Buffett's Tips, A Guide to Financial Literacy and Life by John M. Longo -- Read -- Imperial Library of Trantor

Index

Cover Table of Contents Title Page Copyright Dedication Preface

Reference

Acknowledgments 1 Who Is Warren Buffett?

Introduction Buffett the Teen Who Are We to Write This Book? What Is Financial Literacy and Why Does It Matter? Some Fundamental Buffett “Tips” Buffett's Work Ethic Buffett Has Spent a Lifetime Learning Why Is Buffett Happy? Improve Your Communication Skills and See Your Lifetime Earnings Increase 50% Acting with Integrity Is the Right Thing to Do and Good for Business Buy Low, Sell High Buffett Doesn't Succumb to Peer Pressure: The Inner Scorecard Buffett's Fallback Career—Comedian Buffett's Lasting Legacy: Philanthropy References

2 Investment Fundamentals According to Buffett

Introduction The “Miracle of Compound Interest” Explained Trade-Offs: A Fundamental Principle of Life The Saint Petersburg Paradox: A Lesson on Risk and Return Risk and Return: The Evidence Diversification: One of the Few Free Lunches in Life Supply and Demand Determine Price Summary on Financial Fundamentals References

3 Bank Accounts, Debit Cards, Credit Cards, and Your Credit Score

Introduction Insured Bank Deposits Savings Accounts and Certificates of Deposit (CD) Checking Accounts and Electronic Bill Payment Parts of a Check Balancing a Checkbook Debit Cards and Automated Teller Machines (ATM) Credit Cards and Charge Cards Apps to Send Money: PayPal, Venmo, Zelle, Apple Pay, Android Pay, and so forth Your Credit Score: A Report Card of Your Financial Responsibility Personal Bankruptcy: Try to Avoid at all Costs A Word on Bitcoin from Buffett References

4 Bonds and Inflation

Introduction US Savings Bonds Other US Treasury Fixed Income Securities Inflation and the Consumer Price Index (CPI) Bond Ratings and Corporate Bankruptcy Corporate Bonds, Municipal Bonds, and Bowie Bonds Bowie Bonds and Other Asset-Backed Securities The Federal Reserve: The Central Bank of the United States What Determines Interest Rates? Intuition on Estimating the Price of a Bond So Are Bonds Good Investments? A Note on Negative Bond Yields Appendix References

5 Stock Market Fundamentals

Introduction Initial Public Offerings (IPOs): The Birth of a Stock Investment Banks and Investment Bankers The Main Event: The Stock Begins Trading on the Exchange The Stock Exchange A Sidebar on Stock and Mutual Fund Symbols Dividends Large Cap vs. Small Cap Growth vs. Value Domestic vs. International An Index Fund: A Great “Set It and Forget It” Long-Run Investment Beating the Market and the Efficient Market Hypothesis Meet Mr. Market, the Manic-Depressive Stock Market Appendix References

6 Buffett's Approach to Stocks

Introduction Estimating the Value of a Stock Getting a Price Target with the Discounted Cash Flow Model Getting a Price Target with the Wall Street P/E Model Buffett's Approach to Stocks Getting into the Buffett Mindset on Investing Stay within Your Circle of Competence The Importance of Being Patient Good vs. Bad Companies and the Passage of Time How Buffett Thinks About Change in an Industry Types of Businesses Buffett Likes Demonstrated Consistent Earnings Power Look for Companies with Good Management Buy Companies That Have the Power to Overcome Inflation Focus on Firms with Favorable Long-Term Prospects When to Sell Summarizing Buffett's Approach References

7 Accounting Fundamentals: The Report Card for Businesses

Introduction The Income Statement: A Company's Report Card for One Period Apple's Income Statement The Balance Sheet: A Picture of a Company's Report Card Since Inception Current Assets Long-Term Assets Liabilities Current Liabilities Long-Term Liabilities Stockholders' Equity A Quick Note on the Statement of Cash Flows Summary References

8 Buffett's Approach to Portfolio and Risk Management

Introduction The Key to Selecting a Well-Diversified Portfolio: Correlation A (Theoretical) Portfolio with No Risk Selecting an Optimal Diversified Portfolio: The “Business School” Approach Buffett's First Approach to Portfolio Selection: Index Funds Buffett's Second Approach to Portfolio Selection: Expert Mode A Compromise Solution to Portfolio Selection How Many Stocks Make a Diversified Portfolio? The “Business School” Approach to Risk Buffett's Critique of the Business School Approach to Risk Buffett's Approach to Risk Buffett on Gold Summarizing Buffett's Views on Risk Endnote on CAPM References

9 Business 101: Companies You Should Know

Introduction The Dow Jones Industrial Average: The Oldest Diversified US Stock Market Index How the Dow Is Calculated An Explanation of Stock Splits Different Share Classes and Buffett on Stock Splits Current Stocks in the Dow Jones Industrial Average Materials Stocks in the Dow Chevron (NYSE: CVX) Dow Chemical (NYSE: DOW) Consumer and Business Services Stocks in the Dow Home Depot (NYSE: HD) McDonald's (NYSE: MCD) Walmart (NYSE: WMT) Consumer Goods Stocks in the Dow Apple (NASDAQ: AAPL) Coca-Cola (NYSE: KO) Nike (NYSE: NKE) Procter & Gamble (NYSE: PG) Walgreens Boots Alliance (NASDAQ: WBA) Walt Disney (NYSE: DIS) Financial Stocks in the Dow American Express (NYSE: AXP) Goldman Sachs (NYSE: GS) JPMorgan Chase & Co. (NYSE: JPM) Travelers (NYSE: TRV) Visa (NYSE: V) Health Care Stocks in the Dow Amgen (NASDAQ: AMGN) Johnson & Johnson (NYSE: JNJ) Merck & Co. (NYSE: MRK) UnitedHealth Group (NYSE: UNH) Industrial Goods Stocks in the Dow Boeing (NYSE: BA) Caterpillar (NYSE: CAT) Honeywell (NYSE: HON) 3M Company (NYSE: MMM) Technology Stocks in the Dow Intel (NASDAQ: INTC) International Business Machines (NYSE: IBM) Microsoft (NASDAQ: MSFT) salesforce.com (NASDAQ: CRM) Telecommunications Services Stocks in the Dow Cisco Systems (NASDAQ: CSCO) Verizon (NYSE: VZ) Some Blue-Chip US Stocks That Aren't in the Dow The FANG Stocks—They Don't Bite China's Emerging Titans Some International Energy Titans Some Global Consumer Titans Some Global Financial Service Firms References

10 Business 101—Past and Present Business Leaders, or Who's Who in Business

Introduction Past Business Leaders Rose Blumkin (Mrs. B) Andrew Carnegie Walt Disney Thomas Edison and Jack Welch Henry Ford Katharine Graham William Randolph Hearst Steve Jobs Ingvar Kamprad Ray Kroc Estee Lauder J.P. Morgan John D. Rockefeller Cornelius Vanderbilt Sam Walton Thomas Watson Jr. Present Business Leaders Bernard Arnault Mary Barra Jeff Bezos Richard Branson Michael Bloomberg Sergey Brin, Larry Page, and Sundar Pichai Shawn Carter, Beyoncé Knowles, Sean Combs, and Andre Young Tim Cook Jamie Dimon Jack Dorsey Bill Gates, Paul Allen, and Steve Ballmer Reed Hastings Kylie Jenner and Robyn Fenty Phil Knight Jack Ma, Pony Ma, and Robin Li Rupert Murdoch Elon Musk Amancio Ortega Howard Schultz Oprah Winfrey Mark Zuckerberg and Sheryl Sandberg References

11 Being Thrifty like Buffett: Ways to Save Money

Introduction Your Library: Free Books, Magazines, Newspapers, Music, Movies, and More Free Educational Courses: Khan Academy, Coursera Websites for Free Stuff Free Activities Amazon.com: The World's Biggest Store Comparison Shopper Tools: Your New Best Friend Barter: Turning a Cell Phone into a Porsche Convertible Eat a Low-Cost Meal, Periodically Shop Private Label and Generic Items Clothes: Outlet Stores, Vintage Items, and Buying Off-Season Buying Gasoline Coupons, Double-Couponing, Triple-Couponing, and Groupon Rewards Programs Negotiate with Cell Phone, Cable, and other Service Providers Yard Sales, Flea Markets, and More: Turning Trash into Treasure Do-It-Yourself Donate Things to Charity Avoid Shooting Yourself in the Foot with Bad Habits Tying It All Together in a Budget Appendix: Sample Budget References

12 Buffett's Views on Cars and Homes

Introduction Do You Need a Car? New Cars vs. Used Cars Buying vs. Leasing a Car The Best Time to Buy or Lease a Car Home Basics Finding A Home Bidding for a Home Paying for a Home: The Down Payment Paying for a Home: The Mortgage A “House Hack”: Getting Someone to Pay (Most of) Your Mortgage Looking Under the Hood of a Mortgage What Determines Home Prices? References

13 Buffett on Dale Carnegie, Communication Skills, and Emotional Intelligence

Buffett Learns Life-Changing Skills in a Dale Carnegie Course CliffsNotes Version on Dale Carnegie and How to Win Friends and Influence People Things How to Win Friends and Influence People Will Do for You Techniques in Handling People According to How to Win Friends and Influence People Six Ways to Make People Like You According to How to Win Friends and Influence People How to Win People to Your Way of Thinking, According to How to Win Friends and Influence People What Is Emotional Intelligence (EQ)? Emotional Intelligence (EQ): Some Details Have A Great Posse References

14 Buffett's Tips for College

Introduction College: The Basics Getting into a College Graduate School: Optional for Some Jobs, Mandatory for Others Paying for College: Scholarships and Grants Paying for College: The Three-Year Plan for Super Achievers Paying for College: 529 Plans Paying for College: Student Loans Paying for College: On- and Off-Campus Jobs Your Resume: A Snapshot of Your Qualifications for a Job Putting Together Your Resume The Objective Section The Education Section The Work Experience Section The Skills Section The Activities and Interests Section Cover Letter Appendix References

15 Buffett's Tips for Careers

Introduction LinkedIn Profile: Your Online Resume Finding an Internship or Job The Job Interview(s): Preparation The Job Interview(s): Acing Your Interview The Job Interview(s): Compensation, or Show Me the Money! Succeeding on the Job Financial Paperwork After Getting a Job Forms W-2 and W-4 Form 1040: The Annual Income Tax Form and “The Buffett Rule” Retirement Plans Becoming a 401(k) or IRA Millionaire Appendix References

16 Buffett's Tips for Philanthropy

Buffett's Huge Gift and the Giving Pledge Getting Involved in Philanthropic and Charitable Activities Measuring Performance Market-Based Economies Are Good … Unless You Wind Up as Roadkill It's Not All About the Benjamins The Loss of Reputation Hurts More Than the Loss of Money Inheritance Matters Buffett's Definition of Success Appendix References

Glossary of Financial Terms in “Plain English” Index End User License Agreement

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