THE ESSAYS OF WARREN BUFFET: LESSONS FOR CORPORATE AMERICA BOOK REVIEW

“The Essays of Warren Buffett: Lessons for Corporate America” – is an approach for
Finance and Investment driven from Essays of Warren E. Buffett – Chairman and CEO of
Berkshire Hathaway Inc. written by Lawrence A. Cunningham – Professor of Law, Director, The
Samuel and Ronnie Heyman Center, Benjamin N. Cardozo School of Law, Yeshiva University,
total pages 219, ISBN 9788926393062, The Book comprise of Introduction and five chapters,
Bibliography, Reference and index. Chapter No. I is the Corporate Finance, Chapter No. II is
about Finance and Investing ways, Chapter No. III is related to Common Stocks, Chapter No. IV
containing mergers and acquisitions, Chapter No. V is relating to Accounting of investment and
Taxation.
The author in an introduction explained that book is written from the essay of Warren
Buffett’s Berkshire Hathaway Shareholders letters which has been organized in a book. Author
explain that Warrant Buffet becomes popular with Ben Graham ideas and also due to his own
applications. Warren Buffett essay advised to investors that always focus on fundamentals for
better earning. The purpose of this book writing is collecting the valuable informal information
from Essays which would be useful for all audience who want to go for investment. This book
achieved his goal as this is teaching how to make sound investment selections based on Warren
Buffett’s teaching so I will recommend this book to all audience. Any audience who is interested
in Warren Buffet’s views then this book is the best source as it organized from essays over the
year into a single organized book with topics in detailed. This book basically shows the
learning’s of Warren Buffets as well as learning from Ben Graham and Dvid Dood with practical
advices and best practices of business in Corporate Governance, Finance & Investment, Stocks,
Accounting and Taxations.
The Warren Buffet got his early education from Wharton School of the University of
Pennsylvania and later shifted to University of Nebraska and got Degree of Bachelor of Science
in administration. He completed his Master of Science in Economics in 1951 and their teachers
were Benjamin Graham and David Dodd. He has started working with his father’s company,
Buffett-Falk & Co. from 1951 to 1954 and then at Benjamin Graham’s partnership from 1954 to
1956. He became a millionaire in 1962 as a result of his earnings from all his partnerships.
I have divided this book into four sections. First section consists of approaches to
Corporate Governance. The second section consist Merger and Acquisition, third section consist

MUHAMMAD ZESHAN
THE ESSAYS OF WARREN BUFFET: LESSONS FOR CORPORATE AMERICA BOOK REVIEW

on investors Investment policy and fourth section comprises on Common Stocks and
Shareholders Interest.
In Section No. I – The thoughtful Principles related to Owners, Boards and Managers
guidance; how to operate the business and explained importance of corporate governance with
his Principles. Warren Buffet Explained that why first rate managers are more successful how
the performance of CEO, Senior Management and Board of Directors to be measured. Further
because of good Corporate Governance the shareholders in Berkshires’ Annual General Meeting
are increasing.
Section No. II – This section explaining the approaches for Merger and Acquisition i.e.
policies for merger and acquisitions of company stocks when company book value is double then
acquire the stocks at half price. When merging or acquiring a company then how to treat
Economic Good Will and Accounting Good Will. Author said going concern value and
liquidation value also be measured before going for merger.
In Section No. III – Explaining the approaches for funding and intelligent investing with
mathematical and technical analysis. It is useful for investor to know how to make good
portfolio as Warren Buffet says “don’t put all eggs in one basket” and the Beta of Portfolio
should be volatile, further the Intrinsic Value, Circle of Competence, Margin of Safety would be
more helpful. The advice of Warrant Buffett is to avoid business problem because solving of
problem is much difficult as compare to avoid of any problem. For intelligent investment
different approaches principles defined by Warren Buffett like Look Through Earning, Intrinsic
Value, Book Value, Market Prices has been. Further this book also guided about the taxation
treatment. Warren Buffet said that after investing in company wait for results as he mentioned in
his notes “No matter how great the talent or effort, some things just take time; you can’t produce
a baby in one month by getting nine women pregnant.”
Section No. IV – This sections tech us that how to attract investor to invest in a company
on long term basis instead of short term through avoiding trading transaction cost, increasing
shareholder wealth by paying dividend or by retained earning which are better for shareholders,
by splitting stock of hundred shares lot and sell stocks on intrinsic business value.
The Book Essays of Warren Buffett for investment written by Lawrence A. Cunningham
– Professor of Law, Director is interesting and very informative. It is my suggestion that all
investors should read it before planning for investment. The author collected the all letters of

MUHAMMAD ZESHAN
THE ESSAYS OF WARREN BUFFET: LESSONS FOR CORPORATE AMERICA BOOK REVIEW

Warren Buffett Annual Meetings and then converted into a book which shares the practical
experience of Corporate Governance, Investment Principles and valuation of Common Stocks
which are most important. The practical experience of Warren Buffett explained that how
Berkshire Company increased the value of their Shares in Market and encourage the investor
who want to invest on long term basis. The valuation of Liquidity, going concern value, intrinsic
value, safety margin teaches that how and where to invest.
I will say that this book deserve my full recommendation for an investor who want to go
for an investment. The book itself is a quite accomplishment and this is rare book. The reader of
this book will enjoy and learn from the quote of Warren Buffett and it will also be worthwhile.
Contradicting Points – The author collected the letters of Warren Buffett from Berkshire
Company and then converted into a book which no doubt are very informative and helpful while
going for investment the investor may need other information like how to measure risk, what are
the investment alternatives other than stocks which this book not explained we can say these
quibbles are minor.

MUHAMMAD ZESHAN