The Warren Buffett Way was written by Robert Hagstrom and published by Wiley Finance. The book was written to provide insight into the financial and investment philosophies of one of the most successful investors of our time. It is largely successful in this task, explaining what qualities Buffett looks for in companies in which he invests.
Robert Hagstrom describes Warren Buffett’s investment principles in the terms of four tenets. Buffett seeks out companies that meet his quality criteria in these four categories:
- Business Tenets. These are the basic characteristics of the business itself.
- Management Tenets. These are qualities that senior managers of the company must possess.
- Financial Tenets. The company must satisfy certain financial criteria.
- Value Tenets. The purchase price of the company must be fairly or undervalued.