How Buffett Does It: 24 Simple Investing Strategies from the World's Greatest Value Investor

by James Pardoe

A concise, no-nonsense rulebook for investors looking to achieve Buffett-like results Warren Buffett is one of the wealthiest investor in the world. Millions of independent investors follow his every move. But why Buffett? What signs does he see that others miss? And more important, what can investors do to follow Buffett's path to investment and financial success? How Buffett Does It explores the 24 primary rules Buffett has followed from day one, and that people from market novices to seasoned veterans can use to strengthen their investing results. Drawing from literally hundreds of quotes and maxims, Buffett admirer and attorney James Pardoe has chosen those that encapsulate and explain the Buffett legend. This plain-talking and investor-friendly guidebook takes readers on an in-depth journey through strategies

Genres: Finance, Business, Nonfiction, Personal Finance

159 pages, Hardcover

First published June 27, 2005

Reviews

[Patrick Sherriff · Rating 4 out of 5]

Simple, but good. My proper review is here: http://patricksherriff.com/2019/12/17...

[Joe W. · Rating 2 out of 5]

This book can easily be read in one sitting. Heavy on praise and light on practical advice, most of the benefit here is in the general framework of advice the author provides at the end of each chapter. If you know nothing about Warren Buffet or value investing and want a (very) general overview, borrow this from the library dont buy it.
Want to know how to invest? You're better off reading Graham's The Intelligent Investor or maybe even Rule #1.

[Vinay Khandelwal · Rating 5 out of 5]

Easy read. Focused on the key points of value investing

[M Thalal · Rating 5 out of 5]

I read James Pardoe's How Buffett Does It during my flight from Banda Aceh to Semarang and back. I love the book as it gives a very good insight on value investing as practiced by Warren Buffett. The book contains Buffett's wisdoms and advices on best investing ways for other investors to follow. In Buffett's way, investing is simple and easy and in only businesses that we understand or within our circle of competence. Buffet warns us that there is no get-rich-quick scheme because it takes time to accumulate wealth through investing. Buffett considers a stock as part of a business, and therefore investor should focus only on the business performance. Investors should not be distracted by macro events such as geopolitics or change in economy. To sum up, James Pardoe did a great job in summarizing Buffett's principles of successful investing. Be a sound investor by reading, reading some more, and then thinking.

[Ahmad Wagieh · Rating 4 out of 5]

Could be shorted for half pages or more, the author kept repeating same ideas over and over; however, generally the book is easy to read, straightforward and a good read to start in trading and investing properly.

[Manoj Sharma · Rating 4 out of 5]

#good#Knowledge short book for better investing..

[Kat Riethmuller · Rating 4 out of 5]

Warren Buffett never inherited any money from his parents, yet he is worth more than $40 billion today.
Buffett’s mentor, Benjamin Graham, taught him value investing.
Buffett’s value-investment bible is Security Analysis, by Graham and David Dodd.
Because value investing is simple, investment professionals have not endorsed it.
Do your own research and make your own investment decisions.
Be patient. Buffett says he is a "decades trader" as opposed to a "day trader."
Invest in companies that you understand, that have successful business models and that don’t experience competition and price controls.
In 1999, during the Internet stock-buying frenzy, Berkshire Hathaway stock fell 50%, to $40,000 a share, but by 2004, it had risen to $97,000 per share.

Mental and emotional stability. Don’t be your own worst enemy
Buffet says you should thinking of buying stocks like buying property or land.
Buffet is a business analyst not a stock analyst

Invest in companies:
- that you understand
- lead their fields and have few competitors
- sell things people need
- dont require cash infusions; and
- aren't subject to pricing regulations

Avoid Gee whiz companies e.g. tech
- Buffet invests in companies that make candy, underwear, bricks, paint, carpet
- He looks carefully at their cash flow
- He avoids high-tech: companies, new economy companies and companies that do not pass along value to its investors and whose stock price easily become inflated
- stays away from businesses in volatile industries and likes established, predictable companies with successful business models
- he declined to invest in webvan.com a company that proposed using the internet to organise grocery deliveries and enjoyed a market capital of $5b. Buffet couldn't figure out who would make money on the venture and webvan eventually collapsed
- dont diversify. Most investment professionals says the opposite but Buffet says that if you discover a good company you should take a large position in it
- individual investors portfolios should consist of no more than 10 stocks
- Berkshire Hathaway's portfolio often comprises as few as 10
- Hibernate: Investing is not an action games. Over-active investors may become their own worst enemies.
- Buffet buys stock in weights. He estimates that 20% of the time he's been investing he's found nothing worth buying. He goes years without changing his holdings. Mutual funds commissions and related trading costs.
- Ignore the stock ticker. Buffet does not follow daily, weekly or even monthly stock movements. He analyses business activities since that it what drives stock prices. Focus on value, not price
- Hunt for bargains. Best time to buy is when stocks are falling.

[Kalle Wescott · Rating 5 out of 5]

I read /How Buffett Does It: 24 Simple Investing Strategies from the World's Greatest Value Investor/, by James Pardoe.

The copy I read (in Dubai, in the UAE) was for sale only in India, Pakistan, Nepal, Bangladesh, Sri Lanka, and Bhutan.

Thus, it's quite possible that people in those South East Asian countries have the edge over people in the rest of the world, in terms of Buffett's investing strategies.

Perhaps the next Berkshire Hathaway is a South Asian company.

After all, everyone (globally) is already reading /Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger/, thanks to Tim Ferriss' podcast and books.

But those twenty-four (24) investing strategies may end up being a sustainable competitive advantage.
_____________

Being serious for just one moment (very difficult for me), Buffett and Munger differ from 99.9% of investment managers' advice and recommendations.

They preach NON-diversification.

Munger preaches holding just three amazing companies, and Buffett put all his wealth into one company.

[Farzad Kabiri · Rating 5 out of 5]

If you are looking to be a successful investor in future but you have absolutely no idea on how to start, I recommend that you start with this book.

This book eliminate so many mistakes that we make during investing and teaches us on how to be more objective in stock investments and turn a risky activity (stock investments) into a very safe investment.

[Novy Cendian · Rating 5 out of 5]

Very easy to read and understand. I just started to learn about value investing this beginning of year, and this would be one of the books you need to read before you digest something else heavier. James Pardoe successfully summarize what behaviours need to be picked up to be Warren Buffet's follower in 24 sections.

[Bayu D. Putra]

He told the students, "Read 500 pages like this every day," while reaching toward a stack of manuals and papers.

"That's how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it."

[Ramakrishnan M · Rating 2 out of 5]

For someone who had never heard or read about Buffett this could be useful. But since I had already read a lot about him this was pointless repetition...and that too at a very high level. It just didn't go into depth of how Buffett analyses strength of business

[Andre Hermanto · Rating 4 out of 5]

Good:
* Easy to understand.
* Very informative for non-investors and novices: it's surprising that Buffet's method goes against the market most of them time, including investing in index funds.

Bad:
* Repetitive.

[Alberto Zapata · Rating 4 out of 5]

De capítulos cortos y sencillo de leer. El libro explica los fundamentos básicos de inversión al estilo de Warren Buffett. Recomendado como un libro introductivo a la inversión en valor, de lectura sencilla para principiantes.

[Mechelle · Rating 4 out of 5]

Helpful guide into how Warren Buffett invests. Great if you are trying to learn more about slow and steady investment options.

[Firoz Kathrada · Rating 5 out of 5]

An interesting short book which brings light on Warren Buffett's investment strategies. Without having realised it I have the same strategies.

[Rajendra · Rating 2 out of 5]

some plain gyan, you can't bring home any formula or theory on which an intrensic value is calculated, mostly explained about regular quotes we see from Buffet, nothing in depth.

[Kukuh Tri Widiatmoko · Rating 5 out of 5]

Simple, easy to read, very interesting, and the strategies are acceptable and rasional.

[Ricky · Rating 4 out of 5]

Simple, timeless, and practical. A great easy ready to remind us on the buffett's way

[Shirin Abdel Rahman · Rating 4 out of 5]

نصائح مفيدة.

[Vjekoslav Smolčić · Rating 3 out of 5]

If you want to understand some basic principles of Buffett's way of investing, this is the book for you, skip it if you expect a detailed analysis of his investments.

[Gwen · Rating 3 out of 5]

Kalau sekarang isi buku ini tinggal gugel aja, banyak kok di ceritakan di artikel2 serupa

[Irfan Ramadhian · Rating 5 out of 5]

Perfect mindset to become success investor

[Ferdy Hasan · Rating 3 out of 5]

Decent introduction to Buffett's strategy. but too repetitive, too many similar point in different chapters of the book. The book should've be shorter

[Ahoud · Rating 3 out of 5]

قواعد بسيطه لتحقيق النجاح على المدى طويل ، يقدم بافيت ٢٤ خطه استثماريه تفيد في انجاز استثماراتك .

[Rider · Rating 3 out of 5]

inner battle of detesting capitalism but not wanting to work until i die

[Budi S · Rating 5 out of 5]

Ringan,simple tapi mudah di pahami

[Millyona · Rating 5 out of 5]

This one is smaller and easier than any Warren Buffett’s book. If you have no idea of how to invest this book might be the best basic guide for you. It’s very simple knowledgeable and understandable.

You can finish the book in 2 hours. It taught me many things and some of them are “Buy & Hold” and don’t be a Swing trader. How to not listen or copy other’s style of investing or choices and buy stocks that you understand not just following the trend. You could apply this to any financial instruments.

However, there are writings that repeatedly written again and again maybe for us to really understand. (8,5 / 10)

[Reguera Toledo · Rating 4 out of 5]

muy buenos consejos a nunca olvidar

[Lissibith · Rating 3 out of 5]

Investing in the stock market may be one of the most hyped occupations in the world for stakes and glitz, but oddly enough, this little book makes it sound both approachable... and mundane. In a good way.

"How Buffett Does It: 24 Simple Investing Strategies From the World's Greatest Value Investor" is one of those books that's pretty much exactly what it says on the tin. Author James Pardoe has gone through a number of sources, primarily annual reports written by Buffett about his company, and has culled investment thoughts and strategies out of them to build a plan based on Buffett's own investing strategies.

And, as it turns out, that investment strategy is pretty simple. He favors something called value investing, which again, is just what it sounds like - you find value in the companies whose stock you want to buy, and you buy them, and then you hold onto them because if you did your research and are right, then the company is strong and will stick around and profit - and you get to profit as well.

It's a bit more complicated than that, but this book does a good job of breaking everything down into really easy-to-digest chunks. In fact, that might be one of this book's real weaknesses. It's very simplistic, even a little repetitive, despite being very short - 154 pages of relatively large type and small pages, combined with a cartoon occupying a full page at the start of each of the chapters dedicated to the previously mentioned 24 strategies.

Still, it's a nice little book. It's got some common sense that flies in the face of what media sometimes tells us about stock market investing and it's written in easy-to-understand, plain language. It's very short and very basic, so if you're REALLY interested in investing you'll probably want to start here and then go somewhere else. But it helps establish a wide set of rules and a base investing philosophy.