The New Buffettology: The Proven Techniques for Investing Successfully in Changing Markets That Have Made Warren Buffett the World's Most Famous Investor

by Mary Buffett

Warren found that no matter how intelligent most people are, the nature of the beast ultimately controls their investment decisions.

Businesses make money in two ways: by having the highest profit margins possible and/or by having the highest inventory turnover possible.

Warren’s great discovery is that, from a short-term perspective, the stock market is very efficient, but from a long-term perspective, it is grossly inefficient. He had only to develop an investment strategy to exploit the shortsighted market’s inefficient long-term pricing mistakes. To this end he developed selective contrarian investing.