More Praise for The Warren Buffett Way, First Edition

Intelligent Investor, The,
58
margin of safety, 13, 25
methodology, 25
and Mr. Market, 181–183
and psychology of investing, 58,
178–179
rules of investing, 14 –15
Security Analysis
(Graham and
Dodd ), 12, 166
on speculation, 13
works of, 12
Graham, Donald E., 57
Graham, Katherine, 55, 92, 102,
112–113, 116, 128
Graham, Philip, 55
Graham-Newman Corporation, 2, 12
Green, Justin, 187
Growth, buying, 85, 89
Growth Trust, 203–205
Hawkins, O. Mason, 148
Hazen, Paul, 115
High-yield bonds, 145–149
Hochschild-Kohn, 25
Holland, John B., 87–88
Human nature, Buffett on, 97
Illinois National Bank and Trust
Company, 67
Indexing, 3, 158–159
Institutional imperative, 82, 96–102
Insurance, 29–39
distinguishing features, 38–39
Intelligent Investor, The,
58
Internet lottery insurance, 37
Investing guidelines:
business tenets, 61–79
f inancial tenets, 109–119

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I n d e x
2 4 3
management tenets, 81–108
value tenets, 121–139
Jain, Ajit, 37
Justin, Enid, 72, 73
Justin, H. J. ( Joe), 72
Justin, John, Jr., 72, 73, 74, 75
Justin Industries, 44, 72–76
Kern River Gas Transmission Project,
153
Keynes, John Maynard, 4
Kiehne, Ernie, 204 –205
Kilpatrick, Andrew, 57
Kirby Vacuum Cleaners, 44
Lama, Tony, 73
Larson-Juhl, 45, 71, 132–134
Larson Picture Frame, 132
Learning from others, 11
Legg Mason, 147–148
Legg Mason Growth Trust, 203
Level 3 Communications, 146–148
Longleaf Partners, 147–148
Loomis, Carol, 85
Loss aversion, 185
Malfeasant accounting, 104 –105
Management, quality of, 18
Management, value of, 106–108
Management tenets, 59, 81–108
Managing your portfolio, 157–175
Margin of safety, 13, 25, 131
Market, stock:
f luctuation, folly of, 25
Market potential, 17
Market value, 53, 70
Markowitz, Harry, 20, 164
Mauboussin, Michael, 208–209
McLane, Robert Drayton, 47
McLane, Robert Drayton, Jr., 47
McLane Company, 47–48, 79
Mental accounting, 185–186
Meyer, Eugene, 55
Microsoft, 123
MidAmerican Energy Holdings
Company, 152–154
Miller, Bill, 204 –206, 210
Mindless imitation as a cause of failure,
98–99
Mistakes, value of, 95
MiTek, 44 –45
Moat, def ining a, 70 –71
Mockler, Colman, 52, 127
Modern f inance theory:
Fama, Eugene, 20
Markowitz, Harry, 20
Modern portfolio theory, 21–22,
163–166
Modigliani, Franco, 20
Money, psychology of, 177–188
Mr. Market, 181–183
Munger, Charles, 2, 11, 22–24, 107,
188, 198
on Berkshire Hathaway, 22–23, 33,
95
vs. Buffet’s philosophy, 23 , 131
on fair price for quality, 23, 131
and Graham, 28, 167
and Mr. Market, 182–183
psychology of misjudgment, 28
talents of, 167–168
National Fire & Marine Insurance
Company, 31
National Indemnity Company, 31, 97
Nebraska Furniture Mart, 43
Negative cost of f loat, 35
Newman, Jerome, 12
Nocona, 73
Notebaert, Dick, 149
Oakwood Homes, 46
One-dollar premise, 117–118

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2 4 4
I N D E X
Overconf idence, 183–184
Overreaction Bias, 184 –185
Owner of the company, manager
thinking like, 41–42
Owner earnings, 113–114
Pampered Chef, 47–48, 79, 94, 116,
136
Pascavis, Travis, 138
Pentagon Papers, 55
Peter Kiewit Sons, 147
Ponzio, Craig, 132
Portfolio management, 157–175
Price per share ( Washington Post
Company), 56
Pricing f lexibility, 71
Problems, companies with, 68
Prof itability, 17
Prof it margins, 114 –117
Psychology of misjudgment, 28
Psychology of money, 177–188
Quality of management, 18
Qwest, 148–149
Rationality, 82, 85, 89–94
Reichardt, Carl, 67, 115, 129
Reinsurance, 34. (