More Praise for The Warren Buffett Way, First Edition

partnership history, 2–4
personal characteristics, 4, 7
portfolio management, 157–175
on problem companies, 68
psychology of investing, 175,
177–188, 189–198
and risk, 165
salary, 103
stock options, 103–104
and textile business, 29–30
underwriting philosophy, 38–39
vehicles for managing investment, 31
and Washington Post Company,
64 – 65, 67 (
see also
Washington
Post Company)

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I n d e x
2 4 1
and Wells Fargo, 67
white knight, 152
and Williams, 27, 28 (
see also
Williams, John Burr)
Buffett Partnership (1950s, 1960s),
2–4, 29
Business(es)/company(ies):
basic characteristics to look for,
62–79
f inding outstanding, 61– 62
management tenets, 59, 62
research into, 63
Business tenets, 59, 61–79
Buying decision, 173
Candor, 94 –96
Capital asset pricing model, 164
Capital Ideas
( Bernstein), 21–22
Cases in Point:
Benjamin Moore, 65– 66
Fruit of the Loom, 86–89, 137–138
Justin Industries, 72–76
Larson-Juhl, 132–134
Cash f low, 113–114
Certainties, buying, 7
Chace, Ken, 29
Champion International, 152
Chippewa, 73
Christopher, Doris, 48–49, 79, 94, 
116
Circle of competence, 8, 19, 63,
123–124
Clayton, James, 45–46, 101
Clayton, Kevin, 46
Clayton Homes, 45–47, 70, 99–101
acquiring, 138
compensation of salespeople, 101
Coca-Cola, 7, 8, 24, 51–52, 64,
68– 69, 77–78
buyback, 90
dividends, 96
and institutional imperative, 99
market value, 118
owner earnings, 114
prof it margins, 116, 124
return on equity, 111
strategy for the 1980s, 111–112
value of, 124 –127, 134 –135
Columbia Business School, 2
Commodity business, 71, 77
Consistency, 67–70
Convertible preferred stocks, 
151–155
Cooper, Sheila O’Connell, 49
Corporate governance, 105–106
CORT Business Services, 45
Costs/expenses, 17
Covariance, 164
Cowles Media, 54
Cuniff, Rick, 169
Davidson, Lorimer, 32
Davis, Edwin, 22
Dempster Mill Manufacturing, 25
Depth of management, 18
Director negligence, 105–106
Discounted net cash-f low analysis,
20 –21
Diversif ication, 165–166
Dividends, 20 –21, 89–90
Washington Post Company, 92–93
Dodd, David, 12, 166–167
Dorr, James J., 138
Dynergy, 153
Economic goodwill, 71, 78
Education of Buffett, 11–28
Eff icient market theory ( EMT), 164
Equity f inancing, 17–18
Fama, Eugene, 20, 164
Farley, William, 86
Fear and greed, effects of, 26
Featherlite Building Products
Corporation, 75
Financial tenets, 59, 109–119

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2 4 2
I N D E X
Fisher, Philip, 11, 16–19, 26–27, 28,
114
bio data, 16
compared to Graham, 26
focus investing, 161
and patience, 162–163
price changes, 163
Fixed-income securities, 141–155
Focus investing, 158–175
challenge of, 174 –175
f inding companies, 160 –161
high-probability events, 161–162
psychology of, 187–188
Focus Trust, 203
Franchises, 70 –71, 77
Fruit of the Loom, 44, 86–89, 
137–138
bankruptcy, 137
history of, 86
Garan, 44
Gates, Bill, 1, 123
GEICO Corporation, 31–33
Generally Accepted Accounting
Principles (GAAP), 94 –95
General Reinsurance Corporation
(General Re), 31, 34 –36, 95
Gillette, King C., 51
Gillette Company, 51–54, 69–70, 118
convertible preferred stocks, 152
value of, 127–128, 135–136
Globalization of business, 53–54
Goizueta, Roberto, 77–78, 96, 99,
111–112, 124 –125, 134 –135
Golub, Harvey, 91–92
Government Employees Insurance
Company (GEICO), 31–33,
171–172
Graham, Benjamin, 12–16, 136
and Buffett, 2, 3, 11, 25, 166–167,
198
Columbia class, 2, 12
common stocks, adapting, 14
death of, 24
def inition of investment, 13
and GEICO, 31–32