Buffett: The Making of an American Capitalist [Paperback]

 

 

Create your own review

Were it not for the nature of his specialty--making lots of money through intelligent investments--Warren Buffett might well be considered an idiot savant. Instead, because he is inordinately wealthy, he is viewed by his admirers as something of a demigod.

Mr. Lowenstein is one of those admirers. Despite the rather clear evidence that Mr. Buffett's personal life is a shambles, Mr. Lowenstein describes it in the most glowing terms. Hey! If you're rich, you must be happy!

As far as Mr. Buffett's investment philosophy is concerned, Mr. Lowenstein provides much useful background information and makes the point that it has evolved over time. In other words, like any other professional, he thinks about what he is doing.

Personally, I found "The Midas Touch" by John Train and Buffett's own letters to the shareholders of Berkshire Hathaway (which are available in book form) more interesting and useful. They're also much more concise.

Note: The review that follows is of the Second Edition.

I recently re-read this Buffett biography (first published in 1995 and now re-issued with a new Afterword, dated January 2008) and then read Alice Schroeder's The Snowball: Warren Buffett and the Business of Life. Both are first-rate. Which to select if reading only one? That depends on how much you wish to know about Buffett's personal life, including his relations with various family members, and how curious you are about his personal hang-ups, peculiarities, eccentricities, fetishes, etc. If you can do without any of that, Roger Lowenstein's biography is the one to read. I also highly recommend the recently published Second Edition of The Essays of Warren Buffet: Lessons for Corporate America, with content selected, arranged, and introduced by Lawrence Cunningham.

In fact, I'd now like to provide a brief excerpt from Cunningham's Introduction: "The central theme uniting Buffett's lucid essays is that the principles of fundamental business analysis, first formulated by his teachers Ben Graham and David Dodd, should guide investment practice. Linked to that theme are management principles that define the proper role of corporate managers as the stewards of invested capital, and the proper role of shareholders as the suppliers and owners of capital. Radiating from these main themes are practical and sensible lessons on the entire range of business issues, from accounting to mergers to evaluation." Lowenstein does a skill job of examining the context in which various lessons were learned, both by Buffett and by those with whom he was associated. In fact, one approach to his life and career is to examine in terms of student-teacher relationships such as Buffett's with Graham and Dodd as well as others' with Buffett, notably Katherine Graham and those who comprised the "Graham Group": Jack Alexander, Ed Anderson, Henry Brandt, Robert Brustein, Buddy Fox, David ("Sandy") Gottesman, Tom Knapp, Charlie Munger, Bill Ruane, Walter Schloss, Roy Tolles, and Marshall Weinberg. Munger is probably the most important of these associates for reasons best revealed in the narrative. It is worth noting that when Lowenstein was about to begin what proved to be three years of research and then the writing of this book, Buffett informed him that he would do nothing to block his efforts nor would he do anything to assist them. In the Afterword, Lowenstein recalls his first post-publication encounter with Buffett at Berkshire Hathaway's annual meeting in1996. Despite everything that had happened in Buffett's life and career during the previous 45-50 years, Lowenstein observes that "Very little in the portrait, and nothing in the investment profile, has changed." His consistency "may be his least appreciated trait."

As does Schroeder but in somewhat greater detail, Lowenstein rigorously examines subjects that include:

1. The development of Buffett's business philosophy
2. His most important business relationships over the years
3. His most important personal relationships over the years
4. His non-negotiable values
5. What Berkshire Hathaway accomplished under his leadership as CEO
6. Buffett's insecurities
7. His views on philanthropy
8. His social awareness
9. His relationship with Melinda and Bill Gates
10. Why no one else has achieved comparable results by following Buffett's advice

Joe Nocera shares his own thoughts in response to the last point in a profile of Buffett that reprinted in Nocera's book, Good Guys and Bad Guys: Behind the Scenes with the Saints and Scoundrels of American Business. "I think the answer is twofold. First, truly great investing requires a temperament that very few people have. For most of us, it is difficult not to panic when the market tanks, for instance. It is hard not to want to jump on the hot stock, even if we know nothing about the business. The ups and downs of the market are stomach-churning events. The fundamental equanimity required to be a great investor is an extremely rare thing.

"The second reason we don't invest like Buffett is that his methods are far more complicated than they sound. Think about it: When Buffett talks about the `economic prospects' of a potential investment, what he means is that he wants to be able to see where the business will be 10 years from now. If he can see the business remaining dominant for the next decade, he'll consider buying the stock."

"One of the most important reasons for difference [i.e. being able to determine whether or not a business will remain dominant for the next decade] goes almost entirely unacknowledged among those who hope to find in Buffett an easily reproducible investing style. He is a genius when it comes to numbers. `Accounting,' he likes to say,' is the language of business.' It is a language in which his own fluency is unsurpassed, and which gives him an enormous competitive advantage. Usually, all he needs is a quick glance at a balance sheet to know whether he's interested in buying a company or not - because he finds meaning in numbers that the rest of us don't."

Warren Buffett is among the most effective CEOs in recent business history (at least since the conclusion of World War II) and there is certainly a great deal of value to be learned from his performance as both a leader and a manager. Although a business icon, he is also an exceptionally human being because of a unique combination of insecurities, hang-ups, fetishes, neuroses, etc. that various loved ones (notably wife Susie, daughter Susie, and companion Astrid) were able to manage with exquisite sensitivity. Like so many others, he cares more and more deeply than he is (generally) able to express. That said, one close associate and dear friend, Bill Ruane, suggested to Lowenstein after his book was published, "I'm not sure if you captured how [begin italics] tough [end italics] Warren is." Perhaps no one can but credit Roger Lowenstein with providing in this volume a thorough, balanced, multi-dimensional , and insightful explanation of how an ordinary man in almost every other respect accomplished greater success in business than almost anyone else ever has...or ever will.

Absolutely great book on the greatest investor of all time. The author of the book has done a remarkable and extensive research of anything and everything that is Warren Buffett. From before his birth up until around 1995, the book is filled with details about Warren Buffet's life, personality, and investment strategy. Although there are countless books about his life, I think this one ranks as the best in terms of details and writing style; the book never fails to entertain and keeps you highly interested. Buy this book, it is a great addition to any collection, a story of an unparalleled phenomenon.

Share your thoughts with other customers: Create your own review

› See all 63 customer reviews on Amazon.ca

 

5.0 out of 5 stars Anything and everything about Warren Buffett
Did you know that Warren Buffet started a number of businesses while he was still a student? Did you know that he obtained a masters degree at the age of 21? Read more

Published on April 6 2008 by Mootstreet

5.0 out of 5 stars Best Buffett Book Ever
I've read a lot of books about Warren Buffett and this is by far my favorite. If you have to read only one, read this one.

Published on Jun 15 2004 by Bookwormy

5.0 out of 5 stars Excellent reading
I found that I knew so little about Warren Buffett, and this gave me a wealth of knowledge. Unfortunately, the book was written before the tech boom and subsequent collapse... Read more

Published on May 6 2004 by Himmey

5.0 out of 5 stars How Buffett Thinks
This book helps you understand how one of the greatest business thinkers of all time got that way. (How would Buffett approach a paper route as a boy, for example? Read more

Published on April 16 2004 by J. Camp

5.0 out of 5 stars The Most Comprehensive Biography Yet
This is a superbly interesting look into the life of Mr. Buffett. In my opinion, the most fascinating reading involves Warren's early years, as he learns to craft his genius and... Read more

Published on Mar 1 2004 by doug1022

5.0 out of 5 stars Five-Star Book
I am a professional investor and have been following Mr Warren Buffett for a very long time but it was only after I read Mr Lowenstein's Five-Star book that I understood -- as... Read more

Published on Jan 22 2004 by Paul Azzopardi

5.0 out of 5 stars Read about Buffett and be inspired.
I honestly can't say what drove me to read this book: all I know is that at some point, I knew I had to read about Warren Buffett. Read more

Published on Dec 30 2003 by J. N. Owings

4.0 out of 5 stars classic business book/bio
Thorough, thoughtful, well-written biography of the greatest investor in last 50 years. Educational, thought-provoking and entertaining. Read more

Published on Oct 9 2003 by R. C. Kopf

5.0 out of 5 stars Buffett Unplugged!
I was given this book as a gift from a former assistant when I was a financial advisor many years ago. I just got around to reading it recently. Read more

Published on Aug 30 2003 by mgdassets

5.0 out of 5 stars Best of the Buffett Books
Lowenstein is to Buffett what Gleick is to Richard Feynman. This is easily the best of the Buffett books. Read more

Published on Aug 10 2003 by Greg T. Smith

Search Customer Reviews
Only search this product's reviews

› See all 63 customer reviews on Amazon.ca

Search Listmania!