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Pukka's Book Review: The Warren Buffet Way by Robert Hagstrom

Written in 1994, there has been much written about Buffett since—but none of it compares to this edition that lays out Buffett’s core principals. There are many books with ‘Buffett’ in the title because the name sells, but this book is all you need to understand the $74 billion-dollar man. This read contains a detailed analysis of Buffett’s principal investments through his early partnerships—and detailed descriptions of the circumstances under which some of those investments were actually made. This alone makes it great learning material for anyone interested in trying to emulate him. Some questions to ask when investing include: Is the business simple and understandable? Does the business have a consistent operating history? Does the business have favorable long-term prospects? Is management rational? Is management candid with its shareholders? Some of Buffett’s rules when investing include: Focus on return on equity, not earnings per share; look for companies with high-profit margins; for every dollar earned, look for at least one dollar of market value created. Buffett is unemotional, has a long-term focus and is unafraid to bet big on his ideas. Investing doesn’t have to be complicated. Don’t try and play the market or you will get played. The Warren Buffett way has produced $74 billion. I can emulate that!

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