Buffett and Value Investing: Hagstrom, Connors, Browne
Trader's Library #72 · Investing and the stock market. Buffett's philosophy in several books, for a trader mainly as a lesson in patience.
Author: Robert G. Hagstrom, Richard J. Connors, Christopher H. Browne · Original: The Warren Buffett Way; The Warren Buffett Portfolio; Warren Buffett on Business; The Little Book of Value Investing · Year: 1994 · Usefulness for traders: ★★☆☆☆
What it's about
Books on Warren Buffett's method: Hagstrom's “The Warren Buffett Way” and “The Warren Buffett Portfolio”, the collection “Warren Buffett on Business” edited by Connors, and Browne's “The Little Book of Value Investing”.
What it gives a trader
For a trader the value is mainly philosophical: patience, the circle of competence, ignoring noise and thinking in probabilities. The rule “be greedy when others are fearful” describes the psychology of extreme sentiment well.
Lessons for traders
- stay within your circle of competence
- you don't have to react to every opportunity
- extreme fear and euphoria create opportunities (herding, Atlas of biases #31)
What to watch out for
These are books about Buffett, not by him. Some repeat the same principles.
Discussion
The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →
Navigation
← #071 Valuation and Textbooks: Damodaran, Rappaport, Mayo, Ritchie, Tim Lee · Library index · #073 John C. Bogle: The Little Book of Common Sense Investing and Enough →
Educational content, not investment advice. The book description is my own summary and assessment, not quotations. Edition details were checked in catalogues and bookshops, and where there was doubt I said so plainly.