In the third edition of this international best seller, Lawrence Cunningham brings you the latest wisdom from Warren Buffetts annual letters to Berkshire Hathaway shareholders. New material addresses:
- the financial crisis and its continuing implications for investors, managers and society;
- the housing bubble at the bottom of that crisis;
- the debt and derivatives excesses that fueled the crisis and how to deal with them;
- controlling risk and protecting reputation in corporate governance;
- Berkshires acquisition and operation of Burlington Northern Santa Fe;
- the role of oversight in heavily regulated industries;
- investment possibilities today; and
- weaknesses of popular option valuation models.
Some other material has been rearranged to deepen the themes and lessons that the collection has always produced:
- Buffetts “owner-related business principles” are in the prologue as a separate subject and
- valuation and accounting topics are spread over four instead of two sections and reordered to sharpen their payoff.