Title: Warren Buffett – Der Jahrhundertkapitalist

Author: Gisela Baur

Pages: 317

Genre: Finance & History

Dear reader,

I am pretty sure that there are quite a number of different books about Warren Buffett in circulation. I have once read a book about a family member of his that wrote some of the principles that he/his family give one another and stick to. However, what I really enjoyed from this book is that you feel like you are walking in a timeline of his journey and not only seeing him growing up, but also the world in which he is growing up.

That makes it a much more compelling read, since it combines his biography and history (mostly US) like hand in glove.

The book is broken down into the following chapters:

Preface (pg. 7)

Chapter 1 – Roots – From Wild West to Midwest until 1929 (pg. 11)

• This chapter deals with the early history of Warren Buffett’s family tree (grandparents and parents), how they lived in the early America and which traits and values they grew up with.
• Some of these traits and values were still applied by Warren throughout his business career.

Chapter 2 – Turbulent Times – A terribly nice childhood 1929 – 1943 (pg. 35)

• Warren’s father has taken on a career as a broker even though America and other countries were going through a change from the Roaring Twenties to The Great Depression.
• Early in Warren’s childhood, the siblings have a difficult relationship with their mother.
• The New Deal is introduced in America and Warren’s father Howard Buffett decides to enter politics.
• As soon as Warren learns to read he takes every book he can find and consumes knowledge. Thanks to his photographic brain, he will remember most of what he reads.
• When he stumbles upon a book that gives the reader 1000 business ideas, his interest in doing business and earning cash is awoken.
• He also spends a lot of time at his father’s brokerage firm, which had started doing better and attracted more clients.
• At the early age of 10 he buys his and his sister’s first shares in a company, only for them to go down in value in a short time later. When they recover to their previous entry prices he exits the market, only to find that they have increased in value by even more.

Chapter 3 – Rollercoaster – Youth Rebellion 1943 – 1950 (pg. 61)

• The Buffett’s have moved to be closer to Washington for Howard’s role in parliament. Warren is deeply upset by their move since everything he knew is now gone and he didn’t wish for this move to a new place. His marks also reflect this unhappiness, because he starts getting C’s /D’s.
• He finds work by becoming a paper boy. To increase his wages he takes on more routes.
• He finds the book “How to Win Friends and Influence People” in his grandfather’s library and studies it like the Bible, since he never had good luck in making friends easily.
• Warren’s life turns around and he scores in the top 20 of his school. His father arranges for him to attend the Wharton Business School.
• After World War II has come to an end, the US is the primary force in the New World Order, since the largest share of GDP and Gold reserves are here. The other world economies need to rebuild theirs from the ashes of the war destruction.
• Howard Buffett loses in a crucial vote and consequently returns to his brokerage in Omaha. Warren switches from Wharton to Nebraska to continue his education there instead. After his certification he tries to enter Harvard, but fails at the interview stage.

Chapter 4 – Start – Two Angels for Warren 1950 – 1953 (pg. 81)

• Warren was denied from Harvard and in his early twenties. He has no clear idea what he wants to do with his life and he needs a plan. His sisters are either studying of getting married and ready for their future lives.
• He notes that at the University of Columbia two familiar names will be lecturers for a book he recently found in the library: Security Analysis. He writes a letter to Dodd and is taken onto the course.
• Warren becomes a top student of Dodd’s and they even start a friendship outside the lectures. However, Warren understands that Benjamin Graham is the bigger of the two with their book and starts following the investments Graham makes in his private investment company. One of the company’s, Geico (insurance), sparks his interest and he soon learns to love the concept of taking money (premiums) to invest it for profit before any claims become due.
• Warren gets his diploma and now wants to get a job at Benjamin’s brokerage firm, but is denied for a particular reason, which Warren accepts for the time. He would eventually apply again and then be accepted to the company.

Chapter 5 – The early years – Fanclubs and Cigarette stumps 1953 – 1957 (pg. 105)

• Warren is working for Graham for a few years and even sometimes has to travel to New York for some further investigations.
• Benjamin is considering retirement and offers Buffett to take over together with his partner’s son. Buffett refuses and instead starts individual partnerships back home in his hometown.
• A few years before, he has conquered the heart of his soon-to-be wife and they marry.

Chapter 6 – New Partners – The first couple Millions 1957 – 1968 (pg. 129)

Chapter 7 – Collector – A growing empire 1968 – 1971 (pg. 159)

Chapter 8 – New Dimensions – Money and Power 1971 – 1989 (pg. 179)

Chapter 9 – Milestones – The hero of Omaha 1989 – 1991 (pg. 203)

Chapter 10 – Tech, Tech, Tech – From Hero to Loser 1991 – 2000 (pg. 223)

Chapter 11 – Time of crises – Terror, Betrayal and Collapse 2000 – 2008 (pg. 241)

Chapter 12 – Redistribution – Taking and giving billions 2008 – 2016 (pg. 265)

Chapter 13 – The End of an Era – Time of Change 2016 – present (pg. 283)

I will not try to recall everything important from every chapter, but I hope to have given you some greater insight into the life Warren grew up in and how he developed from the little Warren, to the one we came to love in the investment world.

Summary:

A great book telling the story of who Warren was in every stage of his life, what challenges he faced (like all of us do) and how he still made a success of his life. All this in parallel to the history of the US from the 1929s to the present. You will see him quite differently than merely who you know him to be today and you also see that he made mistakes throughout his investment career.

The book receives a rating of 4.75/5.

Happy reading!!