100 Stocks That a Young Warren Buffett Might Buy
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Warren Buffett
Stock Market
Value Investing
Charlie Munger
Investment
Mentorship
Rags to Riches
Business Success
Genius Billionaire
Financial Growth
Company Analysis
Financial Performance Metrics
Portfolio Management
Business
Investing
Investment Strategies
About this ebook
"Success in [stock] investing doesn't correlate with IQ ... what you need is the temperament to control the urges that get other people into trouble in investing." – Warren Buffett
In 100 Stocks that a Young Warren Buffett Might Buy, author James Pattersenn reveals how Warren Buffett and his partner Charlie Munger earned a mind-blowing 1156% return on investment with stocks and led Buffett to be one of the richest men in the world with a net worth of more than $109 billion.
You will learn the most important stock buying guidelines that Buffett and Munger use to pick stocks that will outperform the stock market by large margins and build wealth incrementally over time. Perhaps most valuable to today's stock investors is the application of the Buffett – Munger model to build a profitable stock portfolio that performs better than the stock market in both bull markets and in times of market depression.
In this powerful stock investing guide, you will learn:
- The specific criteria for picking Buffett-and-Munger type stocks via value investing
- 4 key principles that Buffett and Munger use for stock valuation and stock selection
- The importance of concentrating your stock portfolio
- How to use free online stock screeners to locate and identify Buffett-and-Munger type stocks
- The importance of the margin of safety
- How to find undervalued stocks and buy growth stocks near the bottom of downtrends
- The power of dividend stocks to maximize portfolio growth
- How to use free powerful online tools to help you to become a better investor
- How to incorporate memorable Warren Buffett quotes to your stock trading information base
- 100 wonderful companies that a young Buffett or Munger might buy in this technology-driven age if they invested as they do today
Join the author as he applies Buffett's 60 years of incredible stock market expertise in a fascinating (and potentially extremely profitable) experiment, where 100 of today's best companies and technology stocks are examined for profit growth and stock portfolio inclusion.
Buy Now!
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100 Stocks That a Young Warren Buffett Might Buy - James Pattersenn
100 STOCKS THAT A YOUNG WARREN BUFFETT MIGHT BUY
IF HE INVESTED LIKE HE DOES TODAY
JAMES PATTERSENN JR.
Copyright © 2019 by James Pattersenn Jr. Printed and bound in the United States of America.
All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system without written permission from the author or publisher except in the case of brief quotations embodied in critical articles and reviews.
This book was published for educational purposes, and it’s not intended to provide specific personalized advice. It’s sold with the understanding that the author or publisher is not engaged in rendering legal, accounting, investment or other professional services. Investing in stocks and the stock market involves varying degrees of risk, and there’s no assurance that a specific stock, investment principle or investment strategy will be profitable for an individual, group or organization. All information contained in this book was gathered from sources believed to be reliable, but neither the author nor the publisher can accept responsibility for its accuracy.
The author or publisher specifically denies any responsibility for liability, loss, or risk, professional or otherwise, which is incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this book.
Publisher’s Cataloging-in-Publication Data
Names: Pattersenn, James, Jr., 1966- | Patterson, James Wade, Jr., 1966-
Title: 100 stocks that a young Warren Buffett might buy: if he invested like he does today/ James Pattersenn, Jr.
Description: Lancaster, SC: Trilogy Publishing Group, 2019. | Includes 101 tables and index. | Summary: Examines the investment style of Warren Buffett and the influence upon him by his investment partner, Charlie Munger. Provides one hundred stocks the author believes that a young Buffett or Munger would buy based on their investment methodology today.
Identifiers: LCCN 2018913503 | ISBN 9780989546430 (softcover)
Subjects: LCSH: Buffett, Warren, 1930- |Munger, Charles T., 1924- | Investments—United States. | Stocks—United States. | Investment analysis. | BISAC: BUSINESS & ECONOMICS / Investments & Securities / Analysis & Trading Strategies.
Classification: LCC HG4521.P38 A16 2019 | DDC 332.6--dc23
LC record available at https://lccn.loc.gov/2018913503
Table of Contents
100 STOCKS THAT A YOUNG WARREN BUFFETT MIGHT BUY
PART ONE
INTRODUCTION
WARREN BUFFETT
CHARLIE MUNGER
THE EVOLUTION OF BUFFETT AND MUNGER
PART TWO
BEYOND VALUE INVESTING
BUILDING WEALTH WITH GROWTH STOCKS
SCREENING FOR BUFFETT-AND-MUNGER TYPE STOCKS
MARGIN OF SAFETY
BEFORE YOU BUY A STOCK
CONCENTRATE YOUR PORTFOLIO
GURUFOCUS.COM
PART THREE
THE WISH LIST
THE CRITERIA FOR THE 100 STOCKS SELECTED
THE 100 STOCK PICKS
DEAR READER
ACKNOWLEDGEMENTS
PART ONE
THE SOLID FOUNDATION
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
– Warren Buffett
INTRODUCTION
What investor in his or her right mind wouldn’t want to have the ability to pick stocks the way Warren Buffett does? Or his business partner, Charlie Munger? The teaming of these two men has created the most successful investment partnership in history. Long after Buffett and Munger are gone, they will be remembered, studied, and admired. To prove this point, I wanted to mention that today; February 21, 2019, the Class A shares of Berkshire Hathaway had a closing price on the U.S. market of $307,925 per share. That’s not a misprint! $307,925 per share! You and I would need almost a million dollars to buy just three shares of Berkshire’s Class A stock. When Buffett took over Berkshire Hathaway in 1964, Berkshire’s Class A stock traded at $19 per share.
There have been many excellent books written about Warren Buffett and his investment principles and strategies. I realized that it would be pointless for me to attempt to write another. It would certainly fall far short of the mark when compared to the excellent books already available. However, since I already had what seemed like many books worth of research materials, I thought to myself that it would be a waste not to put some of that research to use. I wanted to do so, naturally, in a manner that would be beneficial to other investors (and especially to admirers of Warren Buffett and Charlie Munger). In addition, I already had in my possession financial data on a few thousand companies. I believed strongly that many of these would be just the types of businesses that a young Warren Buffett or Charlie Munger might buy, if they knew then what they know now about how to identify high-quality businesses like they now seek to buy or already own.
I also realized that a younger Buffett or a younger Munger would probably prefer to invest in – or own – small-to-mid-sized companies that had yet to be discovered by large institutional investors (and that would have few, if any, analysts covering their every move).
A lack of coverage or interest would allow Buffett and Munger to buy into these smaller businesses at relatively cheap prices since they had yet to be recognized by the market. For most small or individual investors, seeking out small-to-mid-sized businesses that have yet to be recognized by the market is probably the most intelligent way to invest. This is especially true, if we want to outperform the market over the long-term. Buffett and Munger would ensure, of course, that these businesses displayed potential for long-term future growth.
It dawned on me that I had never came across a book, specifically imagining a younger Buffett or Munger and what stocks they might buy. What stocks would a young Buffett or Munger purchase, if they invested like they do today? That question is precisely why this book came into existence. A more fitting or proper title for this book would be 100 Stocks That a Young Warren Buffett or Young Charlie Munger Might Buy, but that’s just too darn long!
WARREN BUFFETT
It is not uncommon for a superstar athlete or a box-office-smashing movie star to become a household name. It is extremely uncommon for an allocator of capital to accomplish such a feat. Warren Buffett is just the kind of uncommon individual to do just that. He is a household name and is greatly admired by people throughout the world. It’s not an exaggeration to put him in the same category as Tom Hanks or Rafael Nadal, when it comes to his level of fame.
Buffett has been branded The Sage of Omaha
and The World’s Greatest Investor.
He is a philanthropist, the Chairman and CEO of Berkshire Hathaway, and considered to be one of the most respected business leaders in the world. This global acclaim is not due solely to his wealth but also to his great integrity and profound humility, in both business and life.
Warren Buffett was born on August 30, 1930, in Omaha, Nebraska. Even at an early age, Buffett displayed a great interest in business and investing. As a child, he possessed an entrepreneur spirit that was uncanny in such a young person. He sold drink bottles, chewing gum, and golf balls. He invested in pinball machines! At the age of eleven, Buffett performed his first stock purchase, buying a few shares in Cities Service Preferred
(a public utility holding company in Bartlesville, Oklahoma) for himself and one of his sisters. While in high school, he bought a forty-acre farm with $1200 of his savings.
After graduating from high school, Buffett entered the Wharton School, the business school of the University of Pennsylvania. He studied there for two years before transferring to the University of Nebraska. He graduated with a Bachelor of Science in Business Administration at the age of nineteen. After being rejected for admission to Harvard Business School (perhaps on the basis that they felt that he was too young), Buffett applied to the Columbia Business School at Columbia University. He earned a Master of Science in Economics from there in 1951. More importantly, it was at Columbia that he would gain the opportunity to study under the "Father of Value Investing", Benjamin Graham, who would become a mentor and friend to Buffett. The teachings of Graham would impact Buffett in ways that would change him forever. They would eventually lead Buffett on a