Summary of Jeremy C. Miller's Warren Buffett's Ground Rules

By IRB Media

Please note: This is a companion version & not the original book.

Book Preview:#1 In 1956, Buffett began teaching an investment class at the University of Nebraska Omaha, which was attended by a few other investors who would go on to be his partners.

#2 In the long term, the market will reflect the true value of a business. This is the goal of a long-term investor, not a speculator.

#3 After graduating from college, Buffett was desperate to work for Graham's investment company, but was turned down because he was deemed overvalued. He eventually got the job after sending Graham hundreds of letters and ideas.

#4 The market is fickle, and will swing from high to low and back again in an instant. It is impossible for it to inform you of a company’s intrinsic value. You must calculate that value separately and only act when the market is favorable.

• Language: English
• Publisher: IRB Media
• Release date: Feb 10, 2022
• ISBN: 9781669346500

IRB Media

With IRB books, you can get the key takeaways and analysis of a book in 15 minutes. We read every chapter, identify the key takeaways and analyze them for your convenience.

Book preview

Insights on Jeremy C. Miller's Warren Buffetts Ground Rules

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 1

#1

In 1956, Buffett began teaching an investment class at the University of Nebraska Omaha, which was attended by a few other investors who would go on to be his partners.

#2

In the long term, the market will reflect the true value of a business. This is the goal of a long-term investor, not a speculator.

#3

After graduating from college, Buffett was desperate to work for Graham's investment company, but was turned down because he was deemed overvalued. He eventually got the job after sending Graham hundreds of letters and ideas.

#4

The market is fickle, and will swing from high to low and back again in an instant. It is impossible for it to inform you of a company’s intrinsic value. You must calculate that value separately and only act when the market is favorable.

#5

The key to long-term investing is to focus on the businesses themselves and not their stock prices, which are subject to market forces. In the long run, the market is efficient.

#6

According to Buffett, the market's mood swings can be random and unpredictable, which makes them inherently difficult to figure out. So, refrain from trying to predict the short term and instead focus on the long term.

#7

The market will drop from time to time, and while it is impossible to avoid this, you must remember that it is an inevitable part of investing. You can never let the market’s quote turn from an asset to a liability, since that would be akin to letting your emotions affect your judgement.

#8

Your market predictions should never be based on the stock market's movements, because you can never be sure if your predictions will come true.

#9

If we start depending on guesses or emotions when it comes to deciding whether or not to participate in a business where we have an edge, we'll be in trouble. We mustn't sell our interests in businesses just because they're attractively priced.

#10

The market swoons do not bother us because we understand that the availability of market quotes allows us to be buyers when others are fearful. It gives us the mental construct to endure market fluctuations.

#11

Compound interest is the eighth wonder of the world because it powers the production of wealth. It drives the exponential growth of your money.

#12

Following the 10% rule, you will be able to save