Monday to Friday, 9 a.m. to 5 p.m.

What I Learned From Warren Buffett

Buffett: The Making of an American Capitalist

Lowenstein, Roger

It requires adding up all of its assets, revenue streams, and future prospects. Seeing his success, he had applied to the Harvard Business School. Maybe, it was best for him to be rejected by Harvard.

He never worried if the market price of a stock he had bought experienced a big drop because it was obvious to him that the fundamentals would see it rise again. Before he was 35, Buffett was managing $22 million and had a personal net worth of $4 million . Begun with his own capital and that of local Omahans, by the end of the third year the fund had doubled in value; after five years, when the Dow stock market index had risen 74%, Buffet’s fund had increased by a remarkable 251%.

Book Information

All in all, Buffett had a very humble and tough childhood, and his hard work has led him to be successful, along with his professor and mentor Graham who tuaght Buffett valuable lessons on how to be smart when investing. He really changed my perception on money as something that can grow, not something you work for and spend. An epic work on Buffett and the difinitive book on Buffett’s story. However, his patience – to sit on huge pile of money till he gets suitable opportunity to deploy it – is an astonishing one.

“I can’t get him to come out and see how the crops are going”, Howie said plaintively. He would laugh off Howies’s invitations, saying, “Send me a rent check, and make sure it’s big enough”.

This terrible experience planted an idea in Warren’s young mind and he vowed that he would become rich as soon as he could so that he and the people he loved would never have to feel the pain of poverty ever Buffett: The Making of an American Capitalist again. When his wife Susan Buffett passed away in 2006, he decided to donate most of his wealth to the charities. It was divided among Buffett family foundations and Bill – Melinda Gates Foundation.

A great little read if you want to understand how Warren Buffet was ‘made’ and the roots of his success. A much more balanced portrait that those which just concentrate on his financial performance. This book also covers very well personal traits of Warren Buffett, his attitudes toward parents, sister, friends, parents, children and wife. For example, Warren bought a farm and rented it to his son Howie on standard commercial terms. The farm was a joyful refuge to Howie, but he couldn’t get Warren to share the experience with him.

Buffett: The Making of an American Capitalist

By 1957, Buffett was already managing about $300,000 for his friends and family. He had no track record but even when he got a call from Edwin Davis, a reputed neurologist in Omaha, he stuck to his own terms. He made his message clear that he would be open to conduct business only one day in the year and that they wouldn’t even know where he would invest their money.

I also recommend “Snowball.” I think this was a little bit of a less negative twist on Buffett, I would say. I think the “Snowball” was a little Buffett: The Making of an American Capitalist bit more negative towards his personality, so depending on what your personality is, you might want to steer towards one or the other.

  • Although Buffett’s father warned him against entering the stock market, he started working in his father’s brokerage.
  • Those who have invested with him tend to keep their shares for decades and consider themselves members of a ‘privileged tribe’, Lowenstein notes.
  • Later, he went to work for Graham’s investment fund in New York, but knew he wanted to work for himself, with his own fund, and back to Omaha.
  • Buffett is interesting because the way he lives and works is more akin to the style of an artist or philosopher; Berkshire is his ‘canvas’ and his relationship with his partners he sees as a sacred trust.

By clicking Sign Up, I acknowledge that I have read and agree to Penguin Random House’s Privacy Policy and Terms of Use. Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces.

Five Things I Learned From Reading “Buffett: The Making Of An American Capitalist” By Roger Lowenstein

He rarely interfered in the company’s problems but he stepped in and asked them to cut back. However, it seemed to be too late as the Justice Department and SEC had already begun an investigation.

He doesn’t believe in businesses that rely for their success on every employee being excellent. Nor does he believe that great people help all that much when the fundamentals of a business are bad. He says that when good management is brought Buffett: The Making of an American Capitalist into a fundamentally bad business, it’s the reputation of the business that remains intact. My conclusion from reading this book is that while Buffett’s techniques work for him , Phil’s approach can work for you, me, or anyone.

And then he gets the barbershop to have some skin in the game. And then he can tell one of the stories or one of the highlights that he has from the book. Like, you don’t necessarily need to read both of them, so like, it’s about… And there’s only so much you can Buffett: The Making of an American Capitalist say about Warren Buffet, his ventures and where he is today. But yeah, I might be slightly biased as well, because I just read this one. This chapter is a continuation of the previous chapter where the problems encountered in Salomon’s firm are briefly described.

Another 3 billion is for customer Y, and then 4 billion is for ourselves, for Salomon Brothers. And in all actuality, what he was doing is he was conducting fraud and that all $10 billion worth of the treasuries were just for Salomon Brothers.

Goodreads helps you keep track of books you want to read. This is the fourth book by this author in my business library.

Greenwald said he is not really a Graham and Dodder, but that he is more into speculating not investing. Buffett: The Making of an American Capitalist When I grew up, people with money, were said to be right wingers and conservatives—‘filthy capitalists!

Very few people will accumulate this much wealth from very little. Buffett recently mentioned lost investment opportunities of which we will never know, so it is good to know that even ‘the Oracle’ isn’t perfect. I have read a few books on Warren Buffett, including Snowball.

By that term, I mean I believe that the Bible is true in every word. I do agree that there are errors in my understanding of the Word. But, God does not make mistakes and where there are translation errors God had a reason for that. I believe that life begins at the split second of conception and that no one, other than God, has the right to end that life, no matter what the reason.


And I have also been in the forum for so long now that I know which users, I should pay special attention to, so if someone like Chris saying, “Hey, I’m looking at this stock, you know? ” That like he’s the best stock screener you can get, a lot lower if he’s buying something, so definitely I agree with you, Preston. I don’t know about Preston, but for the first question about generating ideas, so I will also agree with Preston. I usually use Google stock screener, it’s easy to use, and it’s free.

Post a comment