James: If you appreciate Buffet, you will extol BUFFETOLOGY. My sense is that Mary Buffet distils the confusion concerning his methodology, the misunderstanding about his shorter-term holdings (which accounts for 25% of his return over the years), his understanding of the stock of extraordinary companies as an "equity/bond with an expanding coupon," a thorough explanation of "business-like investing," how the magic of compounding is a pillar of his philosophy, the "expanding intrinsic value," the necessity of a minimum 15% return, the myth of diversification, his view of earnings, how the avoidance of taxation for as long as possible is central to his methodology, how he no longer quantifies a stock's intrinsic value. I think she explains very well the differences between Buffet's methodology and pure Grahamesque value investing.
Mary has astutely written the book in two sections: qualitative, then quantitative in an easy-to-understand format.
Thus far, after one complete reading, my only disappointment is her catty, grossly abbreviated explanation of Buffet's sell strategy.
I'm hoping that some of the seasoned value investors, such as yourself, that frequent this thread will read the book and dialog about it.
Thanks for your response.
John |
