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Creating a Portfolio like Warren Buffett: A High Return Investment Strategy
The practical guide to investing the Warren Buffett way
Creating a Portfolio like Warren A High Return Investment Strategy highlights actual trades author Jeeva Ramaswamy has successfully executed using principles established by investment guru Warren Buffet. Clearly explaining how Buffett's principles can be used to make specific investments the book, unlike other investment guides, also clearly explains how to apply Buffett's exit strategies as they pertain to holding or selling positions.
Giving listeners a complete overview of Buffett's methodologies and how to apply them, the book is a step-by-step stock research checklist and comprehensive guide to investing and managing a successful stock portfolio. It includes detailed instructions
Determine where to search for stock prospects Thoroughly research stocks using a stock research checklist Confidently make buy and sell decisions Expertly manage your portfolio Packed with specific stock examples, real-life calculations, and expert tips, Creating a Portfolio like Warren Buffett is your guide to harnessing the market savvy of an investing legend.
PLEASE When you purchase this title, the accompanying PDF will be available in your Audible Library along with the audio.
Creating a Portfolio like Warren A High Return Investment Strategy highlights actual trades author Jeeva Ramaswamy has successfully executed using principles established by investment guru Warren Buffet. Clearly explaining how Buffett's principles can be used to make specific investments the book, unlike other investment guides, also clearly explains how to apply Buffett's exit strategies as they pertain to holding or selling positions.
Giving listeners a complete overview of Buffett's methodologies and how to apply them, the book is a step-by-step stock research checklist and comprehensive guide to investing and managing a successful stock portfolio. It includes detailed instructions
Determine where to search for stock prospects Thoroughly research stocks using a stock research checklist Confidently make buy and sell decisions Expertly manage your portfolio Packed with specific stock examples, real-life calculations, and expert tips, Creating a Portfolio like Warren Buffett is your guide to harnessing the market savvy of an investing legend.
PLEASE When you purchase this title, the accompanying PDF will be available in your Audible Library along with the audio.
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First published March 13, 2012
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Displaying 1 - 11 of 11 reviews
July 29, 2017
I admire buffett and his compounded theory of time and investment. This book is well researched study of warren moves over the period of time with true investment numbers .
But there are few error that caught my attention, instead of talk about errors, I'll rather put positive points first. Overall it is good read, but if you put attention to detail (sorry I do) then it might disappoint you to some capacity.
These parts of the book I liked it very much,
* He started with the great self confidence chapter "Replicating Warren Buffett Success". The author calculated even with half the success of Warren Buffett investment track records, investors can be able to retire as a Multi Millionaires and shown many examples of people did just like that. Book page numbers 3 to 7.
* Stock research checklist items explained with lot of examples. Best of part of the book chapters are from Chapter 5 to 23, page numbers from 37 to 191. The checklist I like the best are, How to identify the company management integrity from the 10K and 10 Q reports? How to evaluate the management? How to identify the turn around opportunities and intrinsic value calculation.
* Where to search for stock prospects, chapter 25 is another important chapter. Most of the Warren Buffett book authors explain about the Warren Buffett's previous investments and leave it there. This author explained where to search for stock prospects, that is excellent.
* Another chapter, which I liked it, is, Chapter 28, Mr. Market and Investor Psychology. He explained it, how public investors behave in stock market. How Fear and greed affects the investment decisions and explained it with recent events like Europe debt crisis.
However there are errors, that I cought here
A couple of calculation examples:
The calculation of compound annual growth rate is wrong throughout the book. A formula for compound growth rate appears twice (once incorrectly). But even the correct version is not used properly, since the number of years of growth is consistently miscounted. For example, on p124 you find three years of data (2007 - $23,375, 2008 - $24,213, 2009 - $25,398), which yield two years of growth (2007-2008 and 2008-2009). But the calculation uses three years of growth and gets an annual growth rate of 2.80% rather than the correct 4.24%. The vast majority of compound growth calculations in this book are wrong. Using lots of examples is great, but not if they get butchered in the analysis.
In a table on p26 a 15% capital gains tax on a $20,000 gain is calculated to be $18,000. That's a 90% tax rate. The initial cost of the shares was not deducted from the proceeds of sale before applying the tax. The error is repeated in each line of the table and again on the next page. The table shows that $100,000 growing at 20% per year and traded annually will only be worth $121,899 after ten years. That number is off by about $360,000. The results are then discussed as if they are something other than nonsense. How can such a gross error go unnoticed?
On railways:
"I was amazed to see that just one gallon of gas can be used for 35 miles of transportation." (p40)
"Again, you might not believe it, but only one gallon of oil is used for 400 miles of transportation." (p88)
The same thought from a clear thinker, whose facts I trust: "The Burlington Northern last year moved ... a ton of freight 470 miles on a gallon of diesel." (Warren Buffett)
Present Value of Future Earnings: On page 196-7 in a sample calculation, leading to an estimate of intrinsic value, the author intends to use a discount rate of 15%, but
instead of using a factor of 1.15, he uses 1.5 (which is a 50% discount rate). Predictably, with a 50% discount rate the present value of future earnings shrinks to almost
nothing very quickly. Equally predictably this author and his editors fail to recognize that something has gone grossly wrong. His calculations aren't even close to being
right and the calculated intrinsic value that follows is ridiculously low. He determines that "the maximum offer price should be $101,355.13 and no more" (p197).
This is for the purchase of a store that will earn more than $110,000 in the next 2 years alone
But there are few error that caught my attention, instead of talk about errors, I'll rather put positive points first. Overall it is good read, but if you put attention to detail (sorry I do) then it might disappoint you to some capacity.
These parts of the book I liked it very much,
* He started with the great self confidence chapter "Replicating Warren Buffett Success". The author calculated even with half the success of Warren Buffett investment track records, investors can be able to retire as a Multi Millionaires and shown many examples of people did just like that. Book page numbers 3 to 7.
* Stock research checklist items explained with lot of examples. Best of part of the book chapters are from Chapter 5 to 23, page numbers from 37 to 191. The checklist I like the best are, How to identify the company management integrity from the 10K and 10 Q reports? How to evaluate the management? How to identify the turn around opportunities and intrinsic value calculation.
* Where to search for stock prospects, chapter 25 is another important chapter. Most of the Warren Buffett book authors explain about the Warren Buffett's previous investments and leave it there. This author explained where to search for stock prospects, that is excellent.
* Another chapter, which I liked it, is, Chapter 28, Mr. Market and Investor Psychology. He explained it, how public investors behave in stock market. How Fear and greed affects the investment decisions and explained it with recent events like Europe debt crisis.
However there are errors, that I cought here
A couple of calculation examples:
The calculation of compound annual growth rate is wrong throughout the book. A formula for compound growth rate appears twice (once incorrectly). But even the correct version is not used properly, since the number of years of growth is consistently miscounted. For example, on p124 you find three years of data (2007 - $23,375, 2008 - $24,213, 2009 - $25,398), which yield two years of growth (2007-2008 and 2008-2009). But the calculation uses three years of growth and gets an annual growth rate of 2.80% rather than the correct 4.24%. The vast majority of compound growth calculations in this book are wrong. Using lots of examples is great, but not if they get butchered in the analysis.
In a table on p26 a 15% capital gains tax on a $20,000 gain is calculated to be $18,000. That's a 90% tax rate. The initial cost of the shares was not deducted from the proceeds of sale before applying the tax. The error is repeated in each line of the table and again on the next page. The table shows that $100,000 growing at 20% per year and traded annually will only be worth $121,899 after ten years. That number is off by about $360,000. The results are then discussed as if they are something other than nonsense. How can such a gross error go unnoticed?
On railways:
"I was amazed to see that just one gallon of gas can be used for 35 miles of transportation." (p40)
"Again, you might not believe it, but only one gallon of oil is used for 400 miles of transportation." (p88)
The same thought from a clear thinker, whose facts I trust: "The Burlington Northern last year moved ... a ton of freight 470 miles on a gallon of diesel." (Warren Buffett)
Present Value of Future Earnings: On page 196-7 in a sample calculation, leading to an estimate of intrinsic value, the author intends to use a discount rate of 15%, but
instead of using a factor of 1.15, he uses 1.5 (which is a 50% discount rate). Predictably, with a 50% discount rate the present value of future earnings shrinks to almost
nothing very quickly. Equally predictably this author and his editors fail to recognize that something has gone grossly wrong. His calculations aren't even close to being
right and the calculated intrinsic value that follows is ridiculously low. He determines that "the maximum offer price should be $101,355.13 and no more" (p197).
This is for the purchase of a store that will earn more than $110,000 in the next 2 years alone
October 5, 2019
Similar investing philosophy as Phil Town and I was hoping that this book would give me some supplemental information to better understand some concepts.
This book is really a compilation of a lot. Some of the more obvious points are repeated regularly. And then there is not as much time spent on calculating intrinsic value as I would like.
The copy I had is a library book and someone pointed out a math error. The explanation was so over simplified in the book, that I didn’t even try to understand what the commentator was trying to say.
This book is really a compilation of a lot. Some of the more obvious points are repeated regularly. And then there is not as much time spent on calculating intrinsic value as I would like.
The copy I had is a library book and someone pointed out a math error. The explanation was so over simplified in the book, that I didn’t even try to understand what the commentator was trying to say.
November 1, 2020
Investment checklist are great.
January 2, 2022
Despite it being more than a week old, the book carries wisdom of the value investor through examples & anecdotes.
November 8, 2018
I find this book very informational since you learn how to invest from scratch. You learn everything from A to Z about successful investing. The problem I found with this book is that it is very dry and hence is a very slow read. Therefore I recommend this book more as a textbook about investing rather than a business read that is joyful to read during free time.
March 16, 2013
First, I'll start with the good. I like the most from this book is its simplicity on the explanation of both the concepts and application of value investing. Comparatively, the Intelligent Investor book by Benjamin Graham is more of a compilation of research papers that's highly "densed" with value investing concepts and data. This book is more of a layman's approach to value investing, I'm pretty sure even a beginner investor can pick it up easily. The approaches outlined in the book is simple to follow and backed by some of the author's experience as a fund manager, both good and bad decisions made by him. Chapters are pretty well defined and flow of reading it is smooth.
Now, the not-so-good part, there's been quite a lot of calculation errors, especially in the chapter for Intrinsic Value. I'm surprised that it's not caught in the process of publication, the editor should have done it. The errors are really obvious and the due to that, the outcome of the remaining of that particular chapter deviates a lot. There's been numerous accounts of typo error as well.
My personal note to whoever is reading this review, it's a good book to start and I would recommend your next book to be the Intelligent Investor.
Now, the not-so-good part, there's been quite a lot of calculation errors, especially in the chapter for Intrinsic Value. I'm surprised that it's not caught in the process of publication, the editor should have done it. The errors are really obvious and the due to that, the outcome of the remaining of that particular chapter deviates a lot. There's been numerous accounts of typo error as well.
My personal note to whoever is reading this review, it's a good book to start and I would recommend your next book to be the Intelligent Investor.
April 5, 2012
They say when the student is ready, the master appears.
Let me tell you the kind of book I was looking for because Ramaswamy's book meets my exact needs: I'm about to become an active investor and my knowledge is higher than many newbies because of my book review work for business, self-help and wealth creation magazines over the past five years.
Thus I knew I wanted to model Warren Buffett's investment philosophy, but I needed a book that bridged the gap between covering his basic approach and giving me information that's too far beyond my level.
This book meets that need.
From it, I'll be able to create a spreadsheet I can use to monitor businesses to invest in.
It's given me what I needed to have the confidence to take action.
Let me tell you the kind of book I was looking for because Ramaswamy's book meets my exact needs: I'm about to become an active investor and my knowledge is higher than many newbies because of my book review work for business, self-help and wealth creation magazines over the past five years.
Thus I knew I wanted to model Warren Buffett's investment philosophy, but I needed a book that bridged the gap between covering his basic approach and giving me information that's too far beyond my level.
This book meets that need.
From it, I'll be able to create a spreadsheet I can use to monitor businesses to invest in.
It's given me what I needed to have the confidence to take action.
September 3, 2012
Great book! Really takes the emotion out of Investing. After reading the book I want to run the numbers in his formula for my current stocks owned and see what kind of value I have and if it is time to sell or keep buying. Not sure. I'm a little worried. I do not have an Accounting background, so I think I will have to reread this book to better understand a little better.
January 24, 2016
Mr. Ramaswamy wrote accurately about Warren Buffet's investment strategies. He also explained well how the average investor could employ these same strategies in their own investments. However, the style of writing was dry and uninteresting. I have read many books on Warren Buffet, many of which are highly engaging. This one did not rise to that level.
December 15, 2012
Superficial. Self promoting.
February 8, 2015
So all we can be succesfull like Mr.Buffet after reading this book. Eureka !!!
Displaying 1 - 11 of 11 reviews