For those who are willing to do the work, Buffett, Munger Marathon Investing provides a solid foundation for self-directed investing.
Jack Burrow’s Buffett, Munger Marathon Investing is a crash course in investment basics, inspired by Warren Buffett’s investment philosophy.
A practicing orthodontist and hedge fund manager with thirty-five years of investing experience, Burrow wrote this book to help dental students and other professionals with no investment background “take control” of their financial futures. His model for investing is the team of Warren Buffett and Charlie Munger, both of whom he quotes extensively throughout the book.
Buffett, Munger Marathon Investing offers an introduction to investment objectives and goals, discusses compounding interest, and covers concepts such as risk, value versus price, and diversification, while also presenting a good overview of corporate financial statements.
This content is not unlike other investment books; the primary difference is the author’s reliance on the Buffett-Munger methodology, which involves investing for the long term in a few select companies. In this regard, Burrow includes a worthwhile case study of how a specific company, IBM, was chosen by Buffett as a suitable stock investment.
The amount of detail in this case study is impressive; the author walks through a comprehensive examination of IBM’s management, business model, and financial statements, demonstrating the kind of study required in assessing investment quality. Also included in the case study is a very helpful ten-point checklist developed by Burrow for evaluating a company as a potential investment.
While the book is quite detailed, most of the chapters are relatively short and written in an engaging informal style. There is an occasional stumble when it comes to grammar, and the chapters don’t always flow smoothly from one to another. Still, Burrow covers a lot of ground and is careful to explain financial terms clearly. He supports the principles he discusses with relevant, practical examples.
The author makes it plain that his intent is simply to provide an introduction to the topic of investing in the style of Warren Buffett. Even so, some of the text may be confusing and possibly overwhelming to investment novices, especially the discussion of such concepts as the “Efficient Market Hypothesis” and the “Margin of Safety.” This is why Burrow correctly urges the interested investor to do far more independent research to become adept at putting these principles into practice. He includes a section on books, podcasts, and seminars as sources for further study.
Jack Burrow’s enthusiasm for the manner in which Buffett and Munger make investment decisions pervades Buffett, Munger Marathon Investing. In fact, the book is interesting as a description of the team’s investment philosophy, not just as a how-to for prudent investing.
Burrow acknowledges that in-depth research into companies for investment purposes may not be for everyone. “If you find these concepts too hard just buy a low-fee Index Fund,” he advises. But for those who are willing to do the work, Buffett, Munger Marathon Investing provides a solid foundation for self-directed investing.
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