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If you GOOGLE Buffett's investment advice you will get scores of links, ironically none of those results actually link to Buffett’s shareholder's letters - the source of all the investment advice, which to me is as pure as the water of Gangotri (Origin of River Ganges). Thus I thought of creating this post that lists down some of Buffett's most important advice to common investors. I have also linked the relevant year's shareholder letter that explains that topic in detail. Every once in a while I browse through these letters and get enlightened by his thoughts.
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1. How stock markets work and how we can benefit from it – 1987 2. What kind of companies does Buffett prefer to invest? – 1987 3. What an investor should know and his basic goal towards investing. – 1996 4. How to value an asset Using the philosophy “Bird in the hand is worth two in the bush”. 2000 5. What’s difference between Investment and speculation? 2000 6. Growth and value investing are same. 2000 7. How Buffett and Munger view themselves while analyzing stocks? – 1987 8. SATIRICAL – Why investment professionals behave as they do? – 1985 9. Even a great management cannot save a business with poor economics. 1985 10. How Buffett measures Long term results? - 1979 11. The value of a brand – case study of See’s candies – 1983 12. Economics of mergers and acquisitions. 1981 13. Economic Goodwill vs Accounting Goodwill – 1983 14. How an Insurance company can have lots of cash and still be broke – 1984 15. Buffett’s views on dividend policy – 1984 16. Cash flow is important , but don’t forget capital expenditures. - 1986 17. Difference between Book value and intrinsic value – 1987 18. Case studies of arbitrage opportunities : Rockwood / Arcata- 1988 19. Smart companies become aggressive when others are weak. How Berkshire profited in 1989 after Hurricane Hugo and California earthquake. 1989 20. Bond investing – 1989 21. What’s the trait of a good insurance company – 1990 22. Lesson on Banking business. 1990 23. Difference between franchise and a Business – 1991 24. Lesson on derivatives – 2002 2007 25. CASE STUDY - A business should stay simple – Mid American’s zinc fiasco – 2004 26. How super catastrophic premiums are recorded – 1992 27. How Float can be an asset for an Insurance company – 1997 28. Don’t just rely on accounting numbers- Look at the economic value Example of Scot Fetzer – 1986
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LOGIC BEHIND BUFFETT'S DIET Following is what Buffett said in an interview with CNBC. "I get about 700, 750 calories a day from Coca-Cola," he says, often plowing through about five cans a day. "If you look at me, you're looking at about one-quarter Coca-Cola," Buffett joked. Yet Coke is not his only unique food selection: The 84-year-old also also feasts on Utz Potato Stix and, famously, ice cream. He defends adhering to what he calls "a happy diet," explaining there's a method behind it that involves actuary tables. "As I told people, I looked up mortality by age, and found six-year-olds died less than any other age group," Buffett said. "I'll eat what they eat."
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