Buffett's Tips - John M Longo

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Biographie:

JOHN M. LONGO is a Professor of Professional Practice in the Finance and Economics Department at the Business School of Rutgers University. He has also been visiting professor of finance at EMBA-Global Asia-the joint Executive MBA program of Columbia Business School, London Business School, and The University of Hong Kong. He has more than 25 years of professional investment experience and is currently serving as Chief Investment Officer of Beacon Trust, a $3+ billion registered investment advisor. A Chartered Financial Analyst (CFA), Professor Longo earned an MBA in Finance and a PhD in Finance from Rutgers, where he also received his BA degree.

TYLER J. LONGO is a high school student in the Princeton, NJ area. He has completed the Introduction to Business, Finance, and Economics program for high school students at Columbia University and additional coursework in AP Economics, AP Statistics, and Financial Literacy. He has become financially literate in large part due to his work on this book....

Sommaire:

Preface xv

Acknowledgments xix

Chapter 1: Who Is Warren Buffett? 1

Introduction 1

Buffett the Teen 2

Who Are We to Write This Book? 3

What Is Financial Literacy and Why Does It Matter? 4

Some Fundamental Buffett Tips 5

Buffett's Work Ethic 7

Buffett Has Spent a Lifetime Learning 8

Why Is Buffett Happy? 10

Improve Your Communication Skills and See Your Lifetime Earnings Increase 50% 12

Acting with Integrity Is the Right Thing to Do and Good for Business 13

Buy Low, Sell High 14

Buffett Doesn't Succumb to Peer Pressure: The Inner Scorecard 15

Buffett's Fallback Career-Comedian 17

Buffett's Lasting Legacy: Philanthropy 18

Buffett's Tips from Chapter 1 19

References 20

Chapter 2: Investment Fundamentals According to Buffett 23

Introduction 23

The Miracle of Compound Interest Explained 24

Trade-Offs: A Fundamental Principle of Life 27

The Saint Petersburg Paradox: A Lesson on Risk and Return 29

Risk and Return: The Evidence 30

Diversification: One of the Few Free Lunches in Life 32

Supply and Demand Determine Price 33

Summary on Financial Fundamentals 35

Buffett's Tips from Chapter 2 36

References 36

Chapter 3: Bank Accounts, Debit Cards, Credit Cards, and Your Credit Score 38

Introduction 38

Insured Bank Deposits 38

Savings Accounts and Certificates of Deposit (CD) 40

Checking Accounts and Electronic Bill Payment 42

Parts of a Check 43

Balancing a Checkbook 44

Debit Cards and Automated Teller Machines (ATM) 45

Credit Cards and Charge Cards 46

Apps to Send Money: PayPal, Venmo, Zelle, Apple Pay, Android Pay, and so forth 49

Your Credit Score: A Report Card of Your Financial Responsibility 50

Personal Bankruptcy: Try to Avoid at all Costs 52

A Word on Bitcoin from Buffett 53

Buffett's Tips from Chapter 3 56

References 56

Chapter 4: Bonds and Inflation 58

Introduction 58

US Savings Bonds 59

Other US Treasury Fixed Income Securities 60

Inflation and the Consumer Price Index (CPI) 62

Bond Ratings and Corporate Bankruptcy 63

Corporate Bonds, Municipal Bonds, and Bowie Bonds 65

Bowie Bonds and Other Asset-Backed Securities 66

The Federal Reserve: The Central Bank of the United States 67

What Determines Interest Rates? 69

Intuition on Estimating the Price of a Bond 70

So Are Bonds Good Investments? 72

A Note on Negative Bond Yields 73

Appendix: Bond Valuation 74

Buffett's Tips from Chapter 4 75

References 75

Chapter 5: Stock Market Fundamentals 77

Introduction 77

Initial Public Offerings (IPOs): The Birth of a Stock 78

Investment Banks and Investment Bankers 78

The Main Event: The Stock Begins Trading on the Exchange 80

The Stock Exchange 81

A Sidebar on Stock and Mutual Fund Symbols 83

Dividends 84

Large Cap vs. Small Cap 87

Growth vs. Value 88

Domestic vs. International 90

An Index Fund: A Great Set It and Forget It Long-Run Investment 91

Beating the Market and the Efficient Market Hypothesis 92

Meet Mr. Market, the Manic-Depressive Stock Market 94

Buffett's Tips from Chapter 5 96

Appendix: Selling Short (or the Don't Try This at Home Area of Investing) 96

References 98

Chapter 6: Buffett's Approach to Stocks 100

Introduction 100

Estimating the Value of a Stock 101

Getting a Price Target with the Discounted Cash Flow Model 101

Gettin...