The Four Filters Invention Of Warren Buffett And Charlie Munger

"The Four Filters Invention of Warren Buffett and Charlie Munger" examines each of the steps they perform in framing and making an investment decision. The author believes that Buffett and Munger expanded the field of "Behavioral Finance" by using this thoughtful and effective process. The genius of Buffett and Munger's four filters process was to capture all the important stakeholders in their decision making. Imagine... Products, Enduring Customers, Managers, and Margin-of-Safety... all in one mixed "qual + quant" formula. This second edition contains additional examples in this amazing process. This edition also contains the author's look into their 1988 valuation of Coca-Cola. Each chapter has additional specific examples. The author also discusses additional insights he has learned in the past five years since the first edition was released.

This book is a quick guide to understanding the four investing filters of Warren Buffett and Charlie Munger. It is a shorter version of his previous book and is designed to improve your investment thinking. How do you set a price for your stock purchases? In Chapter 4, the author estimates an intrinsic value (of Apple stock). First, start by trying to understand the qualities of a first-class business. The four filters will help you optimize your decision making. Warren Buffett said it best: "An investor cannot obtain superior profits from stocks by simply committing to a specific investment category or style. He or she can earn them only by carefully evaluating facts and continuously exercising discipline."

This book offers 30 sample "intrinsic value per share" business valuations in the style that Warren Buffett and Charlie Munger may use. In each case the author tried to simulate an approach that they would take to valuing a business, based on what they have written and talked about. However, all of the growth assumptions used are the author's own. No consultation nor endorsement was sought with Mr. Buffett or his business partner Mr. Munger. The examples given are chosen for educational and illustrative purposes only. The valuation cases are estimations written in a style that emphasizes a focus on free cash flow and the number of shares outstanding. Readers are also repeatedly encouraged to think about the business' competitive position. In reality, these businesses may outperform or they may underperform any of the author's projections.

From the author of ""The Four Filters Invention of Warren Buffett & Charlie Munger,"" Bud Labitan offers an illustrated look at sample business stock valuations. ""Illustrated Valuations"" shows images to help the reader think about their calculations and estimations. Using software that Labitan built called StocksCalc, he illustrates the power of a bargain purchase in raising your effective annual returns. The author explains the steps needed to think about both good qualitative and quantitative decisions. The full business qualities and your own growth assumptions must be carefully considered. Illustrated Valuations includes a nice section on investing best practices.

This book offers 5 sample "intrinsic value per share" business valuation estimations that were first performed in 2010. Done in a style that Warren Buffett and Charlie Munger may use, these valuations are based on free cash flows each business produced. In each case presented, the author, Bud Labitan, simulated an approach that Buffett and Munger might take to valuing a business, based on what they have written and talked about. However, all of the growth assumptions used are Labitan's own. No consultation or endorsement was sought with Mr. Buffett or Mr. Munger. How is this portfolio of five businesses doing after five years? If the reader had invested an equal amount of money in all five businesses in 2010, the average annual return so far would be 42%.

For years, we have wondered how Warren Buffett valued Coca-Cola, (KO), stock at such a deep bargain in 1988. This book describes a simple two stage discounted cash flow model that delivers a close approximation. This exercise is our quantitative estimation of Coca Cola's Intrinsic Value Per Share in 1988. First, we describe our 2-stage "discounted cash flow" valuation model. Our estimating model is strict. It assumes a business will only "live" for 20 years. Within the model, we apply compounding growth to the first 10 years. Then, we assume a lower growth rate for years 11 till the end of year 20. Since intrinsic value is a highly subjective figure, readers can adjust their model to the quality of the business they wish to value. This book also describes the Warren Buffett secret of "Yield On Cost" when investing in a high quality business bargain.

This book describes the enduring competitive advantages of profitable Berkshire Hathaway businesses. MOATS: The Competitive Advantages of Buffett and Munger Businesses explains the competitive nature of 70 selected businesses purchased by Warren Buffett and Charlie Munger for Berkshire Hathaway Incorporated. This is a very useful resource for investors, managers, students of business around the world. It also looks at the sustainability of these competitive advantages in each of the 70 chapters. The moat is the protective barrier around each business' economic castle. Some of these businesses have double and triple moats of protection.

'Price To Value' is about Intelligent Speculation. It is about decision framing and using the amazing "Decision Filters" of Charlie Munger and Warren Buffett. These 'filters' offer us the opportunity to enhance our decision framing and decision making skills in both investing and speculation. How can we use this framework to improve our speculative decision making? We can use it to help us separate fact from fiction. Readers will benefit from this book if it stimulates better thinking into the most important factors crucial to decision making. These decision framing ideas can be applied across different asset classes. First, the book presents the four investing decision filters in simplified terms. Then, it extends these ideas by looking into the intelligent speculation ideal described by Benjamin Graham in his tenth lecture of 1946.