Buffettology

published

2012-03-04

rating

5

Despite being written for general audiences, Buffettology provides some really good investing advice. It emphasizes a few key principles including: price determines your rate of return, you should aim to maximize your rate of return and maintain it for as long as possible, look for companies with stable return on equity, and look for companies that have a consumer monopoly instead of commodity-type companies. It repeats these points ad-nauseum, but it is good that they are emphasized so strongly because they are so important. In the second half, it explains how you can do some basic calculations to determine your expected rate of return. It also has some case studies of stocks that Buffett actually bought.