The Tao of Warren Buffett:

A Book Review by Steve Amoia

This physically small book delivers a very large message from one of our most admired and analyzed business leaders: Warren Buffett. He earned his billions by investing in conservative companies with strong balance sheets, along with passionate managers and subordinates who focused on the long-term. His company, Berkshire Hathaway, is a sterling example that has rewarded its shareholders for decades.

Collection of 125 Quotes

This book is a collection from 125 of Mr. Buffett’s quotes on a variety of topics. The authors, Mary Buffett and David Clark, were a former daughter-in-law and family friend, respectively. They are best-selling authors of what they term “Buffettology,” which is the study of the tremendous investment and business acumen of this intriguing man.

Ms. Buffett and Mr. Clark have organized this book into fourteen chapters. For example: Business, Education, The Workplace, and Why Not To Diversify. You will learn from the wisdom and insights of Mr. Buffett, along with the personal examples from his life that the authors provide after each quote.

Here are a few appetizers from the Oracle of Omaha:

“If Calculus or Algebra were required to be a great investor, I’d have to go back to delivering newspapers.”

“Never be afraid to ask too much when selling or offer too little when buying.”

“You can’t make a good deal with a bad person.”

“You should invest like a Catholic marries: for life.”

“You should invest in a business that even a fool can run, because some day, a fool will.”

“In looking for someone to hire, you look for three things: integrity, intelligence, and energy. But the most important is integrity, because if they don’t have that the other qualities, intelligence and energy, are going to kill you.”

“It’s hard to teach a young dog new tricks.”

“Managing your career is like investing. The degree of difficulty does not count. So you can save yourself money and pain by getting on the right train.”

“Never ask a barber if you need a haircut.”

“Wall Street makes its money on activity. You make money on inactivity.”

“Risk comes from not knowing what you are doing.”

“I’d be a bum in the street with a tin cup if the markets were efficient.”

“What we learn from history is that people don’t learn from history.”

“We do not have, nor have had, and never will have an opinion about where the stock market, interest rates, or business activity will be a year from now.”

Here was my personal favorite:

“It takes 20 years to build a reputation, and 5 minutes to lose it. If you think about that, you will do things differently.”

Legendary Shareholder Letters

To learn more about Mr. Buffet’s investment and economic theories, you can visit the Berkshire Hathaway website that displays his legendary annual shareholder letters.