Think, Act, and Invest Like Warren Buffett: The Winning Strategy to Help You Achieve Your Financial and Life Goals

I've read more than 400 personal finance books. Today, there are only a few finance authors that I continue adding to my collection. Larry Swedroe is one of them. Each time he publishes, I learn something new. And each time he publishes, I'm inspired by something new for my magazine columns or finance students.In Think, Act and Invest Like Warren Buffett, Swedroe nails one of the most important concepts of investing on just the 19th page. So many people wonder whether "now" is a safe time to invest in the markets: that there's a "safe" time to buy and that they'll receive some kind of signal from a Zeus-like figure. Larry suggests that this mythical "signal" never comes. It doesn't exist. He uses an analogy of a reluctant surfer waiting for a "safe" time to ride the waves. People can sit on the sidelines forever if they're looking for the news media or the government (think Fiscal Cliff) to give them a signal. If they do so, they'll never make money. No such signal exists. Investors need to build a simple plan, as Larry instructs, and stick to it regardless of the market/media's blustering. Alluding to Warren Buffett's famous saying, Swedroe correctly suggests that "investing is simple, but not easy." The simplicity of investing is described well in Swedroe's sixth chapter where he discusses how to construct a well-designed portfolio. The models he describes aren't designed to specifically "work" in one type of market or one type of economy. They are solid, timeless models that smart investors should use, regardless of the media or the market's behavior. They're low cost, diversified, simple to manage, and will beat the pants off the investment results of most professional advisors.Swedroe, however, reminds us of Buffett's wisdom again: investing is simple, but not easy. Not easy. It's worth repeating. Even if you decide to follow one of Swedroe's models (they're very simple to construct and monitor) you may be wise to hire an advisor. Unemotionally re-balancing a portfolio of low cost index funds once a year--which only takes ten minutes--is as simple as tying shoes, but it can be emotionally draining if you're watching CNBC or listening to the financial media calling for the next financial meltdown.Larry's 8th chapter allows you to ask some hard questions about your emotional/psychological aptitude to wade into those surfing waters and re-balance your portfolio. If you're the type of person who's afraid of rough seas (remember that the market is never predictable) then you might be more interested--and it might be more profitable--for you to hire an advisor to do the surfing for you.Swedroe shows readers, in his 8th chapter, what kind of advisor they should be looking for.Most financial advisors are a bit like snake oil salespeople. Many of them are selling a con; others are well-meaning, but selling high-cost products that will be less profitable for you.Swedroe describes the kind of advisor you should be looking for: one with knowledge and integrity. They're rare, but they're out there.Andrew HallamGlobe and Mail Strategy Lab columnistCanadian Business Magazine columnistAssetbuilder columnistAuthor: Millionaire Teacher

Whether you're an investment novice or a seasoned veteran, it's easy to forget: Investing is not about the money; it's about how we employ it to enjoy a finer life. That's the "why" behind all the financial wherefores, and why I am endorsing a newly published book by seasoned financial author Larry Swedroe: Think, Act, and Invest Like Warren Buffett. I've enjoyed Swedroe's previously published books, but I especially liked his most recent read because, well, it's short. And to the point. He leads with what I feel investors today are critically in need of."Think, Act and Invest Like Warren Buffet is designed to explain how adopting some basic principles can help you outperform the vast majority of investors and increase the chances of achieving your financial and life goals."The rest of the book is dedicated to explaining how "outperformance" isn't what most people have in mind when they think about investing. The word tends to generate visions of a nimble guru wheeling and dealing with one's wealth. That's not how it works ... and the true gurus know that. Swedroe quotes Buffett: "By periodically investing in an index fund, the know-nothing investor can actually outperform most investment professionals."As Swedroe's book describes, what does work is sticking to the basics, such as investing according to your well-managed, individual plan (which implies you've got one). Structuring your portfolio to dampen unnecessary risk and capture available returns and controlling your emotions as well as avoiding unnecessary costs and remaining patiently on a long-term course toward your desired outcome.If you are going to work with a financial advisor, he or she should help you (1) understand and apply these elegant principles, and (2) ignore pursuits that mostly threaten to lead you astray and add unnecessary expense. Swedroe's book contains an excellent chapter on questions to consider along these lines when deciding whether to hire an advisor - or keep the one you've got. I particularly like how he addresses why, even if you are a confident investor, you may want to hire an advisor anyway."Even if you decide that you meet these requirements [to invest on your own], you may recognize that a good financial advisory firm can add value in many ways, including freeing you to focus your attention on the most important things in your life such as time spent with family, friends, or meaningful endeavors. Thus, you may place a greater value on that time than the cost spent on advice. It is a choice about finding the right balance in your life."The book closes with a final chapter, "Winning the Game of Life." I like the way it comes full circle on what I too strive to accomplish as an advisor. My goal is to free clients' time spent managing their finances, so they can spend that time on their true interests. I also help them understand the fallacies of attempting to "play the market." I want to help families play - and win - where it really counts: in their own lives.

The media could not be loaded.  I'd like to review this new book by telling you three things I like about it, and one I don't.First, I make short explanatory videos so I read a lot of these kind of books. I'm giving this book 5 stars because this is a shorter crisper version of his first book. The particular part of both books that I find most compelling is the demonstration of how combining truly diversified kinds of funds results in a better overall portfolio. It's valuable, well-done and easy-to-understand.Second, the book is thankfully short and sweet. It is wisdom that every working American should know. But it's rarely taught -- let alone taught well. So this is a book for everyone saving and investing. It's really not hard. If you are going to do it yourself, this steps you through all the key decisions. But, if you decide that you want to hire a financial advisor you really need your eyes wide open. Not only will this book give you the background to recognize good advice in advance, but it has a chapter telling you how to go about hiring a good financial advisor.Third, in this book he incorporates sketches from Carl Richards -- which are not only brilliant for their wisdom, but fun.So, nearly everyone should read it, but maybe not for the reason they'll buy it. Which brings me to the one thing I'm not fond of: the title. But, it is a clever hook to get people to buy the book. It's only natural for people to want to think, act, and invest like Warren Buffett. And admittedly, the first two chapters explain why they can't, and why (in fact) Warren Buffett recommends index funds at a very low cost for nearly everyone else. And that's what the book is about.So I highly recommend this book. Check it out.

Purchased this book after hearing it recommended from the The Rational Reminder Podcast.Make no mistake, this book is rough.The book provides a lot of generalizations about Index Investing without putting any data or rational to support any of the positions.To be honest, I'm not entirely sure who this book is for. If you're new to investing, don't buy this book. Other books (such as Millionaire Teacher, Balance, Psychology of Money, Wealthy Barber, Wealthy Barber Returns) are all way better introductions and just more interesting. If you're already on the Index Investing bandwagon, you'll learn next to nothing through reading this book (it's pretty amazing how little details there are in this book).Book has nothing to do with Warren Buffett and uses his name as a marketing ploy. I really don't appreciate the bait and switch approach.

I think this is Larry's equivalent of "The Investment Answer", and as such it is a good book for people who have never read any books about investing and want to get started. Having read dozens of these types of books I found it a bit weak in details (though this seems to be the point!), but more importantly doesn't have a whole lot to do with the way Warren Buffet invests (Be very rich, be very smart and very lucky in the first 15-20 years of your investing career. Have billions to take advantage of weakness in the economy and distressed companies. Have your name on its own merit increase the value of shares you purchase. Buy large amounts of highly-concentrated equity positions and hold them forever. There, I just wrote my own short book about investing the Buffet way! I never heard about Buffet as an index investor...).I am a huge fan of many of Larry's other books, which are more detailed but also very easy to read and give better direction/information. You would be much better off reading "Wise Investing Made Simple", one of my all time favorites!

This book does not contain any buffet investment strategies. This book title only only contain. this not at all book related Buffet.

The title is more than a little misleading ... the focus is not really on Warren Buffett's style but Swedroe's.

very good.