The Warren Buffett Stock Portfolio was published in 2011. It aims to give readers an insight into the investment strategy pursued by arguably the world’s most savvy investor.
About the authors:
The book is written by Mary Buffett and David Clark.
Mary Buffett is a best selling author and an expert on all things finance. She has worked as an independent consultant with a number of fortune 500 firms and has taught business & finance at several California state universities.
David Clark is a world renowned expert in Buffettology – Warren Buffet’s investment philosophy. He was one of the oldest Berkshire Hathaway investors. Today he manages an investment partnership along with other Buffettologists.
The 2 have co-authored several books on Warren Buffett and his investments.
Overview:
The book breaks down Mr. Buffett’s investment thesis by separately analysing each of the companies that he is invested in (as of 2011). The book is a very easy read and follows the same simple structure for each company – its history, why it is a good business and why the stock was a good buy when Buffett bought it. To illustrate the latter, the book analyses key metrics that Mr. Warren Buffett stands by even today.
What to look for:
While the book is focused on illustrating Warren Buffett’s investment thesis, it very well summarizes histories of companies we grew up with, such as Coca Cola, AMEX etc. One of the companies is in fact responsible for giving “soap operas” their name. Mention it in the comments if you find it.
The book explains all technical concepts before diving into them. Therefore, people with little to no knowledge of finance can also navigate it with ease.
Some downsides:
With the same structure followed for each company, the book can soon become monotonous. One can easily be tempted to read the company’s history and business model, and skip the price analysis part altogether.
In a nutshell:
The book is an excellent read for people starting out in stock analysis. The simple and uniform structure will ensure that you are not lost in the jargonful world of finance. However, people with pre-existing knowledge of stock markets may quickly skim through or even skip this one and move to a more advanced read.
Plain Vanilla Finance 