Even Buffett Isn't Perfect: What You Can--and Can't--Learn from the World's Greatest Investor [Hardcover]

Vahan Janjigian (Author), Steve Forbes (Foreword)

Book Description

Release date: May 1, 2008

A contrarian look at how Warren Buffett thinks about investing and related issues

Warren Buffett is the most successful and revered investor of all time. His ability to consistently find undervalued companies has made him one of the world’s richest men.

Despite many previous books about him, it’s rare to find an objective assessment—one that praises him when appropriate, but also recognizes that even Buffett makes mistakes. For instance, is he right to call for higher taxes and an end to earnings guidance? Should Buffett fans copy his avoidance of technology stocks?

In this penetrating look at how Buffett thinks, Vahan Janjigian shows readers how to learn from the master’s best moves while avoiding strategies that don’t apply to small investors. And he explains Buffett’s favorite valuation methodology, the discounted cash flow model, and how it can significantly reduce the odds of overpaying for a stock.

Product Details

• Hardcover: 256 pages
• Publisher: Portfolio Hardcover; 1St Edition edition (May 1, 2008)
• Language: English
• ISBN-10: 1591841968
• ISBN-13: 978-1591841968
• Product Dimensions: 8.6 x 6 x 0.9 inches
• Shipping Weight: 12 ounces (View shipping rates and policies)
• Average Customer Review: 3.3 out of 5 stars  See all reviews (44 customer reviews)
• Amazon Best Sellers Rank: #1,367,037 in Books (See Top 100 in Books)

Editorial Reviews

From Publishers Weekly

In his introduction, Janjigian notes that to become a successful investor you must be an educated investor, and the best place to start is by examining Buffett's strategies. The author—vice president and executive director of the Forbes Investors Advisory Institute—doggedly follows Buffett's investment trail, scrutinizing the successes and failures of the world's pre-eminent investment celebrity. Janjigian's readable, engaging style carries the reader painlessly through the fundamentals and finer points of investing, assaying Buffett's buying strategies and research methods, while clarifying investment terms and summarizing key points. Although frankly admiring, Janjigian is never fawning and takes pains to make his material clear and compelling; his book is a rounded evaluation of the investment guru's strategies and a useful primer for business neophytes. (May)
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

From Booklist

It’s refreshing to encounter a title about world-famous investment wizard Warren Buffett that doesn’t paint him as a superhero. Despite his many successes, Buffett has made mistakes and not always taken the right steps, as recounted in this measured, objective account that scrutinizes Buffett’s techniques and presents investment fundamentals and strategies. Unfortunately, Casella’s reading is somewhat lackluster. His careful, almost phonetic enunciation of some phrases and sentences makes it seem as if he is seeing the text for the first time. Although monotonous might be too strong a word, his performance could use a little more spark. Casual listeners may tune out, but those who stick with this “penetrating look at Buffett” will gain insight into the respected businessman and learn more about investment strategies. --David Pitt --This text refers to the Audio CD edition.

See all Editorial Reviews

Product Details

• Hardcover: 256 pages
• Publisher: Portfolio Hardcover; 1St Edition edition (May 1, 2008)
• Language: English
• ISBN-10: 1591841968
• ISBN-13: 978-1591841968
• Product Dimensions: 8.6 x 6 x 0.9 inches
• Shipping Weight: 12 ounces (View shipping rates and policies)
• Average Customer Review: 3.3 out of 5 stars  See all reviews (44 customer reviews)
• Amazon Best Sellers Rank: #1,367,037 in Books (See Top 100 in Books)

More About the Author

Vahan Janjigian grew up in Wynnewood, Pennsylvania and attended Lower Merion High School in Ardmore where he developed a life-long love for track & field. Vahan holds degrees from Villanova University and Virginia Tech and taught courses in corporate finance, investments, economics, and accounting at various universities. He was a Forbes magazine columnist and Editor of the Forbes Special Situation Survey for 15 years. Under his leadership, this investment newsletter generated annualized returns of 17.7% during one of the market's worst 10-year periods. He currently serves as Chief Investment Officer at Greenwich Wealth Management, LLC where he structures equity portfolios for clients in separately managed accounts. Vahan also serves as Editor of the Money Masters Stock Report and blogs about the economy and the markets at www.janjig.com.

Most Helpful Customer Reviews

17 of 21 people found the following review helpful

5.0 out of 5 stars Buffett May Not Be, But Janjigian Is July 1, 2008

By Jon Weiman

Format:Hardcover

Vahan Janjigian is eminently qualified to write a book on Warren Buffett. To those who have misunderstood the title; it is meant to be ironic.
The book is a well researched and very informative analysis of Warren Buffet's success as well as a detailed explanation of various investment strategies. The language in the book is both erudite and colloquial in tone; and gives one the sense that the author is very comfortable writing on this subject. It reveals not only that Warren Buffet has, over the years, managed to be a world class investor by utilizing his research, instincts, judgment and patience; but that his refusal to bend to market trends has made him an outstanding long term builder of wealth.
The author's unique way of explaining both the academic aspects of the Buffett formula and using more common language, at times, to give a more baseline understanding of Buffet's success, make the book a highly readable text. I recommend it highly.

13 of 16 people found the following review helpful

5.0 out of 5 stars Best Book on Buffett May 16, 2008

By Digestive Biscuit

Format:Hardcover

The title is kind of a misnomer. True that the author points out some of Buffett's investment mistakes. He also highlights what seem to be inconsistencies in the investment guru's approach. Yet the author never attacks the man directly. And he actually rains proper praise for all of the things Buffett's done right. To me it showed that everyone is human and prone to mistakes. As the author puts it, it's Buffett's ability to minimize mistakes while maximizing his successes that's truly made him a star.

Another aspect of the book I found to be more than a pleasant surprise was just how level-headed it was. Having read a number of investment-themed books, I can be sure that all good ones will present a heavy dose of what I like to call "financial science". Given that most investment strategies are based on some foundation of financial theory, this makes sense. But while many of these can get a bit too technical, the author does a good job of communicating relevant concepts without requiring the reader to have a degree in finance. Indeed, I initially cringed when he brought up the concept of correlation coefficient -- two words many of us probably haven't heard since high school. But his explanation of this and other important concepts were very easy to follow and rooted in common sense. He also doesn't inundate you with these concepts, only focusing on those that are required to help understand how Buffett invests and why it has worked so well for so long.

I enjoyed all of the chapters and felt the final ones -- which criticize Buffett's views on a few key issues such as taxes, corporate governance, and earnings guidance -- were especially well argued. However, my favorite, and perhaps most sobering, part of the book was when Dr.... Janjigian distinguishes between business buyers and stock buyers. Specifically, he notes that while Buffett falls into the former category, most individual investors are stuck in the latter. This key distinction -- more than any other -- is the reason we realistically should not hope to duplicate Buffett's success. This was a refreshing change from so many other books that simply praise Buffett as an investment genius and suggests "foolproof" strategies that you can use to mirror his success. This author, too, has praise for the man. But he is very frank on how Buffett has made and maintained his fortune, and educates the reader on what is realistically possible when it comes to learning from the "World's Greatest Investor".

A very enjoyable read all around. I'd strongly recommended to anyone looking to for honest insight on Buffett, as well as, to anyone simply looking for a nice, easy to follow book on investing. You won't be disappointed. Read more ›

10 of 12 people found the following review helpful

5.0 out of 5 stars Evenhanded Analysis of Buffett July 7, 2008

By Peter Brennan

Format:Hardcover

In full disclosure, I am a friend of the author and have sat on two industry corporate governance committees with him. The qualities that I observed him exhibit on these committees including a willingness to examine issues from all prospective and to go beyond conventional analysis is what makes, "Even Buffett isn't perfect" such an important book. This book is probably the most evenhanded analysis of Buffett - his strengths and weaknesses (everyone has them). Dr. Janjigian's critique of Buffet's positions on taxation and estate taxes, should be required reading for all politicians.

What makes this book so useful is that Dr. Janjigian writes in a clear and straightforward style that is easily accessible to the nonprofessional. At the end of each chapter there is summary of all the major points discussed in the chapter.

The author focuses on the key topics of investing including diversification, compounding and investment style, explaining to the reader what aspects of Buffet's approach the reader should emulate and what parts of Buffett's approach the reader needs to modify.

I strongly recommend this book because most readers will find the well thought out investment principles simply presented, allowing readers to easily adapt them to their own investment programs.

7 of 8 people found the following review helpful

5.0 out of 5 stars Great Investment Reading July 17, 2008

By Anne Sumers

Format:Hardcover

In a few short pages, the author summarizes the wisdom, and occasional errors of the greatest investor of all time. The executive summary for each chapter, makes the author's analysis available to even the most impatient reader. Defintely a top choice for summer time investment reading, particularly in these troubled times.

7 of 8 people found the following review helpful

4.0 out of 5 stars Even Buffett Isn't Perfect June 28, 2008

By Enith M. Williams

Format:Hardcover

Vahan has a wonderful writing style that is simple and easy to understand which communicates his complete and thorough understanding of Buffett, his investment style and the markets and investments in general... An easy read and one worth doing, I feel smarter for having read this great little nugget of a book.

7 of 8 people found the following review helpful

5.0 out of 5 stars Informative and Interesting June 16, 2008

By Patrick

Format:Hardcover

This is a sophisticated and mature book looking at investing policies and strategies, shunning the emotional contagion of the street. It is presented in the "Warren Buffett" model and is a must read! I really loved this book.

19 of 25 people found the following review helpful

1.0 out of 5 stars Worthless! October 24, 2008

By Loyd E. Eskildson HALL OF FAME

Format:Hardcover

"Even Buffett Isn't Perfect" provides no useful advice for investors and wastes the reader's time. Suggest instead something by Mary Buffett, or the new book "Snowball," by Alice Schroeder.

"Even Buffett Isn't Perfect's" first chapter goes through a bloviated and pointless discussion of diversification trying to somehow make something out of the fact that Buffett recommends diversification (actually - a low-cost index fund) for others who don't have the stock research time and mindset that he does, while focusing his investments when he started out to get maximum impact. Now, given the tens of billions in Buffett's portfolio, he can no longer focus like he once did. Pretty simple - right? Unfortunately, the book took some 20+ pages to do the same.

Then its off to another worthless discussion of Google vs. Washington Post. Buffett doesn't like investing in new "transforming" companies because they lack of track record and most fail in the initial stages of competition. In addition, he doesn't like technology stocks because he recognizes he doesn't know enough about the field to adequately assess. Saved you another 20+ pages of blarney.

Janjigian believes Buffett is wrong in opposing momentum investing ("follow the crowd," at least for awhile) and cites two supporting studies. Reality, however, is that academics rarely agree on anything, and I'd bet there are at least another two studies that contradict Janjigian's point.

Eventually, Janjigian gets to what really upsets him about Buffett - the fact that Buffett favors higher taxes for the wealthy and opposes ending the estate tax. That has nothing to do with investing strategy!