One of my best friends Alvin, a great value investor, recommended this book to me five years ago and I bought it then. I always wanted to read the book but never got into it. I finally decided that it's about time and finished the book. [I guess amazing things do happen when you put your mind to it. :-)].

I have to say, although the book is neither inspirational nor informative on how to buy stocks, it is one of the best books I have read. The book is about detailed stories on the life of Warren Buffett. Before reading the book, I only know Buffett as the best investor but now I understood Buffett as a person. In some sense Buffett is no different than everyone else except he knew precisely what he wanted or liked in life at very early age and never stopped working towards it. It’s like he knew it so clear that he did not need motivation and did not need advice from others. He just goes and does it. He loved business, numbers and people. Stock markets was one of the place he could get all three. He loved numbers and obsessed on reading annual reports. I finally understood how he became the best investor and once the richest in the world (possibly the richest in the future.)

He didn't go out and try to buy the best stock. He just bought stocks he liked. Like every other person, what he loved often associated with his early encounters in life. For example, he was a delivery boy for the Washington Post. He loved the company then. Decades later he bought large chucks of Washington post when the new owner didn’t really have any business experience. He manages to "charm" the owner, taught her about business, but never help her making decisions. There is another time when he saved GIECO insurance from bankrupt, putting down large chunk of his own money and convinced Salomon Brothers to back GIECO. (Buffett’s mentor Ben Graham was on the Board of GEICO way before and GEICO stock was one of Buffett’s first ever stock purchases.) Later on when Salomon Brothers got in trouble, Buffett was asked to be its CEO. He laid down rules and turned the company around, (in his way). In all above cases we could argue that Washington Post, GIECO, and Salomon Brothers were under valued great businesses and Buffet is just happen to pick those companies. But buying a business at bankruptcy and teaching an owner starting from business vocabulary is too far of a stretch. I would argue Buffett loved the business because they, in some sense, help him shaped his past. He, of course, also loved the people that ran the business. Without love for the people and the business Buffet could spent his energy else where and avoided all the stress. I also argue that making money is not what Buffet wanted but helping and watching a great business to grow is. There is no comparison in saving a great company from bankruptcy and watch it prosper than buying GIECO stock, especially Buffett had emotional connection with the company way before. Buffett promised to never sell his GIECO holdings.

The stories are just endless. Warren Buffett had simple rules for businesses, he used the same rule for his businesses, businesses he managed, or businesses he owned stocks for over 60 years. It was really eye opening. He understood the essence of the American capitalism. As his record shows that almost all the companies he touched were successful. It's like he knew what they are. No one ever understood capitalism better than Buffett.

I am glad I finally decided to finish the book.

Get Buffett: The Making of an American Capitalist here!