Investment Management – Learn The Mindset and Philosophies from the Investment Masters of Warren Buffett
The first one is: Benjamin Graham, who is the acclaimed the Father of financial analysis.
There are two classic investment by Benjamin.
* Security Analysis, coauthored with David Dodd
* The Intelligent Investor
What are the main rules from Graham:
* The first rule is don’t lose.
* The second rule is don’t forget rule number one.
The second teacher of Warren Buffet? He is Philip Fisher, who is famous for his Investment profitability principles:
* investing in companies with above-average potential. Company’s ability to grow sales over the years at rates greater than the industry average
* consistent profits with the most capable management. A company must instill adequate accounting controls and cost analysis
The third teacher is John Burr Williams, whose key teachers are:
* The Theory of Investment Value, Williams’s famous doctoral dissertation and genuine classic
* Warren Buffett calls it one of the most important investment books ever written
* Williams’s theory, known as the dividend discount model, or discounted net cash-flow analysis
* Buffett condensed Williams’s theory as: “The value of a business is determined by the net cash flows expected to occur over the life of the business discounted at an appropriate interest rate.”
* Williams described it this way: “A cow for her milk; a hen for her eggs; and a stock, by heck, for her dividends.”
Last but not least is Charles Munger:
* Buffett’s a life long investment partner and alter ego
* Vice chairman of Berkshire Hathaway
That’s it. Hope you’ve learned something from the teachers of Warren Buffet.
