Key to Success: ROE and Other Ratios	p. 217
Accounting Goodwill: Is It Any Good?	p. 223
Psychology	p. 229
How Much Psychology Should You Know?	p. 231
How to Learn from Mistakes	p. 243
Corporate Governance	p. 249
Dividends: Do They Make Sense in This Day and Age?	p. 251
Should You Invest in Companies That Repurchase Their Own Shares?	p. 257
Corporate Governance: Employees, Directors, and CEOs	p. 263
Large Shareholders: They Are Your Friends	p. 273
Conclusion B = Baseball = Buffett	p. 277
Appendix A Summary of the Book	p. 281
Notes	p. 283
About the Author	p. 295
Index	p. 297
Table of Contents provided by Ingram. All Rights Reserved.