Buffett's tips : a guide to financial literacy and life /: a guide to financial literacy and life. (2020)

• Record Type: Book
• Further Information: Note: Tyler J. Longo, John M. Longo.
• Authors: Longo, Tyler J; Longo, John M
• Contents: Preface v Acknowledgements vii Chapter 1: Who Is Warren Buffett? 1 Introduction 1 Buffett the Teen 1 Who Are We to Write this Book? 2 What Is Financial Literacy and Why Does It Matter? 3 Some Fundamental Buffett “Tips” 3 Buffett’s Work Ethic 5 Buffett Has Spent a Lifetime Learning 6 Why Is Buffett Happy? 8 Improve Your Communication Skills and See Your Lifetime Earnings Increase 50% 8 Acting with Integrity is the Right Thing to Do and Good for Business 9 Buy Low, Sell High 10 Buffett Doesn’t Succumb to Peer Pressure: The Inner Scorecard 11 Buffett’s Fallback Career - Comedian 12 Buffett’s Lasting Legacy: Philanthropy 13 Buffett’s Tips from Chapter 1 14 Chapter 1 References 15 Chapter 2: Investment Fundamentals According to Buffett 18 Introduction 18 The “Miracle of Compound Interest” Explained 18 Tradeoffs: A Fundamental Principle of Life 20 The Saint Petersburg Paradox: A Lesson on Risk and Return 21 Risk and Return: The Evidence 22 Diversification: One of the Few Free Lunches in Life 24 Supply and Demand Determine Price 25 Summary on Financial Fundamentals 26 Buffett’s Tips from Chapter 2 27 Chapter 2 References 28 Chapter 3: Bank Accounts and Credit Cards 29 Introduction 29 Insured Bank Deposits 29 Savings Accounts and Certificates of Deposit (CD) 30 Checking Accounts and Electronic Bill Payment 31 Parts of a Check 32 Balancing a Checkbook 33 Debit Cards and Automated Teller Machines (ATM) 34 Credit Cards and Charge Cards 35 Apps to Send Money: PayPal, Venmo, Zelle, Apple Pay, Android Pay, etc. 37 Your Credit Score: A Report Card of Your Financial Responsibility 38 Personal Bankruptcy: Try to Avoid at all Costs 40 A Word on Bitcoin from Buffett 40 Buffett’s Tips from Chapter 3 42 Chapter 3 References 43 Chapter 4: Bonds and Inflation 44 Introduction 44 U.S. Savings Bonds 44 Other U.S. Treasury Fixed Income Securities 45 Income and the Consumer Price Index (CPI) 47 Bond Ratings and Corporate Bankruptcy 48 Corporate Bonds, Municipal Bonds, and Bowie Bonds 50 Bowie Bonds and Other Asset Backed Securities 50 The Federal Reserve: The Central Bank of the United States 51 What Determines Interest Rates? 53 Intuition on Estimating the Price of a Bond 54 So, Are Bonds Good Investments? 55 A Note on Negative Bond Yields 56 Buffett’s Tips from Chapter 4 56 Appendix: Bond Valuation 57 Chapter 4 References 58 Chapter 5: Stock Market Fundamentals 59 Introduction 59 Initial Public Offerings (IPOs): The Birth of a Stock 59 Investment Banks and Investment Bankers 59 The Main Event: The Stock Begins Trading on the Stock Exchange 60 The Stock Exchange 61 A Sidebar on Stock and Mutual Fund Symbols 63 Dividends 64 Large Cap vs. Small Cap 66 Growth vs. Value 68 Domestic vs. International 69 An Index Fund: A Great “Set It and Forget It” Long Run Investment 70 Beating the Market and the Efficient Market Hypothesis 71 Meet Mr. Market, the Manic-Depressive Stock Market 72 Buffett’s Tips from Chapter 5 73 Appendix: Selling Short (or the “don’t try this at home” area of investing) 74 Chapter 5 References 76 Chapter 6: Buffett’s Approach to Stocks 77 Introduction 77 Estimating the Value of a Stock 77 Getting a Price Target with the Discounted Cash Flow Model 77 Getting a Price Target with the Wall Street P/E Model 79 Buffett’s Approach to Stocks 80 Getting into the Buffett Mindset of Investing 81 Stay Within Your Circle of Competence 82 The Importance of Being Patient 82 Good vs. Bad Companies and the Passage of Time 83 How Buffett Thinks About Change in an Industry 84 Types of Businesses Buffett Likes 84 A Moat Around a Business is a Recipe for Success 84 Demonstrated Consistent Earnings Power 85 Look for Companies with Good Management 85 But Good Management Can’t Help Sinking Industries 85 Buy Companies That Have the Power to Overcome Inflation 86 Focus on Firms with Favorable Long-Term Prospects 87 When to Sell 88 Summarizing Buffett’s Approach 89 Buffett’s Tips from Chapter 6 90 Chapter 6 References 91 Chapter 7: Accounting Fundamentals 93 Introduction 93 The Income Statement: A Company’s Report Card for One Period 94 Apple’s Income Statement 94 The Balance Sheet: A Picture of the Company’s Report Card Since Inception 98 Current Assets 99 Long-Term Assets 100 Liabilities 101 Current Liabilities 102 Long-Term Liabilities 103 Stockholders’ Equity 103 A Quick Note on the Statement of Cash Flows 105 Summary 105 Buffett’s Tips from Chapter 7 105 Chapter 7 References 106 Chapter 8: Buffett’s Approach to Portfolio and Risk Management 107 Introduction 107 The Key to Selecting a Well Diversified Portfolio: Correlation 107 A (Theoretical) Portfolio with No Risk 108 Selecting an Optimal Diversified Portfolio: The “Business School” Approach 109 Buffett’s First Approach to Portfolio Selection: Index Funds 111 Buffett’s Second Approach to Portfolio Selection: Expert Mode 111 A Compromise Portfolio Solution 112 Home Many Stocks Make a Diversified Portfolio? 113 The Business School Approach to Risk 114 Buffett’s Critique of the Business School Approach to Risk 116 Buffett’s Approach to Risk 116 Buffett on Gold 117 Summarizing Buffett’s Views on Risk 118 Buffett’s Tips from Chapter 8 119 Endnote on CAPM 119 Chapter 8 References 120 Chapter 9: Business 101: Companies 122 Introduction 122 The Dow Jones Industrial Average: The Oldest U.S. Stock Market Index 122 How The Dow is Calculated 123 An Explanation of Stock Splits 124 Different Share Classes and Buffett on Stock Splits 125 Current Stocks in the Dow Jones Industrial Average 126 Materials Stocks in The Dow 126 Consumer and Business Services Stocks in The Dow 127 Consumer Goods Stocks in The Dow 128 Financial Stocks in the Dow 130 Healthcare Stocks in the Dow 132 Industrial Stocks in the Dow 133 Technology Stocks in the Dow 134 Telecommunications Services Stocks in the Dow 135 Some Blue-Chip U.S. Stocks That Aren’t in the Dow 135 The FANG Stocks – They Don’t Bite 136 China’s Emerging Titans 137 Some International Energy Titans 137 Some Global Consumer Titans 138 Some Global Financial Services Firms 138 Buffett’s Tips from Chapter 9 138 Chapter 9 References 139 Chapter 10: Business 101: People 142 Introduction 142 Past Business Leaders 142 Present Business Leaders 147 Buffett’s Tips from Chapter 10 154 Chapter 10 References 155 Chapter 11: Being Thrifty Like Buffett: Ways to Save Money 158 Introduction 158 Your Library: Free Books, Magazines, Newspapers, Music, Movies, and More 158 Free Educational Courses: Khan Academy, Coursera, edX 160 Websites for Free Stuff 160 Free Activities 161 Amazon.com: The World’s Biggest Store 162 Comparison Shopper Tools: Your New Best Friend 163 Barter: Turning A Cell Phone into a Porsche 164 Eat A Low-C
• Edition: 1st
• Publisher Details: Hoboken : John Wiley & Sons, Inc
• Publication Date: 2020
• Extent: 1 online resource
• Subjects: 332.678; Financial literacy; Investments; Anecdotes
• Languages: English
• ISBNs: 9781119763710; 9781119763727
• Related ISBNs: 9781119763918
• Notes: Note: Description based on CIP data; resource not viewed.
• Access Rights: Legal Deposit; Only available on premises controlled by the deposit library and to one user at any one time; The Legal Deposit Libraries (Non-Print Works) Regulations (UK).
• Access Usage: Restricted: Printing from this resource is governed by The Legal Deposit Libraries (Non-Print Works) Regulations (UK) and UK copyright law currently in force.