Meanwhile, he is working as a stockbroker. Buffett takes a Dale Carnegie public speaking course. Using what he learned, he begins teaching a night class at the University of Nebraska, "Investment Principles. Warren returns home and begins dating Susan Thompson.
In April, Warren and Susie get married. The same year, the Buffett family returns home to Omaha. He's now running his own partnership, and will never again work for anyone else. Over the course of the year, he opens two additional partnerships, eventually bringing the number under his management to three.
Years later, they will all be consolidated into one. He is now managing five investment partnerships from his home. The two get along immediately. Eventually, 11 doctors agree to invest. During the trip, he picks up a few partners and several hundred thousand dollars. Warren and Susie personally own over one million of the assets. Buffett merges all of the partnerships into one entity known simply as Buffett Partnerships, Ltd. In the same year, Buffett consults Munger on Dempster, the windmill manufacturing company. Munger recommends Harry Bottle to Warren, a move that would turn out to be very profitable.
Warren discovers a textile manufacturing firm, Berkshire Hathaway , that is selling for under eight dollars per share. He begins to buy the stock. While the world is selling the stock, Buffett begins to buy shares en masse. Buffett begins to purchase shares in Walt Disney Co. In October, Warren writes to his partners and tells them he finds no bargains in the roaring stock market of the '60s.
He briefly considers leaving investing and pursuing other interests. Among the assets paid out are shares of Berkshire Hathaway. Praise for Investing Between the Lines "Rittenhouse is still on the side of the angels. Investing Between the Lines is destined to become a classic in showing how candor is the language of trust and how trust is the basis on which companies ultimately succeed.
In it, L. Rittenhouse makes a compelling case that CEOs' words matter too. Rittenhouse reports on over a decade of research analyzing executive communications and finds leadership clues that reveal the true values of a corporate culture which, in turn, determine performance. Get A Copy. Hardcover , pages. More Details Other Editions 4. Friend Reviews.
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The essential guide to making smarter decisions by decoding CEO Communications. Recommended reading in Warren Buffet's Shareholder Letter. Editorial Reviews. Review. "On Warren Buffett's Recommended Reading List" -- Berkshire Hathaway Annual Shareholder Letter, ; " investors ought to pay.
I really wanted to like this book. I think not enough analysts actually read an annual report these days. I thought this book would give me some interesting insights into CEO communication. I was somewhat disappointed. The book does not flow nicely and the chapters are not well summed up at the end. The book is almost a marketing tool for the Rittenhouse Ratings. A summary would have probably been time better spent.
I could not find a summary so have hung the book to keep as a reference. It is certainly not a useless book but I just think it could have been so much to the point and relevant. A disappointment.
http://nttsystem.xsrv.jp/libraries/74/lyv-handy-ruckelt.php Apr 18, Tirath rated it liked it. Insightful book for investors who often forget the importance of shareholder letters. Sadly, the book is more about his company's marketing than about real utility. It's a good book to browse through and the idea is quite good. If only someone could find out how many times the word "Rittenhouse" had been mentioned in the book. Apr 09, Darko Doko rated it did not like it Shelves: business. Bought book because of Buffetts recommendation, but just did not bought theory that you can forecast future of a company from style of annual letters.
Surely it is among important things, but it is faaar from the only thing that influences how a company is going ti perform or its share price. Aug 21, InvestingByTheBooks. On the final interview with the department heads of the bank where I was shooting for a position as an assistant portfolio manager 15 years ago, I was asked what I first look for in an annual report. It still is. Being a CEO letter junkie, the latest book from L. Rittenhouse, really strikes a nerve. Reading the book is a constant battle against a heavy dose of confirmatory bias.
Central to the book, and the decade-long effort behind the Rittenhouse Rankings, is the Mungeresque belief that you need several mental models to work out solutions to problems.
The Rittenhouse Ranking model centers around the seven different areas empirically deemed most important in a quest to analyze corporate communications. With a database of over painstakingly coded annual reports over the last decade, the Rittenhouse Rankings are alone in its kind. Investing between the Lines brings this effort to the public for the first time. He is a long-term investor that would rather hold forever than sell as long as a business maintains its competitive advantage. Even Buffett gets it wrong sometimes.
When you make a mistake, learn from it and cut your losses. Selling businesses in decline is a form of risk management.
Modern portfolio theory argues that stock price volatility is a proxy for risk. Wide diversification is preferred over concentrated investing. Buffett has invested in a far more concentrated manner.
Buffett places an emphasis on knowing what he is doing by staying in his circle of competence. Rather than invest broadly in businesses he is less confident in, Buffett runs a focused portfolio invested in his highest conviction ideas, as the two quotes below show:. Buffett does not use diversification to mitigate risk. Instead, he reduces risk by examining businesses closely and understanding their competitive advantage.
A rising tide lifts all boats. In bull markets, investors who take on more risk by using leverage will look like geniuses. When sentiment changes and a recession occurs, these leveraged portfolios will not look so smart. Warren Buffett does use some leverage in his investing contrary to quotes in this article , but he only uses non-callable, ultra-low interest leverage.
He also does not leverage himself excessively. Avoiding excess leverage and being cautious with your investments takes will power and maturity.