Book Reviews, Value Investing

Lawrence Cunningham: The Essays Of Warren Buffett Fourth Edition

Essays Of Warren Buffett

Lawrence A. Cunningham, author of the best-seller, The Essays of Warren Buffett: Lessons for Corporate America, and an upcoming book, Berkshire Beyond Buffett: The Enduring Value of Values

The Essays of Warren Buffett: Lessons for Corporate America, Fourth Edition Fourth Edition by Warren E. Buffett, Lawrence A. Cunningham

The Essays of Warren Buffett – Description

The year 2015 marks the fiftieth anniversary of Berkshire Hathaway under Warren Buffett’s leadership, a milestone worth commemorating. The tenure sets a record for chief executive not only in duration but in value creation and philosophizing. The fourth edition of The Essays of Warren Buffett: Lessons for Corporate America celebrates its twentieth anniversary. As the book Buffett autographs most, its popularity and longevity attest to the widespread appetite for this unique compilation of Buffett’s thoughts that is at once comprehensive, non-repetitive, and digestible. New and experienced readers alike will gain an invaluable informal education by perusing this classic arrangement of Warren’s best writings.

The fourth edition’s new material includes:

  • Warren’s 50th anniversary retrospective, in what Bill Gates called Warren’s best letter ever, on conglomerates and Berkshire’s future without Buffett;
  • Charlie Munger’s 50th anniversary essay on ”The Berkshire System”;
  • Warren’s definitive defense of Berkshire’s no-dividend practice; and
  • Warren’s best advice on investing, whether in apartments, farms, or businesses.

The Essays of Warren Buffett – Review

Buffett, the Bard of Omaha, is a genuine American folk hero, if folk heroes are allowed to build fortunes worth upward of $15 billion. He’s great at homespun metaphor, but behind those catchy phrases is a reservoir of financial acumen that’s generally considered the best of his generation. For example, in an essay on CEO stock options, he writes, “Negotiating with one’s self seldom produces a barroom brawl.” This is his way of saying that an executive who can give himself compensation totally disproportionate to his performance surely will. There are uncountable gems of financial wisdom to be harvested from these essays, taken from the annual reports he writes for Berkshire Hathaway, his holding company. Just to pick one more, here’s a now-famous line about those he competes with when making stock-market investments: “What could be more advantageous in an intellectual contest–whether it be chess, bridge, or stock selection–than to have opponents who have been taught that thinking is a waste of energy?”

While Buffett has a policy of seldom commenting on stocks he owns–he feels public pronouncements will only lead to the public’s expectation of more public pronouncements, and he likes to keep his cards close to his vest–he loves to discuss the principles behind his investments. These come primarily from Ben Graham, under whom Buffett studied at Columbia University and for whom he worked in the 1950s. First among them is the idea that price is what you pay and value is what you get–and if you’re a smart investor, the first will always be less than the second. In that sense, the value of the lessons learned from Buffett’s Essays could be far greater than the book’s price. –Lou Schuler –This text refers to an alternate Paperback edition.

Review

”The book I autograph most.” –Warren Buffett

”Takes Warren’s brilliant letters to a still-higher level.” –Carol Loomis

”A very important book.” –Bill Ackman

From the Publisher

The book has garnered substantial critical acclaim from broad cross sections of readers; is being translated into a dozen other languages; and has been designated as a top investment/business book by reviewers ranging from CNN to JP Morgan to the Motley Fool (number 2 investment book of all time!). –This text refers to an alternate Paperback edition.

From the Author

The Essays of Warren Buffett: Lessons for Corporate America have brought great joy to many people, changing lives for the better.  Countless people have told of grandparents and parents giving the book as a gift to younger people, inspiring them in their college years and careers.  Most rewarding.” –Larry Cunningham

“I have about 32 or so college and university groups that come to see me every year.  They leave behind books to autograph, which I then send them in bulk.  Each group usually leaves 75 or so.  The Essays of Warren Buffett: Lessons for Corporate America is number one among those I’m asked to sign.” –Warren Buffett

“Larry Cunningham takes Buffett’s brilliant letters to a still-higher level by reorganizing them into single-subject chapters. The book begins, moreover, with an excellent introduction by Larry.” –Carol Loomis 

–This text refers to an alternate Paperback edition.

Essays Of Warren Buffett

The Essays of Warren Buffett: Lessons for Corporate America, Fourth Edition Fourth Edition by Warren E. Buffett, Lawrence A. Cunningham