Sách The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy

Product Description:

This text encapsulates the author's ability to discover investment trends, while clearly introducing them to the lay reader. By controversially debunking the conventional investment routes, Hagstrom uses research to identify an approach that goes against the grain of industry biases and tackles the status quo, overriding the long-term performance of active investing and indexes. The solution to mediocre returns, as he sees it, is in the practice of focus investing - a method that calls for the long-term optimisation of capital by concentrating on select businesses. Hagstrom shows readers how to identify these particular companies and why this method is most rewarding. He also outlines the strategies and philosophies of focus investing in detail, and shows readers how to implement them.


Amazon.com Review:

It's no secret that most mutual funds fail to beat the performance of the S&P 500. And if the pros can't beat the averages, it's not unreasonable to assume that most individual investors can't, either. Why? According to Robert Hagstrom, author of The Warren Buffett Portfolio, a big reason is the industry's emphasis on diversification. In the interest of minimizing risk, many investors have "become intellectually numb to its inevitable consequence: mediocre results." As a result, they wind up owning too many stocks and churn their portfolios unnecessarily (for example, the average mutual fund holds 100 stocks and turns over 80 percent of its portfolio annually). In The Warren Buffett Portfolio, Hagstrom shows how Buffett and others use the idea of focus investing to organize winning portfolios.

Unlike Hagstrom's first book, The Warren Buffett Way, which describes how the world's greatest investor selects individual companies, this book looks at the mathematics, the psychology, and the mental models necessary to build a successful portfolio. The basic ideas: Pick no more than 10 to 15 companies with good track records and high probabilities of future success; plan to hang onto them for at least five years; and ignore predictions and the sometimes terrifying swings in market behavior. It's hard to argue with Hagstrom's approach, especially when he practices what he preaches. His fund, the Legg Mason Focus Trust, has 15 stocks, an annual turnover rate of 9 percent, and percentage annual returns in the mid-30s. For thoughtful investors and devotees of Warren Buffett, who are looking for more than the next hot stock tip, The Warren Buffett Portfolio is well-written guide. Recommended. --Harry C. Edwards