Summary

In Warren Buffett: Inside the Ultimate Money Mind, Hagstrom breaks new ground with a deep analysis of Buffett's essential wisdom, an intricate mosaic of wide-ranging ideas and insights that Buffett calls a Money Mind.

What exactly is a Money Mind? At one level, it's a way of thinking about major financial issues such as capital allocation. At another level, it summarizes an overall mindset for successfully investing in today’s fast-paced stock market, a mindset that depends on a commitment to learning, adapting, and facing down irrelevant noise.

This is not a method book. It is a thinking book.

Warren Buffett: Inside the Ultimate Money Mind explains the philosophies of self-reliance, stoicism, rationalism, and pragmatism and their contributions to making intelligent investment decisions. It also outlines the evolution of value investing, discusses how to develop a business-driven investing mindset, and describes the defining traits of successful active management. Lastly, it examines the surprising aspects of a Money Mind – sportsman, teacher, and artist.

In short, Warren Buffett: Inside the Ultimate Money Mind helps readers understand the building blocks that go into making a Money Mind so they can begin to incorporate its principles in the service to a life of value.

Testimonials

"An erudite masterpiece..."
–Lawrence A. Cunningham, author; professor and director, Quality Shareholders Initiative, George Washington University

"It's another must-read…"
–Bethany McLean, journalist and Contributing Editor, Vanity Fair, author, Saudi America and co-author The Smartest Guys in the Room

"Pure Genius! This is a game changer in investment books..."
–Robert P. Miles, author; Executive in Residence, University of Nebraska at Omaha, Executive MBA Program, 'The Genius of Warren Buffett'

"Effervescence and thoughtful analysis of Buffett's life and work..."
–Tom Gayner, Co-chief Executive Officer, Markel Corporation

"Hagstrom's books always enable readers to think about the world in new ways…"
–Tren Griffin, author, Charlie Munger: The Complete Investor

Author Biography

ROBERT G. HAGSTROM is Chief Investment Officer at EquityCompass Investment Management LLC, and Senior Portfolio Manager of the Global Leaders Portfolio. Robert has written ten books, including the New York Times bestseller The Warren Buffett Way, which has sold over one million copies worldwide and been translated into 18 foreign languages. He is also the author of The Warren Buffett Portfolio: Mastering the Power of the Focus Investing Strategy and Investing: The Last Liberal Art.

Prologue V

Chapter One The Young Warren Buffett 1

It Begins 8

From Investment Partnership to a

Compounding Conglomerate 13

Chapter Two Developing an Investment Philosophy 17

Howard Homan Buffett 19

Benjamin Graham 26

Charles Thomas Munger 32

In Closing . . . 47

Chapter Three Evolution of Value Investing 49

Stage One: Classic Value Investing 51

Stage Two: Valuing a Business, Not a Stock 65

Stage Three: The Value of Network Economics 81

Chapter Four Business-Driven Investing 115

Investment Zone 117

Chapter Five It’s Not That Active

Management Doesn’t Work 147

Chapter Six The Money Mind: Sportsman, Teacher, Artist 185

Epilogue 199

Acknowledgments 207

Berkshire Hathaway Library 211

For Further Reading 215

Notes 225

Index 237

Supplemental Materials

What is included with this book?

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