Recommended by: WiseSuit Staff

Warren Buffett, sometimes called the "Oracle of Omaha," is a genuine American folk hero, if folk heroes are allowed to build fortunes worth upward of $40 billion. He's great at homespun metaphor, but behind those catchy phrases is a reservoir of financial acumen that's generally considered the best of his generation. This is a collection of his writings.

For example, in an essay on CEO stock options, he writes, "Negotiating with one's self seldom produces a barroom brawl." This is his way of saying that an executive who can give himself compensation totally disproportionate to his performance surely will.

Another example is his now-famous line about those he competes with when making stock-market investments: "What could be more advantageous in an intellectual contest - whether it be chess, bridge, or stock selection - than to have opponents who have been taught that thinking is a waste of energy?"

And a third example, taken from the book is:

"On the other hand, working with people who cause your stomach to churn seems much like marrying for money - probably a bad idea under any circumstances, but absolute madness if you are already rich."

Lou Schuler says this:

"While Buffett has a policy of seldom commenting on stocks he owns, - he feels public pronouncements will only lead to the public's expectation of more public pronouncements, and he likes to keep his cards close to his vest - he loves to discuss the principles behind his investments. First among them is the idea that price is what you pay and value is what you get--and if you're a smart investor, the first will always be less than the second. In that sense, the value of the lessons learned from Buffett's Essays could be far greater than the book's price. "

This essay collection is from Buffett's letters to the shareholders of Berkshire Hathaway written over the past few decades. The second edition includes topics of national or international significance today, including the:

• Proliferation of stock option compensation and excessive CEO pay
• Shareholder-designated contribution program and the controversy over the abortion issue that led to its termination
• Explosion of derivative financial instruments
• Dramatic increase in foreign currency trading in the past five years along with the astonishing growth in the US trade deficit
• Management succession at Berkshire Hathaway as Mr. Buffett ages and commentary on his philanthropic thinking in giving his entire fortune to charities
• Fairness and other matters concerning taxation of corporations

About the Author:

Warren Edward Buffett, born August 30, 1930, in Omaha, Nebraska, is an American investor, businessman and philanthropist. He is regarded as one of the world's greatest stock market investors, and is the largest shareholder and CEO of Berkshire Hathaway. With an estimated net worth of around US$62 billion, he was ranked by Forbes as the richest person in the world as of February 11, 2008.

In 2006, he announced a plan to give away his fortune to charity, with 83% of it going to the Bill & Melinda Gates Foundation.

Categories:  Leadership ,  Biography,  Corporate Finance,  Personal Finance