Publisher Description

When Warren Buffett Speaks. . . people listen.

"If people want to improve their investing skills, it has to help to study how the Master does it. This short book outlines Buffett's philosophy and techniques."
—Peter S. Lynch, Fidelity Investments

"Common sense with a deft irony . . ."
—John C. Bogle, founder of The Vanguard Group and author, "The Little Book of Common Sense Investing"

"It was Warren Buffett's thoughts and philosophy that first captivated investors. Janet Lowe has done us all a great service by collecting and arranging Warren Buffett's wit and wisdom in an easy-to-read and enjoyable book."
—Robert G. Hagstrom, Portfolio Manager, Legg Mason Growth Trust mutual fund, and author, "The Warren Buffett Way, Second Edition"

"A must-read. Buffett's wit and wisdom is a roadmap for anyone looking to succeed in business, investing, and life."
—Steve Halpern, Editor,

Back Cover

Over the years, as Warren Buffett's influence and affluence have grown, one thing has remained the same--his unpretentious, honest, and optimistic approach toward business and life. In this completely revised edition of Warren Buffett Speaks , bestselling author Janet Lowe shows you why. Updated to reflect Buffett's life over the past decade, this book contains a delightfully entertaining collection of quotes, writings, and favorite sayings from the world's most successful investor. Often surprising, always intriguing, and sparked throughout by Buffett's unique combination of savvy business smarts and dry wit, this new edition is filled with Buffett's musings on subjects such as the Internet economy, family and friends, running a business, paying taxes, and much more. It also examines the thinking that prompted the second richest man in the world to give 85% of his wealth to the first richest couple (Bill and Melinda Gates) to distribute to charity. More than just a book about investing, Warren Buffett Speaks reveals the personality and philosophy of one of the world's most compelling figures. Peppered with pearls of wisdom cultivated throughout his life, this book will help you understand and appreciate Buffett's beliefs on a variety of important issues. Here's a sample of just some of the honest and engaging insights you'll find inside: "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently." "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with a 130 IQ. Rationality is essential." "I want to be able to explain my mistakes. This means I do only the things I completely understand." "You should invest in a business that even a fool could run, because someday a fool will." "Over the years, a number of very smart people have learned the hard way that a long stream of impressive numbers multiplied by a single zero always equals zero."

Flap

Over the years, as Warren Buffett's influence and affluence have grown, one thing has remained the same—his unpretentious, honest, and optimistic approach toward business and life. In this completely revised edition of Warren Buffett Speaks, bestselling author Janet Lowe shows you why. Updated to reflect Buffett's life over the past decade, this book contains a delightfully entertaining collection of quotes, writings, and favorite sayings from the world's most successful investor. Often surprising, always intriguing, and sparked throughout by Buffett's unique combination of savvy business smarts and dry wit, this new edition is filled with Buffett's musings on subjects such as the Internet economy, family and friends, running a business, paying taxes, and much more. It also examines the thinking that prompted the second richest man in the world to give 85% of his wealth to the first richest couple (Bill and Melinda Gates) to distribute to charity. More than just a book about investing, Warren Buffett Speaks reveals the personality and philosophy of one of the world's most compelling figures. Peppered with pearls of wisdom cultivated throughout his life, this book will help you understand and appreciate Buffett's beliefs on a variety of important issues. Here's a sample of just some of the honest and engaging insights you'll find inside: "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently." "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with a 130 IQ. Rationality is essential." "I want to be able to explain my mistakes. This means I do only the things I completely understand." "You should invest in a business that even a fool could run, because someday a fool will." "Over the years, a number of very smart people have learned the hard way that a long stream of impressive numbers multiplied by a single zero always equals zero."

Author Biography

Janet Lowe is the author of the bestselling Bill Gates Speaks and Jack Welch Speaks. Her articles have appeared in such publications as Newsweek, the Christian Science Monitor, the Los Angeles Times, and the San Francisco Chronicle.

Table of Contents

Acknowledgments xiii


Introduction 1


ABOUT LIFE 13


Omaha? Omawhere? Omawhat? 13


Live how you want to live 15


Eat what you want to eat 15


Have a hobby 16


Be passionate 19


Aim high 20


Aim well 23


Focus on your goals 23


Keep life in perspective 23


Be honest 27


Tell the whole truth, please 28


Letter to the Wall Street Journal 30


Cultivate good character 36


Believe in yourself 37


But don't get too stuck on yourself 38


Dodge the hype 44


Share your wisdom 44


Disregard old age 45


ALSO: Attention Investors: Warren Buffett is crossing the street 20


Nice guys finish first-sometimes 24


Choose your heroes well 40


Rose Blumkin, matriarch of the Nebraska Furniture Mart 47


ABOUT FRIENDS 51


Know what friendship is 51


Go to bat for your pals 51


Guiding Governor Schwarzenegger 52


Build lifelong friendships 54


ALSO: Charlie Munger 54


ABOUT FAMILY 58


Don't spoil your kids 58


The Buffett children 62


Work things out with your wife 75


Be kind to your mother 81


ALSO: What others say about Warren Buffett 70


Astrid Menks, Buffett's second wife 78


The controversial Susan T. Buffett Foundation 79


What Leila Buffett had to say about her son 82


What the critics say 82


ABOUT WORK 85


Work for the fun of it 85


Start early 88


Work where you want to work 89


Work with good people 90


Give a pat on the back 92


Be loyal to your partners 93


Guard your time 95


Know when to quit 97


ABOUT RUNNING A BUSINESS 99


Communicate well 99


Know when to say no 100


Set an example 101


Take care of shareholders 104


Hire well, manage little 110


Put a premium on experience 111


Be smart about allocating capital 111


Be brave 112


Use crossover skills 112


The mighty machine called Berkshire Hathaway 113


ALSO: The Berkshire Hathaway annual meeting 102


Goodbye to a good idea 106


The Salomon scandal 108


Berkshire Hathaway online 109


ABOUT INVESTING 116


Have a philosophy 116


Recognize the enemy: inflation 117


Experience epiphany 119


Never mind what the professors say 125


Meet Mr. Market-your servant, not your guide 126


Ignore Mr. Market's moods 129


Listen for opportunity's call 130


Know the difference between price and value 133


Seek intrinsic value 133


Expect to be out of step 134


Earnings, earnings, earnings 137


Look forward, not back 138


Avoid risk 139


Don't gamble 141


Watch for unusual circumstances 143


Don't be surprised by circumstances 143


Avoid excessive debt 144


Look for screaming bargains 145


Arbitrage when possible 145


Be patient 148


Think for yourself 149


Have the right tools 150


Be wary of Wall Street 151


Only buy securities that you understand 152


An old dog prowls new markets 153


PetroChina 155


An expanding circle of competence 157


Buy reading glasses 160


Become an investigative reporter 161


Keep it simple 162


Think big 164


Know what you're looking for 166


Don't sweat the math 167


Admire frugality 169


Set realistic goals 171


Face facts 171


Expect change 174


Be capable of change 175


Admit your mistakes 182


No thumb sucking 185


Join AA (Airlines Anonymous) 186


Learn from your mistakes 190


Buy storybook stocks 191


Seek excellent companies 193


Stick with quality 196


Junk bonds 197


Appreciate franchise value 199


Respect pricing power 202


Find a company with cheap float (then try to not misplace the company) 203


Learn to like Monopoly 204


Find managers who think like owners 205


Management is important, but a good company is more important 206


Avoid the Institutional Imperative (the tendency for corporations to act like lemmings) 206


Favor companies that repurchase their own stock 207


Don't worry about diversification 207


Invest for the long term 208


To sum up 209


And when you've become wealthy by following in the footsteps of Buffett, pay your dues to society 210


Investing is one way of contributing to the public well-being 210


When rewards are disproportionate 211


Pay your taxes and don't complain 214


Give as generously as you receive 218


Thoughts on charitable giving 223


Will Buffett's gift affect the company? 226


The last word 227


ALSO: Benjamin Graham 120


The Used-Cigar-Butt School of Investing 135


He tells them, but they don't listen 172


Baby Berkshire shares 175


What does the Bill and Melinda Gates Foundation do? 224


Berkshire's Book Value vs. the S&P 500 231


Berkshire Hathaway Share Price 233


Time Line 235


Endnotes 241


Permissions 271

Long Description

When Warren Buffett Speaks. . . people listen. "If people want to improve their investing skills, it has to help to study how the Master does it. This short book outlines Buffetts philosophy and techniques." Peter S. Lynch Fidelity Investments "Common sense with a deft irony . . ." John C. Bogle founder of The Vanguard Group and author, The Little Book of Common Sense Investing "It was Warren Buffetts thoughts and philosophy that first captivated investors. Janet Lowe has done us all a great service by collecting and arranging Warren Buffetts wit and wisdom in an easy-to-read and enjoyable book." Robert G. Hagstrom Portfolio Manager, Legg Mason Growth Trust mutual fund,and author, The Warren Buffett Way, Second Edition "A must-read. Buffetts wit and wisdom is a roadmap for anyone looking to succeed in business, investing, and life." Steve Halpern Editor,

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