top of page

Book "The Warren Buffett Way"

I will do a review of the book and pass through some topics that are more relevant in my humble opinion, also show some classifications that I have been using in my readings, I do this way because i believe it easier to organize the subject and ideias.

This book demonstrates the way of thinking, ratiocinate and operate of Warren Buffett as popularly known as the biggest investor of all time, the form this book shows that Buffett is a simple man and pragmatic, but with resilience and being a visionary, deserves attention.

Draws attention that even though this book was written in 1994 with some new editions released a few years ago, it became so actual, and even in moments that are portraying scenarios of decades ago, we see that endures until today.

Buffett highlight that an investor is a person who invests for long term and really understands in what company is investing, not just knowing the business, but the culture and the people that manage the company, those who invest following other people and aim for quick returns are known as speculators, fast returns it is not the goal of Buffett and even less the way he analyses his gains. The book reveals some knowledge and ideas that independent what kind of review that is, it's necessary to read this book, lot of things, we only absorb and understand with our own way of reading, there is a couple of phrases, advice, ideas and how I separate "Sundry" topics inside the book that I cannot include in a review. I read this version of the book link (it is in portuguese).

The way I distribute colors in the topics below is the same way I do in my readings, with that in mind all the reviews will follow the same standard, I have selected some points that I believe deserve to be highlighted:


"It's not what you don't know that gets you into trouble, but what you're sure you know and don't really know". pg12

"I prefer to be vaguely right than to be precisely wrong" pg97

"Like God, the market helps those who help themselves, but unlike God, the market does not forgive those who do not know what they are doing". pg103

"What matters is not where you look, but what you see".pg159

"Wisdom is acquired at the cost of much suffering". pg184

"In the short run, the market is a ballot box, but in the long run, it is a precision balance". pg200

"The strongest of all warriors are these two: time and patience". pg227


If the CEO looks forward to a potential acquisition that requires a 15% return on investment to justify that purchase, Buffett shows how is remarkable the facility with which the support team immediately reports that business can indeed reach a 15,1%. pg92

  • Principles of WB way of investing pg83


  1. Does the business is simple and understandable?

  2. Does the business have a history consistent with operations?

  3. Does the business have a perspective favorable in long term?


  1. Do the managers are rational?

  2. Does the Management is transparent with the shareholders?

  3. Does the Management resist the institutional imperative?


  1. How much the business worth?

  2. The business can be bought with a significant discount in relation to its value?

Four Financial Principles: pg94

  1. Focus on the return of net worth, not on profit by share.

  2. Calculate the "profits of the owner" to have an estimated true value. (Profits of the owner = Net income + depreciation - investment in capital)

  3. Search for companies with high-profit margins.

  4. For each penny withheld, be known that the company has created at least a penny of market value.


"It is only possible to generate great achievements from your own ideas". pg31


"You need to consciously decide whether you want to change the way you think and behave. Acquiring new habits and thinking patterns doesn't happen overnight."pg173

"Intelligence tests like IQ measurements or college entrance tests are weak methods for measuring rational thinking: 'At best, they provide moderate predictions, and some rational thinking skills are totally dissociated from intelligence" (Professor Keith Stanovich). pg231


bottom of page