Investing The Warren Buffett Way system was written to show exactly how Warren Buffett invests. This man is a legendary investor who has gained the respect and awe of the entire investment community with his soldier like discipline, rocketing success and his constant battle with Bill Gates as the richest man in the world. Reading the introduction of this book boasts that it is a "step-by-step guide - complete with a worksheet to assist you" which will show you "exactly how to invest like Warren Buffett... RIGHT NOW!" This sets high expectations from the start, but it does exactly what it says on the tin. It does focus on the US with American sites to get info. However, the actual system could be replicated on any market in the world. The book starts off with some concepts including visualising your stocks as companies, not just symbols and prices, diversification and your company's "moat" as well as the three biggest mistakes investors make. There were a number of "value screeners" offered so as to find a place to start. This is extremely important as a journey is difficult to end if there is no starting point. "Crunching the Numbers" covered the actual roadmap of picking out the important numbers lending to fundamental analysis and processing them. This was the part that really did it for me. There absolute clarity as to where to find these crucial "numbers". Due to the importance of this section, several screen shots are included to hold your hand completely through sifting your way to find the information required. "Valuation " summed up the preceding chapters and led us right to the decision of whether or not to invest with some minor computations, with the aid of a particular online calculator designed to facilitate us. With reference to selling, I quote "we won't be offering any vague advice here" and it's true - the book gives another simple process to make it possible for you to decide whether to hold or sell. The book finishes with some appendices i.e. a worksheet which provides the template for one's investments, suggested reading etc. For the advanced investor, I would suggest writing far out of the money calls to increase your income and perhaps do better than the The Warren Buffett Way System. Overall, I found this an excellent book and would highly recommend it to either a novice or experienced investor seeking a worthwhile, profitable system for picking out stocks to include in your portfolio.
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