The Warren Buffett Way, 3rd Edition

Warren Buffett is the most famous investor of all time and oneof today’s most admired business leaders. He became abillionaire and investment sage by looking at companies asbusinesses rather than prices on a stock screen. The first twoeditions of The Warren Buffett Way gave investors theirfirst in-depth look at the innovative investment and businessstrategies behind Buffett’s spectacular success. The newedition updates readers on the latest investments byBuffett. And, more importantly, it draws on the new field ofbehavioral finance to explain how investors can overcome the commonobstacles that prevent them from investing likeBuffett.

New material includes:

How to think like a long-term investor – just likeBuffett
Why “loss aversion”, the tendency of most investorsto overweight the pain of losing money, is one of the biggestobstacles that investors must overcome.
Why behaving rationally in the face of the ups and downs of themarket has been the key to Buffett’s investing success
Analysis of Buffett’s recent acquisition of H.J. Heinzand his investment in IBM stock
The greatest challenge to emulating Buffett is not in theselection of the right stocks, Hagstrom writes, but in having thefortitude to stick with sound investments in the face of economicand market uncertainty. The new edition explains thepsychological foundations of Buffett’s approach, thus givingreaders the best roadmap yet for mastering both the principles andbehaviors that have made Buffett the greatest investor of ourgeneration.