Buffettology

This book laid out for me the system Warren Buffett and other great minds use to analyze investments.

I thought it was a great introduction that took me into being able to practically not just think about how to analyze investment opportunities but to actually do it—to actually use the information I gleaned from the book. One of the big picture takeaways was to think of a stock as if it is a bond.

I learned a ton from this book. It truly opened up new doors in my mind to how I think about investments in general.

Buffett is probably not thrilled with this book, written by his ex-daughter-in-law, but I think it provides the best insight into his investment process. Mary Buffett was married to Buffett’s son Peter, and David Clark is a Chartered Financial Analyst (CFA) that skillfully explains some of the more technical aspects of investing. For example, the book discussed how Buffett values a stock. He primarily considers companies with a “moat” so he has confidence in forecasting their cash flows. He then projects these cash flows out at least ten years and discounts them back to the present to estimate their value.… show more.