All ideas
Warren Buffett in a Nutshell
Three mentors, three lessons, four pillars: Buffett's entire investing philosophy on one page.
Three mentors shaped Buffett. Each taught him one thing. Together, they became four rules.
Warren Buffett
Phil Fisher
Lessons
- Focused portfolio
- Long-term holdings
From FisherBuy for the long term
Benjamin Graham
Lessons
- Buy stocks at attractive valuations
From GrahamBuy at the right price
Charlie Munger
Lessons
- Invest in companies with a long-term, sustainable competitive advantage
From MungerBuy the right stocks
Final understandings
01
Understandable business model
- Simple, and fits within your circle of competence
- Analyzed in depth: operations, financials, sustainability, and valuation
02
Honest and efficient management
- Integrity
- Transparency and accountability
- Vision, passion, and execution
- Efficient use of shareholders' funds
03
Sustainable competitive advantage
- Long-term economic moat
- Strong, clean balance sheet
- Fat margins, high ROE / ROCE, and growing free cash flow
04
Attractive valuation
- Buy with a margin of safety
- A wonderful business at a fair price beats a fair business at a wonderful price
Go deeper
Free, straight from the source
- Berkshire Hathaway shareholder letters
- Buffett Partnership letters (1957–1970)
- Transcripts of Berkshire Hathaway annual meetings
Books
- Warren Buffett’s Ground Rules by Jeremy Miller
- The Warren Buffett Way by Robert Hagstrom
- Buffett: The Making of an American Capitalist by Roger Lowenstein
- The Warren Buffett Portfolio by Robert Hagstrom
- The Snowball: Warren Buffett and the Business of Life by Alice Schroeder
Disclaimer. Educational content only. Not investment, legal, tax, or financial advice. References to specific investors are illustrative and imply no endorsement or expectation of comparable results.