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Warren Buffett Invests Like a Girl

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Warren Buffett Invests Like a Girl

And Why You Should, Too

HarperBusiness,

15 min read
10 take-aways
Audio & text

What's inside?

Are the feminine aspects of Warren Buffett’s temperament the reason he’s the world’s greatest investor?

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Editorial Rating

7

Qualities

  • Applicable

Recommendation

When it comes to investing, no one can match Warren Buffett. LouAnn Lofton, an editor for The Motley Fool financial services firm, compellingly argues that Buffett is a great investor because he activates deliberative “feminine” wisdom when making investment choices. That’s the book’s most inventive thought. The solid investing advice is comfortably traditional and even a bit repetitive. However, the just “like-a-girl” title draws attention to Buffett’s studious, informed, reasonable investing style, which mirrors the traits of many women investors. Lofton explains why she believes this is the ideal investing temperament. getAbstract recommends her straightforward report to potential investors, particularly those who want to be like Warren...that is, rich, successful and in touch with his feminine side, at least when it comes to money.

Summary

The Right Temperament for Successful Investing

Warren Buffett is the “greatest investor of all time.” The book value of Berkshire Hathaway, Buffett’s umbrella investment firm, increased 490,409% from 1964 to 2009. For more than four decades, Buffett’s compounded annual book value has been twice the return of the Standard & Poor’s 500. He is one of the world’s richest men, perhaps because he has the ideal nature for an investor. Buffett is unemotional, skeptical and patient. He avoids risk. He’s not concerned about the actions of other investors. He remains calm and methodical, and, before selecting any stock, he does exhaustive research. He never invests in businesses he does not understand.

During the catastrophic stock slide of 2008, when the Dow Jones fell below 10,000 points for the first time in four years and the S&P 500 dropped by 42%, many Wall Street traders and other investors dumped their shares. Buffett assessed the financial carnage, examined many famous corporations whose stock prices had fallen to bargain rates and began to invest. Buffett spent $20 billion “in companies like Goldman Sachs and General Electric.” He remained centered and hewed...

About the Author

LouAnn Lofton, managing editor for online content at the multimedia Motley Fool financial services firm, is assistant editor of The Motley Fool Stock Advisor.

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    R. B. 1 decade ago
    Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old
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    J. S. 1 decade ago
    this is very interesting. Warren Buffet is an icon of modern money games. he is both strongly gifted in analyzing a company's value and working with people he likes. that seems to me a very modern and fair way as an investor. Furthermore, I like the paragraph about increasing fees of shortterm investments. This would help the economy re-gain it's stability and would cut off casino games which are after all just interesting for a few rich people to become even richer.