Saturday, October 21, 2017

Buffett's Words of Wisdom

If you GOOGLE Buffett's investment advice you will get scores of links, ironically none of those results actually link to Buffett’s shareholder's letters - the source of all the investment advice, which to me is as pure as the water of Gangotri (Origin of River Ganges).Thus I thought of creating this post that lists down his words of wisdom and provides the reference Shareholder's letter where we can find more information about the topic.

1. How stock markets work and how we can benefit from it – 1987. 


2. What kind of companies does Buffett prefer to invest? – 1987. 


3. What an investor should know and his basic goal towards investing. – 1996. 


4. How to value an asset Using the philosophy “Bird in the hand is worth two in the bush”. 2000. 


5. What’s difference between Investment and speculation? 2000. 


6. Growth and value investing are same. 2000. 


7. How Buffett and Munger view themselves while analyzing stocks? – 1987. 


8. SATIRICAL – Why investment professionals behave as they do? – 1985. 


9. Even a great management cannot save a business with poor economics. 1985. 


10. How Buffett measures Long term results? - 1979. 


11. The value of a brand – case study of See’s candies – 1983. 


12. Economics of mergers and acquisitions. 1981. 


13. Economic Goodwill vs Accounting Goodwill – 1983. 


14. How an Insurance company can have lots of cash and still be broke – 1984. 


15. Buffett’s views on dividend policy – 1984. 


16. Cash flow is important , but don’t forget capital expenditures. - 1986. 


17. Difference between Book value and intrinsic value – 1987. 


18. Case studies of arbitrage opportunities : Rockwood / Arcata- 1988. 


19. Smart companies become aggressive when others are weak. How Berkshire profited in 1989 when Hurricane Hugo and California earthquake hit. 1989. 


20. Bond investing – 1989 


21. What’s the trait of a good insurance company – 1990. 


22. Lesson on Banking business. 1990. 


23. Difference between franchise and a Business – 1991.


24. Lesson on derivatives – 2002 / 2007. 

25. A business should stay simple – Mid American’s zinc fiasco – 2004. 


26. How super catastrophic premiums are recorded – 1992. 


27. How Float can be an asset for an Insurance company – 1997. 


28. Don’t just rely on accounting numbers- Look at the economic value Example of Scot Fetzer – 1986. 


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