Product Description

The Warren Buffett Way provided the first look into the strategies that the master uses to pick stocks. A New York Times bestseller, it is a valuable and practical primer on the principles behind the remarkable investment run of the famed oracle of Omaha. In this much–awaited companion to that book, author Robert Hagstrom takes the next logical step, revealing how to profitably manage stocks once you select them. THE WARREN BUFFETT PORTFOLIO will help you through the process of building a superior portfolio and managing the stocks going forward.

Building a concentrated portfolio is critical for investment success. THE WARREN BUFFETT PORTFOLIO introduces the next wave of investment strategy, called focus investing. A comprehensive investment strategy used with spectacular results by Buffett, focus investing directs investors to select a concentrated group of businesses by examining their management and financial positions as compared to their stock prices. A strategy that has historically outperformed the market, focus investing is based on the principle that a shareholder′s return from owning a stock is ultimately determined by the economics of the underlying business.

Hagstrom explains in easy–to–understand terms exactly what focus investing is, how it works, and how it can be applied by any investor at any level of experience. He demonstrates how Buffett arranges his stocks in a focus portfolio and reveals why this is as responsible for his incredible returns as the individual stocks he picks. Ultimately, Hagstrom shows how to use this technique to build and manage a portfolio to achieve the best possible results.

Product Details

• Amazon Sales Rank: #29098 in Books
• Published on: 2000-11-28
• Original language: English
• Number of items: 1
• Binding: Paperback
• 256 pages

Amazon.co.uk Review
It's no secret that most mutual funds fail to beat the performance of the S&P 500. And if the pros can't beat the averages, it's not unreasonable to assume that most individual investors can't either. Why? According to Robert Hagstrom, author of The Warren Buffett Portfolio, a big reason is the industry's emphasis on diversification. In the interest of minimising risk, many investors have "become intellectually numb to its inevitable consequence: mediocre results." As a result, they wind up owning too many stocks and churn their portfolios unnecessarily (for example, the average mutual fund holds 100 stocks and turns over 80% of its portfolio annually). In The Warren Buffett Portfolio, Hagstrom shows how Buffett and others use the idea of focus investing to organise a winning portfolio.

Unlike Hagstorm's first book, The Warren Buffett Way, which dealt with how the world's greatest investor selects individual companies, this book looks at the mathematics, the psychology, and the mental models necessary to build a successful portfolio. The basic ideas: pick no more than 10 to 15 companies with a good track record and high probability of future success, plan to hang on to them for at least five years and ignore predictions and the sometimes terrifying swings in market behaviour. It's hard to argue with Hagstrom's approach, especially when he practices what he preaches. His fund, the Legg Mason Focus Trust, has 15 stocks, an annual turnover rate of 9%, and percentage annual returns in the mid 30's. For thoughtful investors and devotees of Warren Buffett, The Warren Buffett Portfolio is well-written guide aimed at those who are looking for more than the next hot stock tip. Recommended. --Harry C. Edwards, Amazon.com

Shares, 2 December 1999
- "This book is a revelation. Excellent."

Money Observer, December 1999
- "...one of the best books ever written about Buffett."

Customer Reviews

Be careful when open your parcel from Amazon
I just wanted to let the other Amazon customers know and be careful when they open their parcels from Amazon.co.uk. Sorry, my review has nothing to do with the book cause I didn't even have a chance to read it. The parcel came full with cockroaches. I happened to open the parcel in my car. The insects run out everywhere into my car which caused expenses for dry cleaning of the interior of the car and desinfection. Amazon's customer care service couldn't find a better decision but ignore my complaint. So, next time you receive a parcel from Amazon.co.uk make sure you open it not at home, or in your car but somewhere out. I am not a citizen of the UK, in this case I am sure my consumer rights would have been properly pretected by relevant authorities. ..The only regret - the book I paid for was absolutely dirty and not readable.

Its a superb presentation of investment philosophy.
Looking forward to such presentations in future also.I am sure RH will comeup with some more. Ben Graham,Warren Buffet,Charlie Munger followed by RH thats my wish list.Can there be better script for successful movie?

excellent, a must read!
A must for all would be investors. If you thought that the way to make money long term, was divresifying your many holdings...think again. We are reminded that both Buffett and Munger stick both their fingers up at modern portfolio theory.They emphasise that the only real way to make money is too own a few wonderful companies, and hold them,preferably for ever. This book should be read by all those so-called investment professionals(i.e index fund managers)who plague the investment industry with thier pathetic,risk adjusted mumbo jumbo.After reading this they may reach investment puberty!!What Buffett and Munger have achieved is truely astounding, but at the same time superbly simple.This book along with the authors other book 'The Warren Buffett Way' explains in simple language the do's and dont's of investing.Should be regarded as another Buffett Bible.