7 Secrets to investing like Warren Buffett

7 Secrets to Investing Like Warren Buffett was coauthored by Mary Buffett and Sean Seah. Mary Buffett is the former daughter-in-law of legendary investor Warren Buffett, the chairman of Berkshire Hathaway. Mary Buffet has coauthored many books with David Clark, the first being Buffettology. Sean Seah was born, educated and lives in Singapore. A strong believer in value investing, Sean Seah is best known as an educator and entrepreneur in the investment education field.

Both Mary Buffett and Sean Seah share the same value investment philosophy and said they have come together to write 7 Secrets to Investment Like Warren Buffett to explain Warren Buffett’s investment techniques and philosophy to new investors.

The seven secrets to investing like Warren Buffett:

Secret 1: The power of habits. Fast results seldom work. Warren Buffett once said: “No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.”

The key is to be disciplined and persistent.

Secret 2: The power of value investing. It is crucial to learn value investing, which advocates buying good and profitable businesses at sensible prices.

Secret 3: Generating stock ideas. Finding businesses in your circle of competence; list of financial websites to do research; best companies; best value investors.

Secret 4: Economic moats. Identifying economic moats (five questions to ask).

Secret 5: Language of business. Financial statements and ratios explained.

Secret 6: Valuation. Benjamin Graham’s Net-Net. Margin of safety. Price to book value. What is a good PE ratio? Dividend yield. Growth formula.

Secret 7: Portfolio management. Portfolio management rules. The mindset of a successful investor.

For beginning investors, 7 Secrets to Investing Like Warren Buffett is another book for your bookshelf.