Warren Buffett’s Berkshire Hathaway is out with its annual letter to shareholders.
Near the bottom of the letter, the billionaire investor touches on his favourite reads of 2016.
“The best book I read last year was ‘Shoe Dog’ by Nike’s Phil Knight ,” he writes. “Phil is a very wise, intelligent and competitive fellow who is also a gifted storyteller.”
He adds that Omaha, Nebraska-based retailer The Bookworm will have “piles” of the book, in addition to “investment classics by Jack Bogle,” at the annual Berkshire shareholder meeting in May.
Notably, Buffett is actually briefly mentioned near the end of “Shoe Dog.”
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It was a $1 million bet: Could hedge funds outperform index funds over a decade?
Warren Buffett said no in 2007. Now it looks like the billionaire investor was right.
His chosen index fund, the Vanguard 500 Index Fund Admiral Shares, climbed 66% from the start of the bet through the end of 2015, compared with a gain of 22% for a basket of hedge funds selected by asset manager Protégé Partners, including fees.
The $1 million bet with Protégé Partners ends Dec. 31. At this point, it would take a massive stock-market drop for Mr. Buffett to lose. An extended bull market and sub par performance by many hedge funds since the 2008 financial crisis have helped his case.
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Mohnish Pabrai, managing partner of Pabrai Investment Funds, speaks during the Value Investing Congress in New York. Photographer: Daniel Barry/Bloomberg News
Since inception, Mohnish Pabrai has beat the stock market by triple digit returns. What was the key to his success? Pabrai would argue nothing unexpected or surprising. In fact, he attributes his massive success to a keen sense of cloning other super-investors like Warren Buffett and Charlie Munger. On the investing podcast, Pabrai discussed a range of topics to help explain his way of thinking and methods for achieving such strong performance.
Preston Pysh: [2:29] You have an IT background that not a lot of people know about. Would you have taken a different career path if you had found value investing first?
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The original article appears on valuewalk.com and is available here.
Over the years reading plenty of books on investing and studying many of the world’s greatest investors I’ve come to recognise how truly insightful the combination of Warren Buffett and Charlie Munger really are.
While Warren Buffett cites the book “The Intelligent Investor” as “by far the best book on investing ever written” his style evolved over the years in a large part influenced by Charlie Munger.
“Charlie shoved me in the direction of not just buying bargains, as Ben Graham had taught me. This was the real impact Charlie had on me. It took a powerful force to move me on from Graham’s limiting views. It was the power of Charlie’s mind. He expanded my horizons” Warren Buffett
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