Monday, May 12, 2008
This is a very easy to read book, with 24 simple tips. It is a qualitative without any numbers but makes a good read. It explaines the buffet philosophy in a very staraight forward manner. For example, how you are not buying stock but a share in the business and thus you must focus on the economics of the business. The concept that the price at which you buy determines your returns and so on. All in all a good read
In contrast to How buffet does it, this book was a big let down. It has two parts, one about the philosophy and the qualitaitve part and the other advanced buffetology which has some number work done. It is a 319 page book but doesn't give you any thing other than the same thing Pardoe says in 150 pages. The so called quantative part and advanced buffetology is at best something lifted from a basic / entry level finance text book. NPV calculation, calculaing expected values and P/E multiples etc. It was a major let down.