Here is THE book recounting the life and times of one of the most
respected men in the world, Warren Buffett. The legendary Omaha
investor has never written a memoir, but now he has allowed one
writer, Alice Schroeder, unprecedented access to explore directly
with him and with those closest to him his work, opinions,
struggles, triumphs, follies, and wisdom. The result is the
personally revealing and complete biography of the man known
everywhere as "The Oracle of Omaha."
Although the media track him constantly, Buffett himself has never
told his full life story. His reality is private, especially by
celebrity standards. Indeed, while the homespun persona that the
public sees is true as far as it goes, it goes only so far. Warren
Buffett is an array of paradoxes. He set out to prove that nice
guys can finish first. Over the years he treated his investors as
partners, acted as their steward, and championed honesty as an
investor, CEO, board member, essayist, and speaker. At the same
time he became the world's richest man, all from the modest Omaha
headquarters of his company Berkshire Hathaway. None of this fits
the term "simple."
When Alice Schroeder met Warren Buffett she was an insurance
industry analyst and a gifted writer known for her keen perception
and business acumen. Her writings on finance impressed him, and as
she came to know him she realized that while much had been written
on the subject of his investing style, no one had moved beyond that
to explore his larger philosophy, which is bound up in a complex
personality and the details of his life. Out of this came his
decision to cooperate with her on the book about himself that he
would never write.
Never before has Buffett spent countless hours responding to a
writer's questions, talking, giving complete access to his wife,
children, friends, and business associates-opening his files,
recalling his childhood. It was an act of courage, as
The
Snowball makes immensely clear. Being human, his own life,
like most lives, has been a mix of strengths and frailties. Yet
notable though his wealth may be, Buffett's legacy will not be his
ranking on the scorecard of wealth; it will be his principles and
ideas that have enriched people's lives. This book tells you why
Warren Buffett is the most fascinating American success story of
our time.
1. Discuss the quotation that gave this biography its title:
"Life is like a snowball. The important thing is finding wet snow
and a really long hill." What makes Warren Buffett better than
others at finding and recognizing "wet snow"? What gives him the
patience and discipline to endure the long haul? Describe the
"snowballs" you have accumulated, financial or otherwise. What can
you do to help them grow and gain momentum?
2. Buffett often refers to having won the "ovarian lottery,"
particularly because he was born in the United States in 1930 and
was raised in a relatively stable household. Was his success due to
circumstance as much as to innate talent or personal drive? How do
his work habits compare to those of most people you know-not just
in terms of how many hours he devotes to work, but also how he
spends those hours?
3. Would you have been one of Warren Buffett's initial
investors? In what way did some of the qualities that caused him to
be rejected (even blackballed from a country club) prove to be the
very qualities that helped him create wealth?
4. Discuss Susan Buffett's legacy of deep compassion and social
justice. In what way did her personality complement and complete
Warren's? How did she contribute to his financial success? What
changes did she seem to experience when she went from being Susan
Thompson to Susan Buffett, then moved toward greater independence
in California?
5. How did Warren and Susie Buffett's childhoods prepare them
for the fame and opportunity that lay ahead? How did it affect
Warren to be raised against the backdrop of Howard's career as a
conservative politician? What emotional hurdles did Leila set? How
was Susie able to help him overcome them?
6. Discuss the guiding principles that have driven Buffett's
investment decisions (the book's index provides a helpful list,
under "Warren Buffett/Investing Principles"). How many of these
principles have subtly changed over the decades? What distinguishes
his "cigar butt" strategy from the strategies of other
value-seekers, or from the corporate raiders of the 1980s and early
1990s?
7. Why do Buffett's strategies adapt so well to a variety of
sectors, from newspapers to insurance companies, and even the rise
of new technologies? How did your predictions about the high-tech
bubble compare to Buffett's warnings delivered at Sun Valley in
1999, described in chapter two?
8. Schroeder weaves business history and personal history to
tell Buffett's story. What does this teach us about the importance
of the human element in investment decisions? How did tips from
Dale Carnegie's class prove to be just as important as financial
savvy when Buffett began targeting companies to acquire?
9. What traits did Katharine Graham and Buffett's other trusted
friends share? What kinds of people is he drawn to?
10. Would you be content with a long-distance marriage like the
one Warren and Susie had? What are the advantages of such an
arrangement, particularly for spouses who have been married for a
long time? What made Astrid a good match for Warren, especially at
the time in his life when they met?
11. Discuss Warren and Susie's parenting styles. How do their
children compare to the children of other wealthy parents you have
heard about? Did you agree with Warren's observation that many
wealthy parents who decry welfare programs actually create a form
of welfare within their own families?
12. What did it cost Warren Buffett emotionally to amass his
record-breaking fortune? How did he recoup some of those personal
losses? How did you react to his observation in chapter 58,
"Buffetted," that "the trouble with love is that you can't buy
it"?
13. Why was Buffett able to maintain modest tastes, preferring a
hamburger and French fries to haute cuisine and enjoying the same
home, car, and clothes for years? What makes him eschew status
symbols? What do you think the "purpose" of money is?
14. What does the story of Rose Blumkin, captured in chapter 44,
indicate about succeeding in business in America? How did her
business strategies mirror Buffett's in many ways?
15. What drew Buffett to Salomon Brothers? What does this
episode demonstrate about the way a reputation of integrity can be
made and broken in corporate America? Does the culture of your
workplace have more in common with Salomon or with Buffett's office
on Kiewit Plaza?
16. How familiar had you been with Berkshire Hathaway before
reading The Snowball? Why have so few other
corporate leaders had the courage to try unconventional approaches
to growing a company, such as not splitting the stock price?
17. If you had been one of Warren and Susie's children, would
you have sold your shares in Berkshire Hathaway? If so, how would
you have spent or invested the proceeds? What charities would you
have supported during the periods of mandated philanthropy?
18. Were you surprised by the fact that Buffett approves of
estate taxes? Do you agree with his rationale?
19. Discuss Buffett's decision to give a substantial number of
Berkshire Hathaway shares to the Bill and Melinda Gates Foundation,
and the ways this decision inspired others, from all walks of life,
to become philanthropists. What is the potential for the world if
most philanthropists do as Buffett did, rather than building
monuments to themselves?
20. How will you apply Buffett's wisdom in the closing chapter,
"Claim Checks," to your own life?