The Warren Buffett Way

Praise for The Warren Buffett Way "[This] book's popularity is a testimony to the accuracy of its analysis and the value of its advice." —BILL MILLER, Chairman and CIO, LMM, LLC "A comprehensive primer on applying Buffett's investment strategy to the new economy." — Fortune "For readers of The Warren Buffett Way , I hope I can provide a very personal look into an important piece of investment history and some thoughts on how to best use this wonderful book. There is little I will say about Mr. Buffett since that is the subject of this book and Robert Hagstrom covers that ground with grace and insight." —KEN FISHER, from the Introduction " The Warren Buffett Way outlines his career and presents examples of how his investment techniques and methods evolved and the important individuals in that process. It also details the key investment decisions that produced his unmatched record of performance." —PETER S. LYNCH, bestselling author, One Up on Wall Street and Beating the Street "An extraordinarily useful account of the methods of an investor held by many to be the world's greatest." — The Wall Street Journal "Robert Hagstrom presents an in-depth examination of Warren Buffett's strategies, and the 'how and why' behind his selection of each of the major securities that have contributed to his remarkable record of success. His 'homespun' wisdom and philosophy are also part of this comprehensive, interesting, and readable book." —JOHN C. BOGLE, founder and retired CEO, The Vanguard Group "It's first rate. Buffett gets a lot of attention for what he preaches, but nobody has described what he practices better than Hagstrom. Here is the lowdown on every major stock he ever bought and why he bought it. Fascinating. You could even try this at home." —JOHN ROTHCHILD, bestselling author, The Bear Book and The Davis Dynasty "Nobody has described what Buffett practices better than Hagstrom." — Time "Simply the most important new stock book. . . . If you think you know all about Warren Buffett, you have a lot to learn from this book." — Forbes "Almost anybody curious about the relationship between the behavior of economics, the performance of firms, and the ups and downs of the stock market will find something of interest here." — The Economist " The Warren Buffett Way is accessible to average readers because Mr. Hagstrom reduces the billionaire's techniques to some easily understandable tenets . . . the book demonstrates the rewards that can come down the road." — The Dallas Morning News "Thank you, Robert Hagstrom, for the finely honed thinking, the clear writing, and the simple strategies that help all of us be more successful at one of life's most intriguing and intimidating tasks: investing our money." —JANET LOWE, bestselling author, Warren Buffett Speaks "By placing Buffett's approach into a broader context, Robert Hagstrom captures not just the key ideas of this century's investing giants, from Ben Graham to Phil Fisher, but also lucidly explains the theoretical foundation of their insights, including probability theory and psychology. This is not simply an investing book; it is an investing library." —CHRIS DAVIS, Portfolio Manager, Davis Advisors "Robert Hagstrom shows how 'the world's greatest investor' can help us navigate." —KAY BOOTH, Managing Director, Cappello Waterfield & Co., LLC

Foreword to the Third Edition Foreword to the Second Edition (Bill Miller) Foreword to the First Edition (Peter S. Lynch) Preface Introduction (Kenneth L. Fisher) Chapter One A Five–Sigma Event The World’s Greatest Investor Personal History and Investment Beginnings The Buffett Partnership Ltd. Berkshire Hathaway Insurance Operations New subhead: Five Sigma Event Chapter Two The Education of Warren Buffet Benjamin Graham Philip Fisher Charlie Munger A Blending of Intellectual Influences Chapter Three Buying a Business The Twelve Immutable Tenets Business Tenets Management Tenets Financial Tenets Market Tenets Chapter Four Common Stock Purchases Nine Case Studies The Washington Post Company GEICO Corporation Chapter Five Portfolio Management: The Mathematics of Investing The Mathematics of Focus Investing Focus Investors in Graham–and–Doddsville Chapter Six The Psychology of Investing The Intersection of Psychology and Economics Behavioral Finance And On the Other Side, Warren Buffett Why Psychology Matters Chapter Seven The Value of Patience For the Long Term Rationality: The Critical Difference Slow–Moving Ideas System 1 and System 2 The Mindware Gap Time and Patience Chapter Eight The World’s Greatest Investor The Private Buffett The Buffett Advantage Learning to Think Like Buffett Finding Your Own Way Appendix Notes Acknowledgments About the Companion Website About the Author

ROBERT G. HAGSTROM is one of the best-known authors of investment books for general audiences. He has written nine books, including the New York Times bestselling The Warren Buffett Way and The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy . He is also the author of The NASCAR Way: The Business That Drives the Sport; The Detective and the Investor: Uncovering Investment Techniques from the Legendary Sleuths; and Investing: The Last Liberal Art . Robert is a graduate of Villanova University with a BA and MA and is a Chartered Financial Analyst. He lives with his family in Villanova, Pennsylvania. Visit Robert's website at www.RobertHagstrom.com.