CREATING A PORTFOLIO LIKE WARREN BUFFETT
A High Return Investment Strategy
by Jeeva Ramaswamy
THE INVESTING GENIUS OF WARREN BUFFETT EXPLAINED
BY FUND MANAGER WHO INVESTS THE BUFFETT WAY
Jeeva Ramaswamy Introduces A High Return
Investment Strategy Based on Buffett Principles
Warren Buffett’s incredible success and the epic scope of his acquisitions can make him an intimidating mentor, but Buffett has accrued a net worth of $45 billion through timely, intelligent investing. Just because most investors can’t afford to buy companies like GEICO and See’s Candies outright doesn’t mean they can’t apply—and benefit from—the same rules and strategies that Buffett has successfully employed for decades.
In his new book, CREATING A PORTFOLIO LIKE WARREN BUFFETT: A High Return Investment Strategy, Jeeva Ramaswamy, a managing partner of an investment fund modeled after the original 1950s Buffett partnership, breaks down the rules of stock trading that made Buffett a multibillionaire. Giving readers a complete overview of Buffett’s methodologies and how to apply them, the book is a step-by-step comprehensive guide to investing and managing a successful stock portfolio. Fully delineated within three major sections of the book, Ramaswamy explains:
• Warren Buffett’s Investment Principles: These principles include a business-owner type investing approach to help make intelligent buying and selling decisions; long-term investing, which means buying stock at attractive prices, which are less than the intrinsic value of the business and holding that stock as long as the company’s fundamentals are improving; and avoiding permanent loss of capital. As Buffett always says, “Rule 1: Never lose money. Rule 2: Never forget rule number 1.”
• Stock Research Checklist: Another main task for investors involves researching the prospective company thoroughly, examining all the aspects of the business, and then deciding what to do with the stock. With 61 stock research checklist items, Ramaswamy leaves no stone unturned. He includes checklists for earnings, debt, equity, profit margin, capital investment, management, dividend, assets, inventory, share buybacks, insiders, institutional, inflation, cyclical company, turnaround, and stock price.
• Investment Management: Investors should search stock prospects in the Value Line investment survey, Magic Formula investing, Wall Street Journal, and by actually visiting the company, if a retail outlet, at the shopping mall. Be calm and make rational decisions as per the investment research strategy. Ramaswamy writes about margin of safety, where to search for stock prospects, and portfolio management.
Before any individual starts investing in the stock market, he or she should have a clear understanding of investment principles. CREATING A PORTFOLIO LIKE WARREN BUFFETT is packed with specific stock examples, real-life calculations, and expert tips. This book is the guide to harnessing the market savvy of an investing legend. Ramaswamy breaks down the rules of stock trading that made Buffett a multibillionaire so that his winning ways can be applied to building one’s own wealth. Highlighting actual trades that Buffett successfully executed, as well as Ramaswamy's own experiences using the principles established by Buffett, the book clearly explains everything you need to know to creating a winning portfolio.
ABOUT THE AUTHOR
Jeeva Ramaswamy is a managing partner of GJ Investment Funds , an investment fund modeled after the original 1950’s Buffett partnership. Since its inception in November 2008, GJ Investment Funds delivered compounded annual return of more than 72 percent (net to investors). He has been favorably profiled in International Alternative Investment Review and Hedge Fund Exchange. Prior to GJ Investment Fund, he was CEO for Miracle Software Inc., an information technology and solutions company. He holds a bachelor’s degree in Electrical Engineering from the Coimbatore Institute of Technology and is a member of the Indus Entrepreneurs (TiE) Association.
“Jeeva Ramaswamy distills Warren Buffett’s ideas into various useful and highly practical checklists that should be of immense help to all investors, big and small.”
-Prem C. Jain, author of Buffett Beyond Value
“CREATING A PORTFOLIO LIKE WARREN BUFFETT is a thoughtful guide to building permanent wealth in the stock market. It is a valuable addition to any dedicated investor’s library.”
-Janet Lowe, author and speaker
“This book offers a thoughtful overview of the approach and techniques that helped Warren Buffett become the greatest investor in the world.
A very worthwhile complement to any serious value investor’s library.”
-Sham Gad, author of The Business of Value Investing