The Warren Buffett Way Workbook

Preface

Despite the financial markets going through several bear markets and other changes, one constant over the past few decades has been the presence of Warren Buffett in the financial markets. His staying power can be attributed to the unchanging methods he has used to select investments for Berkshire Hathaway. The third edition of The Warren Buffett Way dives into the evolution and education of Warren Buffett that led to the methodology he uses to choose investments. In addition, the selection criteria that have been fairly constant over time are spelled out in the form of specific tenets that Buffett follows when buying a business or the shares of a public company. Several examples of investments made by Buffett are reviewed, and the psychology of how he goes about approaching the financial markets is spelled out.

Warren Buffett’s methods have been mostly unchanged over time, but they are also unorthodox relative to many in the investment field. Despite the unarguable success of Buffett’s rational methods, the majority of individual and professional investors continue to approach the financial markets in an irrational manner. Following Warren Buffett’s methods allows one to be the rational player in the financial markets where the rest of the participants are acting irrationally.

This workbook is offered as a tool to ensure that readers fully comprehend the evolution of Warren Buffett as an investor, the methods he uses to select investments, and the psychology behind being ...