The Warren Buffett Way Book Summary - The Warren Buffett Way Book explained in key points
Listen to the Intro
00:00

The Warren Buffett Way summary

Robert G. Hagstrom

Investment Strategies of the World's Greatest Investor

4.5 (266 ratings)
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
    Summary of 5 key ideas

    Audio & text in the Blinkist app
    Key idea 1 of 5

    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.

    Want to see all full key ideas from The Warren Buffett Way?

    Key ideas in The Warren Buffett Way

    More knowledge in less time
    Read or listen
    Read or listen
    Get the key ideas from nonfiction bestsellers in minutes, not hours.
    Find your next read
    Find your next read
    Get book lists curated by experts and personalized recommendations.
    Shortcasts
    Shortcasts New
    We’ve teamed up with podcast creators to bring you key insights from podcasts.

    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

    About the Author

    Robert G. Hagstrom is a New York Times best-selling author with 30 years of investment experience. He’s Chief Operating Officer of EquityCompass and Senior Portfolio Manager of the Global Leaders Portfolio. 

    Categories with The Warren Buffett Way

    Book summaries like The Warren Buffett Way

    People ❤️ Blinkist 
    Sven O.

    It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.

    Thi Viet Quynh N.

    Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.

    Jonathan A.

    Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.

    Renee D.

    Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.

    People also liked these summaries

    4.7 Stars
    Average ratings on iOS and Google Play
    30 Million
    Downloads on all platforms
    10+ years
    Experience igniting personal growth
    Powerful ideas from top nonfiction

    Try Blinkist to get the key ideas from 7,000+ bestselling nonfiction titles and podcasts. Listen or read in just 15 minutes.

    Start your free trial

    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.