Buffett's Tips

What if you could learn financial literacy from Warren Buffett himself?

Finance is a language like any other: the more fluently you speak it, the further--and more comfortably--you travel. And if you want to improve your financial literacy, what better teacher could you have than Warren Buffett? Often described as the greatest investor of all time, Warren Buffett started his investment firm with$100 in the late 1950s and went on to become the billionaire and sage we know today. Along the way he's reaped huge profits for fellow investors in Berkshire Hathaway and remains one of the most sought-after and closely watched figures in the business world.

So how did he do it? In Buffett's Tips, award-winning professor and professional investor John M. Longo demonstrates just how by translating decades of Buffett's writings and media appearances into a 100 straightforward tips and strategies anyone can follow for enhanced financial literacy and independence, including:

• Essential concepts like the time value of money and compound interest

• Basic financial instruments, such as savings and checking accounts and certificates of deposit

• Approaches to valuing stock, including discounted cash flow and relative valuation

• How to build a portfolio in accordance with Buffett's two golden rules

Whether you want to grow your personal finances, develop your business acumen, or improve softer career skills such as emotional intelligence, there's no one better to learn from than the most famous investor in the world--and no better way to do that than having a copy of Buffett's Tips close at hand.

Auteur

JOHN M. LONGO is a Professor of Profes- sional Practice in the Finance and Economics Department at the Business School of Rutgers University. He has also been visiting professor of finance at EMBA-Global Asia--the joint Executive MBA program of Columbia Business School, London Business School, and The University of Hong Kong. He has more than 25 years of professional investment experience and is currently serving as Chief Investment Officer of Beacon Trust, a $3+ billion registered investment advisor. A Chartered Financial Analyst (CFA), Professor Longo earned an MBA in Finance and a PhD in Finance from Rutgers, where he also received his BA degree.

TYLER J. LONGO is a high school student in the Princeton, NJ area. He has completed the Introduction to Business, Finance, and Economics program for high school students at Columbia University and additional coursework in AP Economics, AP Statistics, and Financial Literacy. He has become financially literate in large part due to his work on this book.

Texte du rabat

Praise for BUFFETT'S TIPS "John Longo and his son, Tyler, have performed a valuable service, taking the wisdom of Warren Buffett (the supply of which is ample) and distilling from it 100 'tips,' with the authors' own explanatory text, to guide the reader from financial ignorance to a degree of financial literacy. Along the way, there are useful lessons for life in general. If you have a friend, child, or parent who needs a pathway to a better understanding of some financial fundamentals, get this book for themit'll go a long way to bringing them up to speed." Simon Lorne, Vice Chairman and Chief Legal Officer, Millennium Management LLC; former Partner, Munger, Tolles & Olson "Priceless. 100 investment and life tips from the Oraclea great read for the beginning investor." S. Basu Mullick, retired Portfolio Manager and Managing Director, Neuberger Berman; former General Partner, Omega Advisors; noted value investor; former "Marketwatch Fund Manager of the Year" "John Longo has a well-earned reputation for excellence in teaching at the University level. Working with his son Tyler, John now extends his passion for education out of the classroom and across generations with this guidebook to the essential tools for financial proficiency." Gregory P. Francfort, noted value investor; former Institutional Investor "All-Star Analyst" "John and his son have written an invaluable guide steeped in the wisdom of Warren Buffett. Marrying sound financial advice with general life lessons, Buffett's Tips provides a solid foundation for advancing financial literacy across a broad multi-generational audience." Joshua Rosenbaum, Joshua Pearl, Joseph Gasparro, co-authors, The Little Book of Investing Like the Pros and Investment Banking: Valuation, LBOs, M&A, and IPOs

Résumé
What if you could learn financial literacy from Warren Buffett himself?

Finance is a language like any other: the more fluently you speak it, the furtherand more comfortablyyou travel. And if you want to improve your financial literacy, what better teacher could you have than Warren Buffett? Often described as the greatest investor of all time, Warren Buffett started his investment firm with$100 in the late 1950s and went on to become the billionaire and sage we know today. Along the way he's reaped huge profits for fellow investors in Berkshire Hathaway and remains one of the most sought-after and closely watched figures in the business world.

So how did he do it? In Buffett's Tips, award-winning professor and professional investor John M. Longo demonstrates just how by translating decades of Buffett's writings and media appearances into a 100 straightforward tips and strategies anyone can follow for enhanced financial literacy and independence, including:

• Essential concepts like the time value of money and compound interest
• Basic financial instruments, such as savings and checking accounts and certificates of deposit
• Approaches to valuing stock, including discounted cash flow and relative valuation
• How to build a portfolio in accordance with Buffett's two golden rules
  Whether you want to grow your personal finances, develop your business acumen, or improve softer career skills such as emotional intelligence, there's no one better to learn from than the most famous investor in the worldand no better way to do that than having a copy of Buffett's Tips close at hand.

Contenu

Preface xv

Acknowledgments xix

Chapter 1: Who is Warren Buffett? 1

Introduction 1

Buffett the Teen 2

Who Are We to Write This Book? 3

What is Financial Literacy and Why Does It Matter? 4

Some Fundamental Buffett Tips 5

Buffett's Work Ethic 7

Buffett Has Spent a Lifetime Learning 8

Why is Buffett Happy? 10

Improve Your Communication Skills and See Your Lifetime Earnings Increase 50% 12

Acting with Integrity is the Right Thing to Do and Good for Business 13

Buy Low, Sell High 14

Buffett Doesn't Succumb to Peer Pressure: The Inner Scorecard 15

Buffett's Fallback CareerComedian 17

Buffett's Lasting Legacy: Philanthropy 18

Buffett's Tips from Chapter 1 19

References 20

Chapter 2: Investment Fundamentals According to Buffett 23

Introduction 23

The Miracle of Compound Interest Explained 24

Trade-Offs: A Fundamental Principle of Life 27

The Saint Petersburg Paradox: A Lesson on Risk and Return 29

Risk and Return: The Evidence 30

Diversification: One of the Few Free Lunches in Life 32

Supply and Demand Determine Price 33

Summary on Financial Fundamentals 35

Buffett's Tips from Chapter 2 36

References 36

Chapter 3: Bank Accounts, Debit Cards, Credit Cards, and Your Credit Score 38

Introduction 38

Insured Bank Deposits 38

Savings Accounts and Certificates of Deposit (CD) 40

Checking Accounts and Electronic Bill Payment 42

Parts of a Check 43

Balancing a Checkbook 44

Debit Cards and Automated Teller Machines (ATM) 45

Credit Cards and Charge Cards 46

Apps to Send Money: PayPal, Venmo, Zelle, Apple Pay, Android Pay, and so forth 49

Your Credit Score: A Report Card of Your Financial Responsibility 50

Personal Bankruptcy: Try to Avoid at all Costs 52

A Word …