The Warren Buffett Way

By: Robert G. Hagstrom

Notes:

12 Investments in forty years made all the difference.
Warren doesn’t look at market conditions when buying companies.
- Therefore, no technical analysis.
Warren only invests in stocks that will increase in earnings 5 to 10 years in the future.
He continuously changed his investment strategy over time, but he keeps the core valuation philosophy.
He says to buy stocks for less than two-thirds of their net assets value.
- I might have an advantage, because I know how to value intangible assets.
Best advice to young people is learn about every single public company in the United States. Like WW does.
When adding a company to your port, only buy things that are better than what you already have.
- No mention of when to get rid of companies.
Keep portfolio turnover between zero and 20%. It correlates with superior returns for every type of asset manager.
- Outperformed tend to have low turnovers and concentrated holdings.
Buffet doesn’t sell when the mrkt is high. He looks at the mrkts mood and sells when ppl are euphoric.