Description
Book SynopsisTable of ContentsIntroduction ix
1 My Approach to Investing 1
2 The Brief Story of My Life 17
3 IBM 31
Successful investing is about predicting the future more accurately than the majority of other investors; we predict a change in IBM’s cost structure
4 Interstate Bakeries 49
Successful investing often is heavily dependent on the capabilities and incentives of corporate leadership
5 U.S. Home Corporation 63
Investors can become frustrated when their swans are priced as if they are ugly ducks
6 Centex Corporation 67
Large profits can be earned by successfully predicting a major positive change in the fundamentals of a company or an industry
7 Union Pacific (Railroad) 79
Investors often do not adequately differentiate between shortterm discrete problems and long-term systemic weaknesses
8 American International Group (AIG) 91
I went to bed with Miss America and woke up with a witch; this can happen to even the most careful of investors
9 Lowe’s 101
Using common-sense logic, we conclude there is a high probability that the U.S. housing market will improve markedly in the near future; investing is logical and probabilistic
10 Whirlpool Corporation 113
Extraordinary patience is required when a deeply undervalued stock continually remains deeply undervalued
11 Boeing 137
Opportunities can occur when great companies develop temporary problems
12 Southwest Airlines 157
When tight markets lead to sharply higher prices for goods or services, earnings and share prices can become buoyant, even for normally unattractive businesses
13 Goldman Sachs 169
Large profits can be earned when perceptions temporarily differ from realities
14 General Motors 187
One must rely on judgment and a sixth sense when the fundamentals of a company become unclear
15 A Letter to Jack Elgart 221
A letter that summarizes my approach to investing and that includes a number of do’s and don’ts I found useful in my career
About the Author 233
Index 235
