acting like an owner 4–5, 21, 24, 27–8, 33, 53, 59, 90, 108, 200
Alger, Horatio 177
Bainbridge, Stephen 228
Bak, Per 151
Becker, James xii
Ben Bridge Jeweler 144
Benjamin Moore Paint 144
Berkshire Fine Spinning Associates 40
Berkshire Hathaway, acquisition of General Re 131–48
Berkshire Hathaway
acquisition strategy 81–108
as compounding machine 6–9, 15
contracts of employment 76
corporate strategy 51–5, 149–50
development of 5–6, 13–15, 33–42, 44–6
growth in value 1, 6, 22, 186–92
insurance operations 7–11, 14, 24, 89, 109–28, 169–70, 191, 215–18, 220
market efficiency in stock price 181–6
operating principles 62–80
reinvesting excess cash 6–9, 11, 68, 70–72, 74, 81
remuneration 186–90
textile operations 34–9, 78, 84–5, 202, 205
volatility in results 192–5, 199–200
boids 66–7
Bottle, Harry 146
Bridge family 95
Buffalo Evening News 69, 86, 88–9, 146, 172
Buffett Partnership 1, 13, 14, 32–3, 42–4, 79, 167, 200
Buffett, Howard 230
Buffett, Roberta 32
Buffett, Susie 230
Buffett, Warren E.
acquisition strategy 4, 11, 24, 81–108, 136, 138, 203
acting like an owner 4–5, 21, 24, 27–8, 33, 53, 59, 90, 108, 200
allocation of capital 1–3, 7, 11, 18–22, 27–8, 30–50, 54–9, 65, 79, 90–91, 149–73, 177–8, 180, 192, 200, 205, 209, 211, 227
assessment of performance 72–3
cigar butt investing 39–40, 44–5, 155
Circle of Competence 3–4, 18–22, 24, 149–73, 177–8, 180–81, 191–2, 198, 200–201, 202, 204, 207, 212, 215, 217–19, 221, 228, 235
corporate governance 4–5, 11–12, 17–18, 23, 28, 63, 180, 228–9
corporate strategy 4, 51–5, 59, 149–50
decision making 2, 4–5, 20–22, 24, 149–50, 152, 200, 209, 210–11, 215, 227
definition of competitive advantage 86–9
equation for value 9, 21, 158–9, 161, 162, 170, 189
evolution of investment principles 12–15, 19, 30–50
explosion of cognition ix, 1, 22, 24, 46, 49, 140, 155
first conclusion bias 210–12, 213
hindsight 208–9
influence of Charlie Munger 44–8, 85
inverting arguments 155–6, 201
investment principles 22–3, 45, 61–2
leadership 2–4, 17–18, 28, 60–80, 89, 145–8, 204
legacy 144–5
letters to shareholders ix, 95–9
loss aversion 119
management of change 142–8
management style 17–18, 24, 60–80, 218
mathematical ability 31, 112, 162
mistakes 18, 21–2, 24, 34–41, 50, 55, 78, 131–48, 149, 157–8, 198–200, 203–4, 210, 214
motivation 17, 60, 63, 76–7, 79, 89–90
objectivity 3, 21, 166–7, 215–19
psychological security 3, 21, 150, 165–7, 200
rules of behavior 3–4, 17, 61, 67–75, 132
selection of people 99–103
standing out from the crowd 118
stock options 11, 73–4, 189–90, 226–7
succession planning 230–38
trust 17, 21, 77, 91–3, 198–200, 201
Buffett-Falk and Co. 12–13, 31
Burlington Industries 38
Burr Williams, John 158
Byrne, Jack 147
Cabrera, Clara xi
Calvin, William 46
Capital Cities 198
capital markets 2
Chater, Nick xiii
cigar butt investing 39–40, 44–5, 155
Circle of Competence 3–4, 18–22, 24, 149–73, 177–8, 180–81, 191–2, 198, 200–201, 202, 204, 207, 212, 215, 217–19, 221, 228, 235
Circle of Doom 225–7
Circle of Illusory Competence 21–2, 24, 201, 202–29
Clinton, Bill 141
Coca-Cola 85, 118, 135, 147, 148, 160, 181
Corning 219
corporate governance 4–5, 11–12, 17–18, 23, 28, 63, 180, 228–9
CORT Business Services 144
Courier Express 146
Cypress Insurance Company 146
Daft, Douglas 147
Danley, Don 31
Darwin, Charles 210
Davidson, Lorimar 111
Demosthenes 212
Dempster Mills Manufacturing 13, 32–3, 40, 92, 146
DeNardo, Frank 146
Desforges, Linda xii
Dexter Shoe 78
Efficient Market Hypothesis 49, 187, 222
Emerson, Henry xi
Enron 224
equation for value 158–9, 161, 162, 220
Executive Jet 86, 144, 161, 231
Exxon Mobil 6
Fechheimer Bros. Co. 86, 89, 146
first conclusion bias 210–12, 213
FlightSafety International 77, 86, 144
Foundly, Neal xii
Franklin, Benjamin 121, 128, 177
Franks, John xii
Freedman, Jonathan 63–4
Fruit of the Loom 144
GEICO 86–7, 111–12, 123, 144, 147, 161–3, 212, 230
General Electric (GE) 15–20, 29, 67, 70, 77, 111, 139, 233
General Re 18, 112, 128, 131–9. 141–3, 145, 147, 164, 169, 214
get-evenitis 116
Gillette 85, 135, 148, 160, 181, 225
Graham, Benjamin 12–15, 30–32, 39, 41, 44–5, 51, 112, 162, 169, 188
Graham, Donald 148
Greenspan, Alan 23
Guerin, Rick 45
Guinness 141
Gutfreund, John 139
H.H. Brown Shoe Co. 86
Hacking, Ian 236
Hagstrom, Robert xii
Hathaway Manufacturing 40
Hawley, Michael 148
Heldmans, the 89
Helzberg’s Diamond Shops 97
Highly Probables, The 161
Hilton, Denis xiii
Hirst, Chris xii
Home and Auto 146
Huggins, Chuck 54, 65, 79, 89–90, 93, 101
Immelt, Jeff 233
Inevitables, The 160
institutional imperative 28–50, 54–7, 74, 78, 102–3, 179, 186
Intel 211
Intelligent Investor, The 30
International Dairy Queen 86, 118
Ivester, Doug 147
Jacobi, Carl 201
Jain, Ajit 112, 217–18, 220, 231, 233
James, W. 131
JDS Uniphase 219
Jensen, Michael 122
Jett, Joseph 139
Johns Manville Corp. 144
Johnson, Norman 149
Jordan’s Furniture 92, 93, 144
Justin Industries 144
Justin, John 95
Justin’s Brands 100
Kiewit, Peter 45
Kilpatrick, Andrew xi
Kilts, James 225
Kinstler, Brad 146
Kirby 89
Langevoort, Donald 63
LeDoux, Joseph 165
Lewis, Michael 49
Lichtenstein, Seymour 100
Liesche, Phil 118–19
Lowenstein, George F. 167
Lowenstein, Roger xi–xii
Lucent 219
Mack, Chris xii
Marconi 178–80
margin of safety 169–70
Mauboussin, Mike xii
McBride, Mark xii
McCann, Frank xii
Microsoft 211–12
MidAmerican Energy 144
MiTek Inc. 144
motivation 63–4
Mozer, Paul 139
Munger, Charlie xi, 5, 7, 14–15, 19, 35, 37, 44–50, 54–5, 60–62, 64, 85, 89, 95, 101, 103, 106, 115, 118, 124, 131, 139, 145–6, 150–51, 153, 155–6, 162–5, 170, 182–3, 185–8, 191–2, 197, 201–2, 204, 207, 210, 212, 215, 224
Muradoglu, Dr. Gulnur xiii
National Fire and Marine 111
National Indemnity Co. 13, 41, 111, 118, 127, 146, 179
Nebraska Furniture Mart 86–7, 89, 161
Nicholson, Nigel 109
Nortel 219
Olsen, Bob xiii
Oskamp, Stuart 104–5
Outstanding Investor Digest xi
Owner’s Manual 42, 61–2, 65, 67, 69, 76
Pascal, Blaise 204
Peters, Edgar xiii
psychological reactance 115
Quaker Oats 147
R.C. Willey Home Furnishings 60, 86, 100, 102
Resnick, Mitch 66
Reynolds, Craig 66–7
Ringwalt, Jack 118
Rooney, Frank 89
Russell, Bob 31
S&P 500 1, 131, 142, 184, 196, 199
Sagan, Carl 235
Sainted Seven, The 89–90, 99–101
Salomon Inc. 139
Schkade, David 179
Schloss, Walter 99
Schneider, Stephen 52
Schroeder, Alice xiii
Scott Fetzer Manufacturing Group 79, 89
See’s Candies 54, 64, 69, 79, 86, 88–90, 93, 118, 162–3, 179
September 11, 2001 125–6, 131–2, 137–8, 169
Seward, John 146
shareholder-partners 167–9, 195–8
Shaw Industries 144
Shubik, Martin 120
SQUARZ 194–5
Sun Trust Banks Inc. 147
super-catastrophe insurance 215–18, 220
Tatelman, Barry 92
Tatelman, Elliot 92
Thomas, Mark xii
U.S. Liability 144
Ueltschi. Al 77
Ustinov, Peter 121
Washington Post 148
Watson, Randy 100
Watson, Thomas J. Sr. 150
Welch, Jack 15–20, 29, 58–9, 67–8, 70, 89, 92, 111, 139, 146, 233,
Williams, James 147
Wood, Arnold xiii
World Book 89
WorldCom 224
XTRA Corporation 144
Zeien, Alfred 148