Even Buffet Isn’t Perfect




5 –
Fair             Read it when you have
nothing else to do

The book
was granted as a gift at the courtesy of the author. It was great and honorable
to meet him. His animated speech demonstrated enormous amount of knowledge and
wisdom.

EBIP (not
EBIT, hehe) book has only 200 pages, barely a day’s read. It is exclusively, as
its title suggested, to explore the rather mystified investment realm of the 2nd
richest person, Warren Buffett. EBIP is a very simple book. As much as its page
number can contain, it has rather comprehensive coverage of Berkshire Hataway.
Other than the basic concepts, it evidently tried to avoid hard financial calculation
and complex concepts. While it is easy for general reades, it may not be very
enlightening to a financial student.

The book went
great depth to explore the story behind Buffett’s investments. And through
those stories, it tried to identify Buffett’s personality and investment style.
Buffett distastes short term investment (his reluctance to invest during Dotcom
boom was notoriously criticized). He loves investing his money and watch it to multiply
several folds over a great period of time. However, it is not a strategy that
can be replicated easily. A normal investor can neither wield that massive
amount of capital nor stay in a position with loss or timid return for multiple
years.

Whenever
comes to wealth, one question always ponders at the back of my mind. Is market
value of stock holding really wealth? If Buffett is to liquidate all his
position, will the market be able to absorb that massive pressure from the
supplier side? And if not, how much will his position really worth? Stock has
been aggressively used as collateral for loans, but stock is not cash, it is
not even any tangible asset. At best, it is just a piece of paper with an
imaginative value. When someone dump 10% share of billions capitalization company,
the share price will collapse. In that perspective, I always feel the values of
rich based on share is irrationally inflated

Overral,
it is a good book to spend time with. In a very simple way, It gives many
valuable insight of Berkshire Hathaway.

Advertisements

3 thoughts on “Even Buffet Isn’t Perfect

  1. I can\’t even understand what you\’re saying. I\’m not a financial student so how am I to understand. You\’re so full of yourself.

  2. hehe, this book is very much written in layman\’s language. if u interested in finance or u r a fan of Mr. Buffett, it is a good book to start.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s