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Warren Buffett Invests Like a Girl
Book

Warren Buffett Invests Like a Girl

And Why You Should, Too

LouAnn Lofton
HarperBusiness, 2011
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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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