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.
