Customer Reviews

How to Pick Stocks Like Warren Buffett: Profiting from the Bargain Hunting Strategies of the World's Greatest Value Investor

5 star:		(12)
4 star:		(5)
3 star:		(2)
2 star:		(1)
1 star:		(3)

 

 

Legendary billionaire Warren Buffett is considered by many to be the world's greatest value investor. "How To Pick Stocks Like Warren Buffett" is a book that guides the ordinary investor though Buffett's methods to profit using his bargain hunting strategies.

As Buffett is quoted as saying in the book, "To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing nothing of these. That, of course, is not the prevailing view at most business schools, whose finance curriculum tends to be dominated by such subjects. In our view, though, investment students need only two well taught courses - How to Value a Business, and How to Think About Market Prices."

"How To Pick Stocks Like Warren Buffett" does detail effectively, in easy-to-understand language, Buffett's methodology in analyzing and evaluating businesses and attitudes about market prices, as well as the investment decision-making process, and philosophy about developing good investment habits.

Buffett's rules and methods for investment success are carefully outlined, including the importance of developing a mathematical mind, using a buy-and-hold strategy for companies with strong franchises, growing book value and return on equity, using the magic "15 Percent Rule", comparing stocks to bonds, avoiding losses, and stringing small gains together with takeovers.

"How To Pick Stocks Like Warren Buffett" contains charts and case studies with pertinent and contemporary examples, including studies of technology companies. A chapter, "Your Competitive Advantage Over Buffett - The Internet", details several web sites that provide information, research and investment tools for value-oriented investors.

This book is relevant for value conscious investors who wish to formulate an intelligent and consistent approach to investment management.

I really liked Timothy Vick's "Wall Street on Sale" and bought the current title sight unseen. There's been a lot written about Buffett's investing style and valuation philosophy. This book gives an overview of the basics. I really liked the section on Buffett's use of risk arbitrage because it has traditionally received short shrift in previous books. My problem with this book is that someone must be asleep at the proofreading wheel at McGraw-Hill. Don't they use a spell or grammar check? These tools don't cost much and they would seem to be essential to a publishing house. As an example I offer this transcript of the first sentence of the last paragraph on page 42. "If anything, the data suggest that companies are doing were performing or worse than could normally be expected nine years into an economic expansion." That's just one blatant example. There are mispellings too. This is a problem because it calls into question, rightly or wrongly, Mr. Vick's research. If there are problems with the text, could there be problems with the numerical tables? This could easily have been a five star book, but I'm stretching my charitable inclinations when I give it three.

Timothy Vick is a fairly well known advocate for value investing, but in his latest book, he rolls out the mother-of-all value investors as a champion. In using Warren Buffett as the basis for his easily digestible lessons on value investing - the simple strategy of investing in companies that are currently undervalued by the market - Vick proves that the concept of an engaging investment book is not an oxymoron. By holding up the Buffett example, Vick illustrates the greatest axiom of value investing: Over time, the price of any asset will find its intrinsic value. Buffett clung to this mantra throughout the `90s, missing out on some of the biggest market returns in history. We [...] strongly recommend this book for its clear explanation of how Buffett analyzed the New Economy market and how you can mimic him going forward. Because in the end, he was right and they were wrong.

I've read about 5 "Buffett" books and they ranged from utter garbage (the daughter-in-law books) to the mildly interesting. None really helped me invest better.

This book is different. I've read it probably 10 times now. Every chapter can change they way you think about investing.

The writing is clear and simple.

What follows is a totally groundless statement - i have zero evidence of this - but... the only other writer I know who writes so clearly on investment is Buffett himself, which leads me to suspect he may have been involved in the writing of this book ...or maybe Buffet is the real writer. (apologies to mr vick - take my comment as a compliment if you really did write this)

Even if Buffett isnt the real writer, my guess is that this is the book he would write.

It's my favourite book on investment. I have five or so copies at any one time and hand them out to friends who ask me for investment advise.

This book is superb reading. If your new to investing in the stock market I would recommend this to be the first book to read. Timothy Vick breaks down every possible thing you would need to know to get started in an easy and understandable way.

The author lays out a clear methodology and reasoning for value investing, as done by Warren Buffet -- modified from the old style Benjamin Graham, who was Warren's mentor. The book is easy and enjoyable to read.

I underlined this book considerably. Although I doubt this book contains all the wisdom of the Sage of Omaha, it is reasonably complete. For that I recommend that you buy and read this book on value investing.

The methodology of Buffet-style value investing is easy to do, but the odds are against our patience in waiting for the right buy price. The itch for action to trade is often overwhelming. I guess that is why Warren Buffet has proved that, for him, it is indeed an inefficient market. Some must lose so that he can win. :)

John Dunbar
Sugar Land, TX

Multi-billionaire Warren Buffett does not hide the fact that his goals are to amass wealth--and neither does Mr. Vick's book. The author's book mirrors the extraordinary passion (for, after all, Mr. Buffett invests in people--and passionately, as readers shall learn) that drives the unprecedented success of the holding company Mr. Buffett manages, Berkshire Hathaway. This book was written by a self-professed "disciple," not a biographer, of Mr. Buffett, his work, both past and in-progress. For a novice such as I, the book was anything but a "soap box" preaching on "how to become." Rather, this is a magnum opus--a comprehensive, easy-to-follow true "inside look" at a buck-the-trend investor--the very principles, products, services and industries he understands through "years of the fun of making money and watching it grow." Sure, Mr. Vick "scratches the biographical surface" of this legendary professional--how could he not? After all, Mr. Vick himself has come to know Mr. Buffett--through extensive research, Mr. Vick's own tried-and-true Contrarian investing and more. "How to Pick Stocks Like Warren Buffett" contains unique insight on Mr. Buffett, the man, and Mr. Buffett's strategies for gaining market-winning results, estimating a company's future earnings and measuring the yardstick of this mentor's investment portfolio. Written by an award-winning journalist and analyst who routinely offers objective and articulate insight to the national media, including TV and radio--I've taken the trouble to track his quotes; hence, my submission of my review--this book was a great starter for a reader who simply wanted to know more about this legendary figure--and the professional, particularly, his convertibles, options and other "secret weapons." At worst, it's a mere tool for helping to shape--agree or disagree with Mr. Vick's/Mr. Buffett's philosophy--your own investment strategies. Are you into arbitrage? Read and learn. At its very best, this book shines with its breadth on Mr. Buffett's lead. It's filled with in-depth tips for how to follow Mr. Buffett's clearly outlined set of tracks. Again, this was written with keen turn-of-phrase--concisely and with the understated depth of a consummate newspaper reporter and analyst extraordinaire. A real page-turner. I've read Mr. Vick's previous books; I now look forward to his next.

What a great book to read when the market is rethinking its value. Vicks, along with Buffett preach value, and as the market is trying to adjust to very high valuations this book is a wake-up call to investors. Only buy quality, and only at the right price. Even good stocks can become over valued, then they become expensive good stocks that we shouldn't buy. Be patient and buy good stocks at the right price. Remember this point and you will do well in the market. This book will give you that insight. It's well worth the investment.........

This is another great book for investors interested in learning value investing practiced by Warren Buffett. The chapter that I found the most helpful was Chapter 11: Understanding Return on Equity. The return on equity formula is very simple because it is net income divided by equity. Even though I have a degree in finance with concentration in accounting, I found this chapter very helpful because sometimes people have to be told certain things ten times before it finally clicks. This is how I felt about this chapter. It made me really understand the return on equity concept better. And in the end, it made me a better investor. I highly recommend this book to anybody, no matter what level.

- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

This is an excellent mid-level (complexity) book. It starts out with basic information that you could get in any Buffett book but finishes with some solid tips and advice. Mr. Vick rephrases some common quotes that I have heard in a way that allowed me to better understand it. He also has a bunch of links to good websites in the back. Definitely worth the time to read.