Buffett Beyond Value: Why Warren Buffett Looks to Growth and Management When Investing


“Many books about Warren Buffett describe him as simply a ‘value’ investor. Jain gives us a clearer understanding of the techniques of the man known as ‘the world’s greatest investor’ and shows that his investment principles are consistent with many of the precepts of modern financial theory.”
BURTON MALKIEL, Professor, Economics Department, Princeton University; author of A Random Walk Down Wall Street and The Elements of Investing

“This is required reading for all Buffettologists looking for more than just sound bites and folk wisdom in their quest to peer into the mind of one of the greatest investors of all time. Read this book slowly and savor every page while sipping a Cherry Coke!”
ANDREW W. LO, Harris & Harris Group Professor, MIT Sloan School of Management

“What better way to become a successful investor than to study the teachings of Warren Buffett? And, what better way to study those teachings than to read Buffett’s forty-year writings contained in his annual reports? Prem C. Jain jump-starts those lessons by culling Buffett’s most salient investment secrets and summarizes them in a wonderful and easy-to-read book.”
HOWARD M. SCHILIT, author of Financial Shenanigans; founder, Financial Shenanigans Detection Group

“Post the 2008-2009 financial crisis, everyone from New York to New Delhi is looking for investment advice. The advice has just arrived! Prem C. Jain’s lucid, accessible encapsulation of Buffett’s investment wisdom is a page-turner—it’s full of investment nuggets and entertaining anecdotes, and yet the write-up is faithful to economic theory. Buffett’s investment thesis is now out in the open, and therefore may a thousand Buffetts bloom!”
S.P. KOTHARI, Managing Director, Blackrock; Gordon Y Billard Professor of Management, Sloan School of Management, Massachusetts Institute of Technology

PREM C. JAIN is the McDonough Professor of Accounting and Finance at the McDonough School of Business, Georgetown University, in Washington, D.C. He has previously taught at the Wharton School of the University of Pennsylvania and the Freeman School of Business at Tulane University. His research has been published in many prestigious finance and accounting journals including the Journal of Finance and the Journal of Accounting Research. Jain received a doctorate from the University of Florida and a master’s degree in applied economics from the University of Rochester. He is also a CPA in the state of Florida.


Part One Introduction and Background.

Chapter 1 The Thrill of Investing in Common Stocks.

Chapter 2 1965–2009: Lessons from Significant Events in Berkshire History.

Part Two Buffett Investing = Value + Growth.

Chapter 3 Value Investing—It's Like Buying Christmas Cards in January.

Chapter 4 Growth Investing.

Chapter 5 Intrinsic Value.

Chapter 6 Buffett Investing = Value + Growth.

Part Three Other People’s Money.

Chapter 7 Insurance—Other People’s Money.

Chapter 8 Reinsurance: More of Other People’s Money.

Chapter 9 Tax Deferment: Interest-Free Loans from the Government.

Part Four Success in Retailing, Manufacturing, and Utilities.

Chapter 10 If You Don’t Know Jewelry, Know Your Jeweler.

Chapter 11 Compete Like Mrs. B.

Chapter 12 Why Invest in Utility Companies?

Chapter 13 High Profits in Honest-to-Goodness Manufacturing Companies.

Part Five Risk, Diversification, and When to Sell.

Chapter 14 Risk and Volatility: How to Think Profitably About Them.

Chapter 15 Why Hold Cash: Liquidity Brings Opportunities.

Chapter 16 Diversification: How Many Baskets Should You Hold?

Chapter 17 When to Sell.

Part Six Market Efficiency.

Chapter 18 How Efficient Is the Stock Market?

Chapter 19 Arbitrage and Hedge Funds.

Part Seven Profitability and Accounting.

Chapter 20 M = Monopoly = Money.

Chapter 21 Who Wins in Highly Competitive Industries?

Chapter 22 Property, Plant and Equipment: Good or Bad?

Chapter 23 Key to Success: ROE and Other Ratios.

Chapter 24 Accounting Goodwill: Is It Any Good?

Part Eight Psychology.

Chapter 25 How Much Psychology Should You Know?

Chapter 26 How to Learn from Mistakes.

Part Nine Corporate Governance.

Chapter 27 Dividends: Do They Make Sense in This Day and Age?

Chapter 28 Should You Invest in Companies That Repurchase Their Own Shares?

Chapter 29 Corporate Governance: Employees, Directors, and CEOs.

Chapter 30 Large Shareholders: They Are Your Friends.

Conclusion B = Baseball = Buffett.

Appendix A Summary of the Book.


About the Author.