Buffett Beyond Value: Why Warren Buffett Looks to Growth and Management When Investing

Chapter 1. The Thrill of Investing in Common Stocks

It's not that I want money. It's the fun of making money and watching it grow.^[5]

—Warren Buffett

Warren Buffett has often mentioned that he enjoys running Berkshire Hathaway and has fun making money. I assume that you too want to earn high rates of return on your investments while having fun doing it. It is not difficult to do if you master certain principles that Buffett follows. You play baseball, golf, bridge, or the stock market because it is enjoyable. But you enjoy the game even more when you defeat the opponent, especially when you beat a seemingly superior player. Can you win in the game of investing? Yes, you can, so long as you are willing put some effort into it. And not only can you win; the thrill of the game arises because you can win often. You have weak opponents: "Mr. Market," who suffers from up-and-down moods, and professional money managers, who can be outperformed just as easily.^[6] This game is not as difficult as most people think. It is as much fun as a treasure hunt. Berkshire Hathaway is just one of the treasures I have discovered. This introductory chapter will convince you that the rewards from becoming a better investor are enormous. Later in the book, I explain Buffett's principles and why they work, so that you may use them to earn those rewards by investing in the stock market.

How a 1 Percent Advantage Becomes a 100 Percent Gain

Only one in five actively managed mutual funds beats the Standard & Poor's ...