Summary: Warren Buffett Wealth

Review and Analysis of Miles' Book

BusinessNews Publishing

• Publisher: Must Read Summaries
• Year: 2016
• ISBN:
  9782511016992
• Topic: Business
• Subtopic: Azioni
• Index: Business

The must-read summary of Robert Miles' book: `Warren Buffett Wealth: Principles and Practical Methods Used by the World's Greatest Investor`.

This summary of the ideas from Robert Miles' book `Warren Buffett Wealth` shows that the key to creating enormous wealth isn’t to constantly try to time the market’s peaks and troughs. Instead, to become wealthy, carefully select businesses you’d like to own, invest significant amounts of capital into those companies and then aspire to owning them for a lifetime. This summary provides the principles and practical ideas that you should follow in order to make the right investment.

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To learn more, read `Warren Buffett Wealth` and discover the key to becoming a better investor.

Summary of Warren Buffett Wealth (Robert Miles)

1. Study the best in every field – and then emulate them

Warren Buffett studies the best in every field of human endeavor. He then takes the principles of excellence gleaned from other sources and grafts them into his own investment philosophy and practices. This, he believes, is one key to outperforming the average investor.

To become the world’s foremost investor, Warren Buffett follows some notable yet common-sense practices:

1. Buffett believes the traits which allows anyone to excel in their field are transferrable. Therefore, he studies high achievers who have dedicated their entire lives to doing one thing well – like Tiger Woods in golf, Martina Navratilova in tennis, Arnold Schwarzenegger in body building and so on. Warren Buffett studies their successes for clues he can use in becoming the best at creating wealth by investing in other people’s businesses.
2. Warren Buffett understands wealth is created and preserved more efficiently by owning a business than by any other means. Accordingly, he takes the earnings from one enterprise and deploys them into more businesses, creating a snowballing effect which is increasing in momentum over time.
3. Buffett focuses all his personal time and talents on becoming the best at investing other people’s money. He has created billions in wealth for himself and his other Berkshire shareholders by investing successfully in other people’s businesses, which is impressive and unique.

“Tell me who your heroes are and I will tell you what kind of person you will be. At first, the chains of habit are too light to be felt and then later, too heavy to be broken.”

– Warren Buffett

“Warren Buffett hasn’t invented anything new and doesn’t own any patents. He has never started a business and has never taken the day-to-day management of one. The Oracle of Omaha is so good that he doesn’t even need to talk to management, access inside information, or even visit company headquarters of the businesses in which he invests. Assuming, however, that you study, understand, and employ the same Buffett principles, you too can achieve outstanding market-beating results. Knowledge counts more than experience and business contacts.”

– Robert Miles

“Try not to become a man of success, but rather try to become a man of value.”

– Albert Einstein

“Growing a small $10 million to $100 million is easier than it will be to increase $100 billion in market capitalization to $1 trillion. This is the most encouraging statistic for those investors willing to spend the time and effort to employ Buffett’s methods. The small investor, equipped with the same Buffett principles and strategies, has far more investment opportunities than an investment company worth over $100 billion – even if the world’s greatest capital allocator is at the helm.”

– Robert Miles

2. Know what kind of investor you actually are

Take the time to determine what kind of investor you genuinely aspire to be. This decisions will lie at the very heart of your ability to create wealth.

To determine your own investment style, ask yourself:

• Am I a passive investor (hands-off) or an active investor (hands-on working alongside management)?
• Am I an investor (long-term owner of a business) or a trader (short-term owner looking for a quick capital gain)?
• Do I view myself as a stock market speculator or a business owner (concerned with what’s going on inside the business)?

Warren Buffett is a long-term business owner. He never buys companies that don’t have strong leadership already in place. Nor does he buy stock in turnarounds, start-ups or tender offers. He is more attracted to a well-run business which is available at a reasonable price than he is to a bargain. In short, he is an intelligent value investor with a very long time frame.

A value investor knows the difference between intrinsic value and book value. Value investors like Warren Buffett buy whenever a company’s market value or asking price is below its intrinsic value. To determine intrinsic value:

• Be prepared to do your own research and your own thinking. Warren Buffett does his homework on investments, and never subscribes to investment newsletters. He makes up his own mind rather than trying to ferret out the latest stock tip.
• Offset risk by knowing what you’re doing. Buffett will frequently follow a company for decades before purchasing stock in it. For that reason, he often buys “storybook” stocks – old economy stocks...