The Warren Buffett Philosophy of Investment: How a Combination of Value Investing and Smart Acquisitions Drives Extraordinary Success
See the world’s #1 investor like never before―and learn how you can replicate his success
Many books have been written about Warren Buffett’s value-investing strategy, and volumes more have been written about becoming a top-tier value investor. Even so, no one can touch the success Warren Buffett has achieved. Why? In this revealing examination of Buffett’s success, practitioner, professor, and bestselling author Еlena Chirkova proposes the key to replicating his achievements is found in his acquisition practices as well as his investment strategy.
In The Warren Buffett Philosophy of Investment, she looks at the man in full to piece together the framework leading to his unmatched wealth-generating prowess. The cornerstone of her study goes beyond investment theory to show Buffett’s core wealth drivers are his philosophies behind Berkshire Hathaway. From his decision to create a joint stock company (instead of a mutual fund) to his hands-off policy with acquired companies to making himself a brand-name of mergers and acquisitions―she illustrates an intimate portrayal of Buffett operating behind the scenes by piecing together his career with scholarly diligence and scrutiny. Even well-read Buffett followers gain fresh insight into the man by discovering:
- Where his divergence from the principals of Ben Graham and Philip Fisher make him a superior investor
- Why his unorthodox perspective on the financial markets keep him ahead of the curve
- How his vision of risk, interpretation of volatility, and scepticism about investing in technology companies are interconnected
- What he sees as the critical problems of corporate finance
Additionally, readers are treated to extraordinary coverage of how Buffett strategically set up Berkshire Hathaway to suit his personal long-term investment strategy and provide almost cost-free leverage. See how Buffett’s singular acquisition tactics and portfolio investments earned Berkshire Hathaway the distinction as “the right home for the right people,” which gives him access to deals unobtainable by other companies and investors.
You’re only investing with half a strategy until you take your value investing to the next level with The Warren Buffett Philosophy of Investment.
Th e theory of optimal portfolio plays the most important role in the investment management. Th is theory aims at solving the problem of choosing an optimal asset portfolio ratio. In classical investment models it is assumed that the assets included in the portfolio are infi nitely divisible, hence a portfolio is regarded to be well formed if the optimal assets proportions there were found/. Such an approach is acceptable when the share price is low in relation to the volume of investment resources. Otherwise, the solution may be not only nonoptimal, but unacceptable. Th ese circumstances made investors consider not only classical continued portfolio investment models, but also integer analogues. Some of these models are considered in the proposed article.
The main aim of the article is to feature historical and modern features of mergers and acquisitions (M&As) deals. For this will be considered: transaction history, the reasons for their appearance, fallacies and self-deceptions during the M&As. Moreover, M&As transactions will be characterized that take place between Russian insurance companies. For example, one of the deals will be characterized on the issue of comparative estimate of the economic productivity (the fit) of its execution.
This paper is devoted to the analysis of mergers and acquisitions in Russia. Using the statistical and econometric methods the estimation of macroeconomic and industry factors influence on the intensity of mergers and acquisitions processes by sectors of Russian industry is carried out. As a result the relationship between the activity of the redistribution process of the corporate control rights and some industry characteristics such as an involvement into the foreign trade, the relative industry size, the concentration of production is revealed.
English Title: Warren Buffett’s Philosophy of Investment, Or What the Financial Guru's Biographers Do Not Discuss
An intellectual biography Warren Buffett with a focus on those factors of his success which are beyond the theory of investment.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.