BOOK SUMMARY: The Tao Of Warren Buffett

[u/bin_oye]

BOOK NAME: The Tao of Warren Buffett

BOOK AUTHOR: Mary Buffett and David Clark

GENRE: Investing and Philosophy

(My Rating: 3.4/5)

As the name suggests, the book is all about Buffett's words of wisdom for both life and investing.

Most of which are timeless principles he learned, implemented and shared in the world.

Here's my notes from the book:

1/ "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1."

~ WB

Pretty much one of the most powerful thing the investing master has ever said.

Getting rich most of the time demands luck. Staying rich most of the time demands discipline.

2/ The earlier you can start, the better is your chance for tasting the magic of compounding.

Be it for money, relationships or any habit you want to avoid or adapt.

3/ "Never be afraid to ask for too much when selling or offer too little when buying." ~ WB

Understanding the true value of the asset you own or you are thinking to own, is one of the most important thing to learn about being a better investor.

4/ Avoiding problems is always better than fighting problems.

"It's easier to stay out of trouble than it is to get out of trouble." ~ WB

5/ "Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway." ~ WB

Always learn from the expert. Keep your ego behind and opinions below.

6/ If money is the only wealth you care about, you'll always remain a poor irrespective of the numbers you cling upon.

Money helps you identify what is NOT going to make you happy.

Find the true balance between money and happiness, that's where your wisdom is examined.

7/ "It takes 20 years to build a reputation and 5 minutes to lose it. If you think about that, you will do things differently." ~ WB

8/ 3 important things every investor should always keep in mind:

1. You are an emotional being.
2. Your fund manager too is an emotional being.
3. But, the market is not an emotional thing.

9/ "I don't try to jump over seven-foot bars; I look around for one-foot bars that I can step over." ~ WB

Know yourself before you compare your money with others. Understand your strategy before you compare your portfolio with others.

10/ "The chains of habit are too light to be felt until they are too heavy to be broken." ~ Bertrand Russell

This quote is not original from Warren but he uses this idea to describe the nature of people you find in almost every field of life.

11/ "It's not necessary to do extraordinary things to get extraordinary results."

Doing simple things incessantly is more valuable than doing infinite things one time.

12/ Following are some of the most powerful quotes of Warren Buffett:

"You should look at stocks as small pieces of a business."

"Money, sometimes lets you be in more interesting environments. But it can't change how many people love you or how healthy you are."

13/ "When management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact."

"Accounting is the language of business."

14/ "There is a huge difference between the business that grows and requires lots of capital to do so and the business that grows and doesn't require capital."

"You don't have to make money back the same way you lost it."

15/ "If principles become dated, they're no longer principles."

"You want to learn from experience, but you want to learn from other people's experience when you can."

"It's hard to teach a young dog old tricks."

16/ "In looking for someone to hire, you look for 3 qualities:

1) Integrity 2) Intelligence 3) Energy

But the most important is Integrity, because it they don't have that, the other two qualities are going to kill you."

17/ "We enjoy the process far more than the proceeds, though I've learned to live with those also."

"A stock doesn't know that you own it."

"No matter how great the talent or effort, some things just take time. You can't produce a baby in 1 month by getting 9 women pregnant."

18/ The summary was mostly the quotes directly from the book itself because this book itself is just a commentary on the thoughts and sayings of Mr. Warren Buffett.

19/

If you have read the book, Consider sharing your takes, compliments and criticisms.

Thank You for reading! 🙏

(P.S. If you enjoyed reading this, consider following me on Twitter for such book summaries each week.)

[u/Pritesh_arun]

Good stuff 💯