The Warren Buffett Way
Encyclopedia
The Warren Buffett Way, a book by author Robert Hagstrom, outlines the principles of value investing
practiced by successful investor Warren Buffett
.
The first edition, published in 1994, sold over a million copies and spent 21 weeks on the New York Times Hardcover Nonfiction Bestseller list. A decade later, Hagstrom issued a second, expanded edition.
The principles included:
Value investing
Value investing is an investment paradigm that derives from the ideas on investment and speculation that Ben Graham and David Dodd began teaching at Columbia Business School in 1928 and subsequently developed in their 1934 text Security Analysis...
practiced by successful investor Warren Buffett
Warren Buffett
Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is widely regarded as one of the most successful investors in the world. Often introduced as "legendary investor, Warren Buffett", he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is...
.
The first edition, published in 1994, sold over a million copies and spent 21 weeks on the New York Times Hardcover Nonfiction Bestseller list. A decade later, Hagstrom issued a second, expanded edition.
The principles included:
- Purchase businesses with excellent long-term prospects
- Purchase businesses at a large discount to their intrinsic valueIntrinsic value (finance)In finance, intrinsic value refers to the value of a security which is intrinsic to or contained in the security itself. It is also frequently called fundamental value. It is ordinarily calculated by summing the future income generated by the asset, and discounting it to the present value...
- Purchase businesses with a high return on invested capital
- Purchase businesses with honest managers