Product Description

If you read the original Buffettology, you know exactly half of what you need to know to effectively apply Warren Buffett's investment strategies.

Published in 1997, the bestselling Buffettology was written specifically for investors in the midst of a long bull market. Since then we've seen the internet bubble burst, the collapse of Enron, and investors scrambling to move their assets -- what remains of them -- back to the safety of traditional blue chip companies. As price peaks turned into troughs, worried investors wondered if there was any constant in today's volatile market. The answer is yes: Warren Buffett's value investing strategies make money.

The New Buffettology is the first guide to Warren Buffett's selective contrarian investment strategy for exploiting down stocks -- a strategy that has made him the nation's second-richest person. Designed to teach investors how to decipher and use financial information the way Buffett himself does, this book guides investors through opportunity-rich bear markets, walking them step-by-step through the equations and formulas Buffett uses to determine what to buy, what to sell -- and when. Authors Mary Buffett and David Clark explore Buffett's recent investments in detail, proving time and again that his strategy has earned enormous profits at a time no one expects them to -- and with almost zero risk to his capital.

In short, The New Buffettology is an essential companion to the original Buffettology, a road map to investment success in the worst of times.

Product Details

• Amazon Sales Rank: #12561 in Books
• Published on: 2002-09-03
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 288 pages

Features

• ISBN13: 9780684871745
• Condition: NEW
• Notes: Brand New from Publisher. No Remainder Mark.
• Click here to view our Condition Guide and Shipping Prices

Review
Business Week A probe inside the head of a financial genius. -- Review

Review
Jeremy Uttonchairman, Analyst Investment ManagementBuffettology was a revelation and by far the best book ever written about Warren Buffett's investment techniques. Simple, clear, and wonderfully effective in practice, it put us on a whole new track to the creation of long-term stock market wealth. My copy never leaves my desk. Now I have to make room for another because The New Buffettology is an equally groundbreaking, must-have book for all serious investors.

Business WeekA probe inside the head of a financial genius.

About the Author
Mary Buffett's own business acumen can be measured by her success as CEO of Superior Assembly, a 10-million-dollar-a-year commercial and motion picture editing company, with clients including Madonna and Coca-Cola. She lives in Beverly Hills, California.

Customer Reviews

Great book, now improved
This book is an improved version of their original. Particularly better was the coverage on what makes a durable competitive advantage. Also, the formulas and approach was organized better.

By reading the negative reviews of this book and its original you will find that this is a book written to be easily read. The authors did a great job of cleaning up the the "I knew Warren" tone of the first book.

The only drawback of this book is its over-simplifying the complications that can occur when you do a value approach - particularly when you look at real data. Still, this new book gives many examples to walk the reader through the methodology.

There is no statistical results shown that this method does indeed beat the market. You have to take it on faith that this methodology is used by Buffet, that it is what produced his great success, and that it can be duplicated in today's market.

Still, this is a great book, and I recommend it to investors, and to businessmen who need to understand more about "durable competitive advantage" and the kinds of businesses they should be creating. There is much more that needs to be said about competitive advantage. There are several books on this (starting with Michael Porter). This book gives a simplified version.

I think it is important to know that Buffet is not a Jack Welch type of manager. I would say he is closer to a Harold Geneen in that he is more of a "rentier" than a get-in-the-trenches manager/leader like Welch. This effects his choice of businesses. His approach is to own the only gravel pit in the county, and milk it for many years. This is certainly a good approach, but one that is difficult to pull off because a competitive advantage is difficult to hold on to.

It appears that significant monies were made by Buffet using investments not following this method (hedging, speculating on interest rates). These have provided buffers against when the value investing techniques didn't work.

Perhaps most important in the author's and Buffet's approach is the use of stock selection criteria that are outside of the radar of the average investor. And, that criteria is the screening on "durable comepetive advantage." Few investors screen stocks on this qualitative data. If this criteria indeed selects successful companies then you will do better than those without this information (assuming you buy right).

After reading this book, you can find out more on competitive advantage and stock prices by reading the books by A. David Silver (Quantum Companies). He is one of my favorite authors on durable competitive advantage. You should also read some of the recent books on how to research companies, like the one by Hoover.

There are many books on value investing. There is even a "Dummies" book on it. All of these are recommended because you will find that there can be a lot more to it than presented in this book. I would think that some kind of value investing test should be a requirement for all CEO's. Hopefully such a focus would keep certain CEO's and their partners-in-crime (CFO's) from focusing on hyping up the stock price through fraud, and get back to producing real business results. This book does not tell you how to detect puffed up earnings and fraudulent balance sheets. You'll need to read other value investing books for this.

Overall, I believe that if you follow the simple formulas in this book, you will find good value stocks. Buy this book, rather than the other previous ones.

John Dunbar
Sugar Land, TX

More Buffettology
Please see my review of the original Buffettology. The comments there largely apply here also. This second book is supposedly written with a down market in mind whereas the first was more bull market oriented. Actually, the second book is a very slightly more sophisticated version of the first where the authors have expanded and clarified several topics. For choosing strong consumer oriented companies with durable competitive advantages the authors include the return on total capital in the selection process. This is simply an additonal filter to what was in the first volume. There is also a more sophisticated study of when to sell a stock and a discussion of what makes a company profitable. This info and a reworded rehash of several chapters of the original are what make up the first 168 pages. There is some new information here that was not in the original. The writing in this first section is better than in the original Buffettology. Most of the remaining holes the reader can fill in with some additional research. Pages 169-189 are a discussion of "Where Warren Is Investing Now." There is definitely overlap with the first book here and a lot of it. There are a few additions however and some are worth noting. The section on arbitrage remains lightweight in this version although that may be good for the average investor. The final sections which deal with the mathematical equations are virtually reproduced from the original Buffettology and the workbook. This is sad for that is the portion of the book which could have used rewriting the most. My comments from Buffettology are still true. The math is not as terrible as some believe but the sections could have been written better. Frankly this is just laziness on the authors' part and nothing else. In the final analysis what is probably most useful to note about both books is that they could have used a good financial appendix and a good financial glossary. The value of these already excellent books would have doubled.

A Great Book For Making Money In Bear Markets
I've read all the "Buffett Books" and the Buffettology seies is the by far the best! Proof is pudding and these books have made me lots of money and, most important, have kept me from losing money. The New Buffettology explains how Warren Buffett avoided being slaughtered when the high-tech bubble imploded. It also explains in great detail how Buffett determines what companies to invest in during bear markets - a great thing to know! I bought this book (and I buy few new books because I sell used books for a living) because of the recommendation on the back by Tim Vic the celebrated author of "Wall Street on Sale" - in the world of value investing Tim Vic is the man - and I'm glad I didn't wait for it to come into the store! I highly recommend it for all serious investors who are interested in making money in this market! (If you read the original Buffettology -like I did -you are going to find that The New Buffettology explores new material that wasn't in the original - specifically how Warren determines when a market has topped or bottomed, plus the book contains the calculations that Buffett uses to determine when to sell a stock - something I've never seen before. Also there is an updated list of every stock Buffett has invested in - including his most recent investments - and a list of stocks that he will probably be looking to buy in this market. I also liked the in-depth study of Warren's arbitrage operations.) All in all it's a great book on the investment methods of Warren Buffett - the greatest investor of all time. I give it five stars and two thumbs up!!!