Message Font: Serif | Sans-Serif
No. of Recommendations: 6
There is a new book out on WEB.

The title is: The Real Warren Buffett - Managing Capital, Leading People. The author is James O'Loughlin, and the book was originally published in Great Britain. There is a web site that describes the book -

As usual, the cover sheet somewhat overstates the importance of the book. It claims: "The Real Warren Buffett is the first book to uncover the truth about how Buffett has consistently delivered his astonishing performance at Berkshire Hathaway - not as a stock picker but as a CEO leading people and managing capital." Those of us who have read the other Buffett publications might feel that many of his points have been covered elsewhere, or have become apparent by listening to WEB and CM at the annual meetings.

Having said that, this is a pretty decent book. It primarily focuses on Buffett as a CEO/Manager rather than as a stock picker. It does a good job of showing how his principles of management fit well with the realities of human nature, seeking to utilize them rather than to control/change them. He talks about both successes and failures, including some analysis (limited but OK) of the Gen Re deal. He even speculates on Berkshire's future after Buffett.

I'm now on page 157 of the 237 pages of text, and find it a worthwhile and interesting addition to my Buffett library.
Print the post Back To Top
No. of Recommendations: 2
File that one along with all the other books with titles like This INVESTING Book Has Absolutely Nothing to Do WITH WARREN BUFFETT!!!!

Print the post Back To Top
No. of Recommendations: 5
I shoulda quit when I was ahead.

The last third of this book gets kinda convoluted. I'll try to explain.

The author utilizes a typical four-quadrant model to try to explain prudent capital allocation. On the left axis are the terms Important and Unimportant. Across the top are the terms Knowable and Unknowable. So there are four quadrants:

Knowable & Important
Knowable & Unimportant.

Unknowable & Important
Unknowable & Unimportant.

Knowable & Important he defines as the Circle of Competence. Good investment decisions are made if one remains in this quadrant.

Unknowable & Important he defines as the Circle of Illusory Competence. In this area, people convince/delude themselves that they know and understand more than they actually do - for various reasons due to human nature & emotions. Based on this, they make bad investment decisions.

Not a bad approach, but the author gets rather caught up in his new vocabulary - using a lot of multi-syllable words to explain the business investment universe from this viewpoint. There's some meat there, but it can get lost in the noise.

I add this so that people considering this book will be forewarned. I'll keep the book, but I now rate it about a 3.0/3.5 on a 1 (low) to 5 (high) scale.
Print the post Back To Top