The Four Filters Invention of Warren Buffett and Charlie Munger examines each of the steps they perform in framing and making investment decisions. The author believes that Buffett and Munger expanded the field of "behavioral finance" by using this thoughtful and effective process. The genius of Buffett and Munger's four-filters process was to capture all the important stakeholders in their decision making. Imagine: products, enduring customers, managers, and margin of safety...all in one mixed "qual + quant" formula. This second edition contains additional examples in this amazing process. This edition also contains the author's look into their 1988 valuation of Coca-Cola. Each chapter has additional specific examples. The author also discusses additional insights he has learned in the past five years since the first edition was released.
©2014 Cesar M. Labitan, Jr. (P)2015 Cesar M. Labitan, Jr.
The discussions of Kraft and Coca-Cola, in which the author crunches numbers alongside a qualitative discussion, were very instructive. These discussions were a small portion of the book. Too much of the book was mini 5-minute overviews of Buffett bought a nuts-and-bolts business for cheap and this is a list of the product line.
"A stunning performance."
I would recommend to anyone who is interested seriously about investing the way I prefer and think is the best one.
I do not rather compare. But it is very good book with a lot of insights and examples that help anyone interested into focused investing.
Yes, I did.
I am pretty impressed by the way how the author wrote the book. Very easy to understand and learn from it.
A great job Bud.
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