BOOK REVIEW ON

WARREN BUFFETT
WEALTH
 PENNED
PENNED BY
BY

Robert P Miles is an investment advisor,

International speaker,author and
acclaimed Warren Buffet expert. www.robertpmiles.com

He is a graduate of the University of Michigan

Business school.

Miles is also the author of “Warren Buffett’s

Berkshire Hathaway”, “The Warren Buffet CEO” .
 THE
THE SECRET
SECRET OF
OF WEALTH
WEALTH

This book is all about a man who,without any inheritance,

without taking over a family business created abundant
wealth and plans to give it back to society.

Forbe’s Richest Man of the year 2008(U.S.$62.0 billion)

…. Who Forbe’s readers think should be the next U.S.
President.
An Australian writer and businessman from Hong Kong

Founder of the investment news letter “World Money

Analyst”

Mark Tier.
‘The nature of market cycles…..

How to get a second passport….’

He also coaches investors who want to

transform their Investment results.
 The Master Investors

Mark Tier describes the same mental strategies

and behaviour of Soros and Buffet
They share the same beliefs about the nature of the market.

They are not focused on the profit.

More focused on not losing money than on making it.

And Tier says, there are 23 mental habits that they share
in common.

Both were Ice Breakers

 Deadly investment sin…………….
# Believing that you have to take big
risk to make big profits……

But remember Risk is contextual

 The sage of Omaha

Warren Edward Buffet

Born : 1930,Omaha.
Occupation : CEO, Berkshire Hathaway

Salary : US$ 100,000

Net Worth : US $ 62.0 billion

A 20% return at the age of 6
A new business venture at the age of 20
Early career as a stock broker
Berkshire Hathaway
 Buffet’s key tenets

•Turn off the stock market.

•Don’t worry about the economy.

•Avoid risk.

•Manage a portfolio of business.

•Maintain a circle of wealth.

THE
THE NINE
NINE
SECRETS
SECRETS

OF
OF

BUFFET
BUFFET
Secret # 1: Invest in quality businesses,
not stock symbols

Playing bridge without looking at the cards.

Buffet says: “when I buy a stock, I think of it in terms of

buying a whole company

Just as if I were buying a store down the street.”

Secret # 2 : Don’t invest for ten minutes
if you are not ready for ten years

He stresses the importance of long term investing.

As investors, we focus on the medium to long

business features of companies.

Be a cautious investor.

Like stress on growth rate and stability of growth.

Secret #3: Scan thousands of stocks
looking for screaming bargains

“If (the investment) doesn’t

scream at you,it’s too close”
 Secret #4: Calculate how well
management is using the money they
have

 “Good returns on equity while employing

little or no debt.”
 Secret #5: Stay away from “glitter”
stocks

 “Most people get interested in stocks when

everyone else is. The time to get interested is when
no one else is. You can’t buy what is popular and
do well.”
 Secret #6: Know what a fat pitch is and
what to do with it

 Home run stock

 Small no. of companies in portfolio
 Knowledge and Confidence

“Risk comes from not knowing what you are

doing”
 Secret #7: Calculate how much money
you will make, not whether the stock is
undervalued or overvalued according to
some academic model.

•Think independently
•Invest in high-return businesses that are run for
the shareholders
•Pay only a reasonable price, even for an
excellent business
• Invest for the long term
•Do not diversify excessively
Secret #8: Remove the weeds and water
the flowers — not the other way around

 Strategy 1: selling profitable stock and retaining

losing stock.
 Strategy 2: selling losing stock and retaining
profitable stock.
 Secret #9: Become a conscious investor

 Model Portfolio and Watch List

 Steps to be followed
Selecting Great Companies in Minutes
Avoiding Wealth Destroying Companies
Buy at Your Price
 Criticism

Berkshire net sinks; Buffett says economy in shambles

 Quarterly net income for Omaha, Nebraska-based
Berkshire sank 96 percent to $117 million, or $76 per
Class A share, from $2.95 billion, or $1,904, a year
earlier, based on company filings. Revenue fell 12
percent to $24.59 billion
 Berkshire's net worth fell to $109.27 billion at year end
from $120.16 billion at the end of September, and
$120.73 billion at the end of 2007.
 Date: 28-Feb-09
 Source: Reuters
Conclusion