Monday, February 27, 2012

A Few Lessons for Investors and Managers - By Peter Bevelin

As Warren Buffett mentioned in his Letter to Shareholders, Peter Bevelin has put together a new book explaining Berkshire’s investment and operating principles. I’ve interview Peter twice on this blog (HERE and HERE) and those interviews are probably the most popular things I’ve put up over the years. The book will be released at the Annual Meeting on May 5th, but you can preorder a copy HERE. A description from the site is copied below.


Peter Bevelin begins A Few Lessons for Investors and Managers with Warren Buffett’s wisdom, "I am a better investor because I am a businessman and a better businessman because I am an investor." This book is about how managers and investors can increase their chance of success and reduce the chance of harm if managers think more like investors and investors more like businessmen.

There are a lot of books about Warren Buffett, but A Few Lessons for Investors and Managers is different. It tells in a short-easy-to-read way about what managers and investors can learn from Buffett. This is a selection of useful and timeless wisdom where Warren Buffett in his own words tells us how to think about business valuation, what is a good and bad business, acquisitions and their traps, yardsticks, compensation issues, how to reduce risk, corporate governance, the importance of trust and the right culture, learning from mistakes, and more.


  1. What Investing in Financial Assets is All About
  2. Valuation
  3. The Value of a Business
  4. Return on Tangible Invested Capital Refects the Cash Flow Generating Characteristics of the Business
  5. Business Characteristics: The Great, the Good and the Gruesome
  6. Past Results as a Guide: Sometimes Useful and Sometimes Dangerous
  7. The Importance of Trustworthy and Talented Management
  8. The Importance of Clear Yardsticks to Judge Management Performance
  9. Corporate Governance
  10. Owners and Management
  11. Management Compensation: I Get What I Reward For
  12. Mergers and Acquisitions: Dumb Acquisitions Cost Owners Far More than Most Other Things
  13. A Few Management Issues
  14. How to Reduce Risk: Prevention is Better than Cure
  15. Sometimes Mistakes are Made