J.K. Lasser’s Pick Stocks Like Warren Buffett is for ordinary investors who know that they could do a lot better if they knew a little more. And the truth is, much of Buffett’s investment strategy is perfectly suited for the everyday investor. His advice, which he has been generous in sharing, is simple and almost surefire.
Introduction:
Buffett buys only what he considers to be almost sure things stocks of companies so powerful, so unassailable, that they will still dominate their industries ten years hence. He confines his choices to stocks in industries that he is thoroughly familiar with. He will seek out every last bit of information he can get, whether it’s a company’s return on equity or the fact that the CEO is a miser who takes after Ebenezer Scrooge himself.
He scrutinizes his occasional mistakes, quickly undoes them, and tries to learn lessons from the experience.While he is loyal to the management and employees of companies he buys, he is first and foremost loyal to his investors. To Warren Buffett, the foulest four-letter word is: r-i-s-k.
Beyond that, he avoids making the mistakes ordinary investors make: buying the most glamorous stocks when they’re at the peak of their popularity; selling whatever temporarily falls out of favor and thus following the crowd (in or out the door); attempting to demonstrate versatility by buying all manner of stocks in different industries; being seduced by exciting stories with no solid numbers to back them up; nd tenaciously holding onto his losers while shortsightedly nailing down the profits on his winners by selling.
Contents:
- It’s Easy to Invest like Warren Buffett
- The Achievement of Warren Buffett
- Buffett: A Life in the Stock Market
- The Influence of Benjamin Graham
- The Influence of Philip Fisher
- How Value and Growth Investing Differ
- Buffett’s 12 Investing Principles
- Don’t Gamble
- Buy Screaming Bargains
- Buy What You Know
- Do Your Homework
- Be a Contrarian
- Buy Wonderful Companies
- Hire Good People
- Be an Investor, Not a Gunslinger
- Be Businesslike
- Admit Your Mistakes and Learn from Them
- Avoid Common Mistakes
- Don’t Overdiversify
- Quick Ways to Find Stocks That Buffett Might Buy
- William J. Ruane of Sequoia
- Robert Hagstrom of Legg Mason Focus Trust
- Louis A. Simpson of GEICO
- Christopher Browne of Tweedy, Browne
- Martin J. Whitman of the Third Avenue Funds
- Walter Schloss of Walter & Edwin Schloss Associates
- Robert Torray of the Torray Fund
- Edwin D. Walczak of Vontobel U.S. Value
- James Gipson of the Clipper Fund
- Michael Price of the Mutual Series Fund
- A Variety of Other Value Investors
- Putting Everything Together