Foreword to the First Edition ix Foreword to the Second Edition xv Foreword to the Third Edition xvii Preface xxvii Chapter One World's Greatest Investor 1 Understanding Patterns 3 The Making of an Entrepreneur 4 Buffett Limited Partnership 16 Berkshire Hathaway: Compounding Conglomerate 20 Chapter Two The Education of Warren Buffett 25 Howard Homan Buffett: Earliest Influence 26 Benjamin Graham: Developing an Investment Methodology 33 Philip Fisher: Discerning a Good Business 41 Charlie Munger: An Intellectual Perspective 50 Chapter Three Business- Driven Investing 65 Business Tenets 68 Management Tenets 71 Financial Tenets 79 Value Tenets 85 An Intelligent Investor 91 Chapter Four Common Stock Purchases 93 The Washington Post Company 96 GEICO Corporation 107 Capital Cities/ABC 120 The Coca- Cola Company 130 Apple, Inc. 140 The Value of Retained Earnings 159 Chapter Five Managing a Portfolio of Businesses 163 Portfolio Management Today: A Choice of Two 164 A Third Choice: Focus Investing 166 The Superinvestors of Buffettville 170 Three Thousand Focus Investors 181 A Better Way to Measure Performance 185 High Active- Share Investing 200 Chapter Six It's Not That Active Management Doesn't Work 203 High Priests of Modern Finance 204 Efficient Market Hypothesis 218 Investment and Speculation: Understanding the Difference 225 Investing in a Parallel Universe 230 Chapter Seven Money Mind 235 Sportsman, Teacher, Artist 238 Berkshire Hathaway: An American Institution 245 Appendix A Berkshire's Performance versus S&P 500 Index (1965-2022) 251 Appendix B Berkshire's Common Stock Portfolios (1977-2021) 253 Notes 279 Acknowledgments 293 About the Author 297 Index 299