|New from||Used from|
No Kindle device required. Download one of the Free Kindle apps to start reading Kindle books on your smartphone, tablet, and computer.
To get the free app, enter your e-mail address or mobile phone number.
It's no secret that most mutual funds fail to beat the performance of the S&P 500. And if the pros can't beat the averages, it's not unreasonable to assume that most individual investors can't, either. Why? According to Robert Hagstrom, author of The Warren Buffett Portfolio, a big reason is the industry's emphasis on diversification. In the interest of minimizing risk, many investors have "become intellectually numb to its inevitable consequence: mediocre results." As a result, they wind up owning too many stocks and churn their portfolios unnecessarily (for example, the average mutual fund holds 100 stocks and turns over 80 percent of its portfolio annually). In The Warren Buffett Portfolio, Hagstrom shows how Buffett and others use the idea of focus investing to organize winning portfolios.
Unlike Hagstrom's first book, The Warren Buffett Way, which describes how the world's greatest investor selects individual companies, this book looks at the mathematics, the psychology, and the mental models necessary to build a successful portfolio. The basic ideas: Pick no more than 10 to 15 companies with good track records and high probabilities of future success; plan to hang onto them for at least five years; and ignore predictions and the sometimes terrifying swings in market behavior. It's hard to argue with Hagstrom's approach, especially when he practices what he preaches. His fund, the Legg Mason Focus Trust, has 15 stocks, an annual turnover rate of 9 percent, and percentage annual returns in the mid-30s. For thoughtful investors and devotees of Warren Buffett, who are looking for more than the next hot stock tip, The Warren Buffett Portfolio is well-written guide. Recommended. --Harry C. Edwards --This text refers to an out of print or unavailable edition of this title.
In a straightforward follow-up to his bestseller, The Warren Buffett Way, Hagstrom shows how to put Buffett's ideas into practice. Buffett, universally described as one of the world's greatest investors, has made a fortune with a number of extremely large bets on a relatively small number of companies. By doing so, Hagstrom, who runs a mutual fund for the Legg Mason investment house, correctly points out that Buffett flies in the face of orthodox notions of portfolio diversity. Buffett's approach, which Hagstrom calls "focus investing," limits his investments to an extremely small number of stocksA10 or 15Athat he thinks have the greatest long-term potential. In The Warren Buffett Way, Hagstrom identified how Buffett chooses those stocks. And here, in his straightforward followup, he shows the benefits of this approach: if you pick right, returns will be far greater than the market as a whole. The problem, of course, is that you have to pick winners. That, as Hagstrom notes, still takes hard work and discipline.
Copyright 1999 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.
The author seems to use Mr. Buffett'S reputation to bring forward his own ideas. The author is a very good and respected investor. He should write based on his own experience. Read morePublished 3 months ago by Pierre-Paul Rolland
All the books of Robert Hagstrom very good for your money and for you too.Published 16 months ago by Brezina Vladimir
I'm not sure what this is about after reading it. Actually I'm even more surprised noone has reviewed this (or read this?) or maybe I shouldn't be? Read morePublished on Nov. 16 2002 by dasn0wman
I have always been fascinated by Warren Buffett ever since I heard about this character in Omaha who didn't even have a stock ticker his office but had remarkable results in Adam... Read morePublished on March 17 2001 by E. Martin
It says "It's no secret that most mutual funds fail to beat the performance of the S&P 500. Read morePublished on July 21 2000
I liked this book and I'd certainly recommend it. However, Mary Buffett's "Buffettology" is a much better book. Read morePublished on Oct. 1 1999
I haven't read it yet, but purchased it after reading Eugene Baisch's letter to Baron's. He stated that "It's absolutely terrific". Read morePublished on July 24 1999
There are many roads to wisdom and as one who wants to invest (not trade) intelligently I found this book to be invaluable. Read morePublished on June 5 1999
I read Hagstrom's previous book, The Warren Buffett Way, years ago. This book taught me to apply Buffett's strategies in a whole portfolio -- in a way that is easy to learn and... Read morePublished on June 4 1999