Episode 18 - Buffettology

‘Buffettology: The previously unexplained techniques that have made Warren Buffett the world’s most famous investor’ by Mary Buffet and David Clark

So much has been written about Warren Buffet and his investing philosophy. Yet, we are always craving to learn more about the man himself and about his winning ways that have made him the ‘Oracle of Omaha’. Such is the magic of his investing success.

In their book ‘Buffettology: The previously unexplained techniques that have made Warren Buffett the world’s most famous investor’, Mary Buffet and David Clark aptly capture the teachings of Warren Buffet and explain the magic of this investing genius.

• Price is the most important factor. What you pay for an investment will determine your rate of return. Thus, you should always aim to pay a low price for a good investment.
• You should only invest in companies that have an expected annual compounding rate of return of 15% or higher.
• While short-term gains of 35% may sound great, it is better to consistently generate 20% plus returns.
• The best way to create wealth is to buy good businesses and hold them for the long-term so that the power of compounding can multiply your wealth.
• Buy companies with predictable and above-average earnings and profitability.
• Companies that have a sustainable competitive advantage tend to witness consistent long-term growth.

This book is a treasure trove of investment nuggets that have defined Warren Buffet’s investment philosophy. You can listen to the podcast on the Edelweiss Mutual Fund website, Spotify, Google Podcasts and Apple Podcast. We hope you enjoyed this podcast and will tune in to listen to more such podcasts on investing nuggets. If you are a bookworm then you can also read the book summary here