Wednesday, 22nd July 2009

“The Snowball: Warren Buffett and the Business of Life” by Alice Schroeder

Written by George Traganidas Topics: Books, Habits, Personal Finance, Stock Investing

Snowball, Warren Buffett

This is a great book for anyone who is interested to invest in the stock market and run a business. The book describes the life of Warren Buffett from the day he was born up to 2008. The lessons are drawn from both his personal and his professional life.

Warren got involved in a very young age in the process of making money and managing other people’s money. When he was a kid he took his sister’s money to invest in a stock. This stock went down and everyday his sister would ask him why the stock is down. Warren did not like that experience at all and from that day on he did not want to manage other’s people money unless he knew he could do a great job. This gave birth to his first rule of investment “Never lose the money.”

You can find a lot of details on his management style in the book and how he pushes his people to get the best out of them. He believes that a smart person can do a great job and lets them do their job without him interfering. He is very good in showering his employees with praise and then at the same time giving them more tasks to do.

In the last few chapters of the book, you can see his ideas on philanthropy and inherited wealth. He is not a big fun of people leaving all their possessions to the children because that stops them from growing and achieving their own great things. He gave away the majority of his wealth to the Bill and Melinda Foundation.

I strongly recommend that you read the book and get a glimpse on how the greatest investor of all times created his fortune following simple rules and a lot of focus.

Follow the practical way,

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