Buffet Beyond Value by Prem C.Jain is an easy read for novice investors who want to understand what Warren Buffet looks out for when investing. The book uses information from Berkshire Hathaway annual reports, Buffett’s letters to shareholders and partners in his partnership firms to teach us how Buffet actually thinks and invests. A key message consistent throughout the book is the identification of quality and honest managers, who has helped Warren Buffet drive his investments. The book also goes through the temperament an investor needs to be successful in the stock market. One such example which hit out at me would be the virtue of patience. It goes on to share the case when Berkshire made a large nontraditional investment of $4.6 billion in long-term zero-coupon treasury bonds, instead of making investments in the stock market during a time of exuberance.
Prem C.Jain then talks about the notion of growth investing, and how Buffet identifies growth companies. He also goes into detail how Buffet combines both value and growth- values he learnt from Benjamin Graham and Philip Fisher when investing. A few parts of the book are also devoted to psychology, diversification and an analysis of the insurance and retail sectors. Warren Buffet’s mistakes in the stock market are also shown, and one can definitely learn alot from them.
Overall, I think this book is a great read for those who are just starting out in investing and who may find investment classics like The Intelligent Investor hard to read. The author is clear and concise, and the topics on temperament and psychology are key takeaways for me.