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How Buffett Does It - 24 Simple Investing Strategies From The World's Greatest Value Investor is a simple guidebook for starters in the equity trading field. This book by James Pardoe, a Warren Buffett follower, focuses on an important and successful technique, used by the second richest man on Earth: value investing, which basically refers to the trading of stocks according to an enterprise's intrinsic value.

For a starter like me, this book is simple yet resourceful. All those complex numbers, formulas, and so called "get rich fast" methods are nowhere to be seen in this book. Diction used is easy to understand, without all those Wall Street jargons. All you need to do is to read page by page, understand all the ethics, steps and the attitude needed to become a successful value investor.

Why read a value investing guide that teaches you a slower way to get rich instead of those guides that contain all those formulas that "promise" you big bucks in no time? Well, the answer I can give you is simple. Warren Buffett used value investing and has thus became one of the richest men in the world. Can you name me any other investor that uses all those high end tickers, formulas and even stocks analysing tactics whose net worth can be compared with Buffett's?

The 24 strategies within in the book are easy to follow. The reason why people have such a tough time making money out of the stock market is simply because of their attitudes, as the chapters keep highlighting the ethics of value investing. The book exposes all those myths such as buying a few stocks as reserve, selling when the market is falling, getting insider tips, reading stock trends, buying and selling frequently to get the most out of it, etc. Because as far as Warren Buffett is concerned, they're all not true.

This book also recommends a few other books on the same topic, such as The Intelligent Investor by Buffett's mentor, Banjamin Graham and BerkshireHathaway.com, the official site of Warren Buffett's company. Value investing, as pointed out in that book, is contradictory with other major investment books out there so you'll have to choose if you want to read up on this particular technique.

However, I find that the elaboration on some strategies get repetitive at times and a lot of it is merely there to fill up the 24 tips. The most significant tip is the 24th one which is a conclusion of all the other tips. You really need to have enough nerves in order follow the guides stated as the book keeps telling you to trust yourself and to ignore everyone else.

How Buffett Does It is definitely a good book but whether the advice given is to be heeded is totally up to you. However, one good reason to heed it is that the man who followed these steps made billions out of the stock market.

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(4 votes, average: 4.25 out of 5)
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