on 15 November 2009
I don't think that many people see Buffett as a trader. Most view him as a long-term investor who buys companies that possess competitive advantages and holds them forever. However, the author points out that Buffett has used many different investment strategies such as cigar butt, value investing, special arbitrage situations, workouts, distressed debt, merger arbitrage, and spin-offs. This book covers all of these strategies. So those who are looking for the classic Warren Buffett buy-and-hold strategy might find it disappointing.
He made pretty good money using other strategies, but unfortunately many of these opportunities do not exist in the same way as they did years ago. The reason for this is the Internet and the growing number of hedge funds exploiting these same opportunities. I found it interesting to learn how Buffett evolved as the financial environment was changing. I think that Buffett's experience with so many investment strategies gives him an edge over other money managers because it makes him well-rounded.
- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market