Inside the Investments of Warren Buffet by Yefei Lu

Inside the Investments of Warren Buffet by Yefei Lu describes 20 cases spanning almost 50 years of investing.  Whether he is reviewing American Express, Berkshire Hathaway, GEICO, Coca-Cola, or IBM, the author, Yefei Lu, provides context and financial data to explain the investment.

In most cases, Lu refers to Buffett’s own annual letters to the investors in his fund and hypothesizes about possible motivations and assumptions prior to the purchase of stock.  Lu’s analysis and conjectures will be of interest to investors and students of finance, particularly those who value case studies. The book also offers a fascinating look back at cultural and behavioral changes which forced the wide variety of profiled companies to adapt and change themselves.  

The final portion of the book discusses what we can learn from Buffett and explores trends and common patterns (e.g., tendency to revisit certain industries, control of operations, growth opportunities).  Lu (who is a portfolio manager and previously worked for McKinsey) focuses on primary resources and offers detailed footnotes and a selected bibliography. I will be bringing Inside the Investments of Warren Buffet to the attention of our Business teachers.