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Blink 3 of 8 - The 5 AM Club
by Robin Sharma
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The Warren Buffett Way summary
Robert G. Hagstrom
Investment Strategies of the World's Greatest Investor
18 mins
Brief summary
The Warren Buffett Way by Robert G. Hagstrom is a captivating book that delves into the investment strategies and philosophy of the legendary investor Warren Buffett. It offers valuable insights and lessons for anyone interested in the world of finance and investing.
Table of Contents
The Warren Buffett Way
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A promising start
When he was eleven years old, Warren Buffett made his first investment. He’d saved $120 from entrepreneurial endeavors like selling soda and peanuts. So he studied the price charts and confidently made his purchase. But as it often happens, the stocks dipped, immediately losing value. When they rose again to slightly above what he paid, Buffett panicked and sold at a profit of $5. Shortly after that, the stock value skyrocketed.
He’d learned two tough lessons: He would never again obsess over what he paid for a stock. And he would never sell for anything less than a substantial profit.
After that, everything Warren Buffett touched seemed to turn to gold. Not that he didn’t work for it – he graduated college and then fought for a position at Graham-Newman Corporation, where he got his real education in trading. Then, at the age of 25, he started his first limited liability partnership with a $100 investment and the simple goal of beating the Dow Jones by 10 percent a year. He ended up beating it by 22 percent – and, over a 12 year period, grew his investment to $25 million.
In 1965, four years before ending the partnership, Buffett bought Berkshire Hathaway, which had begun in 1889 as a cotton manufacturer. As the textile part of the business was slowly dying, Buffett made a decision that would shape the rest of his life. In 1967, he bought up the outstanding stock in two decently healthy firms: National Indemnity Company and National Fire & Marine Insurance Company. It was a dramatic departure from textiles – and it took Berkshire Hathaway from $2.9 million in securities to $5.4 million in just two years. This decision set the company on course to becoming the investing giant it is today.
From his first limited liability investment of $100, Warren Buffett is now worth over $100 billion. Many people consider him to be a systemic anomaly. There’s a long-accepted school of thought in the investor world called the Efficient Market Hypothesis that says you can’t beat the market. And Buffett himself expresses that he won a genetic lottery, having the right skills in the right moment in time to flourish.
That said, the rest of this Blink will explore Buffett’s ability to beat the market not with chance, but with skill.
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What is The Warren Buffett Way about?
The Warren Buffett Way (2013) chronicles the unprecedented success of one of the world’s greatest investors. From his first $120 investment to his ultimate $120 billion net worth, it focuses on the history and strategies of the man who seemed to do the impossible: beat the market.
The Warren Buffett Way Review
The Warren Buffett Way (1994) is a remarkable book that delves into the investment strategies and mindset of the legendary Warren Buffett. Here's why this book is worth reading:
- With its in-depth analysis of Buffett's investment principles, it provides readers with valuable insights into his highly successful approach to investing.
- The book combines practical advice with real-life examples of Buffett's investments, giving readers the tools they need to make informed investment decisions.
- Through its engaging storytelling, the book brings to life the world of finance and investing, making it a captivating read that is definitely not boring.
Who should read The Warren Buffett Way?
- Amateur and advanced economists and investors
- People interested in success stories
- Anyone who wants to learn about Warren Buffett’s life
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The Warren Buffett Way FAQs
What is the main message of The Warren Buffett Way?
The main message of The Warren Buffett Way is that investing wisely requires a long-term mindset and a focus on value.
How long does it take to read The Warren Buffett Way?
The reading time for The Warren Buffett Way varies depending on the reader's speed. However, the Blinkist summary can be read in just 15 minutes.
Is The Warren Buffett Way a good book? Is it worth reading?
The Warren Buffett Way is worth reading for anyone interested in learning the investment strategies of Warren Buffett. It provides valuable insights into his successful approach.
Who is the author of The Warren Buffett Way?
Robert G. Hagstrom is the author of The Warren Buffett Way.
What to read after The Warren Buffett Way?
If you're wondering what to read next after The Warren Buffett Way, here are some recommendations we suggest:
- Warren Buffett's Ground Rules by Jeremy C. Miller
- Eat More, Live Well by Megan Rossi
- The Four Pillars of Investing by William J. Bernstein
- Buffett and Munger Unscripted by Warren E. Buffett
- Charlie Munger by Tren Griffin
- Thinking, Fast and Slow by Daniel Kahneman
- The Intelligent Investor by Benjamin Graham and comments by Jason Zweig
- The Bogleheads' Guide to Investing by Mel Lindauer
- The Psychology of Money by Morgan Housel
- Easy Money by Ben McKenzie with Jacob Silverman