{"id":25847,"date":"2025-04-27T23:56:00","date_gmt":"2025-04-27T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=25847"},"modified":"2025-06-17T09:21:08","modified_gmt":"2025-06-17T01:21:08","slug":"tap-dancing-to-work","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/","title":{"rendered":"Buffett&#8217;s most important original book &#8220;Tap Dancing to Work&#8221;"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Introduction\" >Introduction<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Reasons_for_recommendation\" >Reasons for recommendation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Different_from_other_Buffett_books\" >Different from other Buffett books<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Financial_crisis\" >Financial crisis<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Salomon_brothers\" >Salomon brothers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Long_term_capital_management_corp\" >Long term capital management corp.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Persons_in_this_books\" >Persons in this books<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Paul_Tudor_Jones\" >Paul Tudor Jones<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#John_Merriweather\" >John Merriweather<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#David_Sokol\" >David Sokol<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Andrew_Tobias\" >Andrew Tobias<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Speech\" >Speech<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Lecture_at_the_University_of_Washington\" >Lecture at the University of Washington<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Speech_at_Columbia_University\" >Speech at Columbia University<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Investment\" >Investment<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Investment_primers\" >Investment primers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Risk\" >Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#How_to_invest\" >How to invest?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Shareholder\" >Shareholder<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Investment_principles\" >Investment principles<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Recency_bias\" >Recency bias<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Industry\" >Industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Moat\" >Moat<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Think\" >Think<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Read\" >Read<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Markets_and_Economy\" >Markets and Economy<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Economy\" >Economy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Market\" >Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Long_term_holding\" >Long term holding<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Markets_and_indices\" >Markets and indices<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Buffett_Indicator\" >Buffett Indicator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Interest_rate\" >Interest rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Who_steals_your_profits\" >Who steals your profits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Index_fund\" >Index fund<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Inflation\" >Inflation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Management_and_daily_life\" >Management and daily life<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Make_mistakes\" >Make mistakes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Management\" >Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Lucky\" >Lucky<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Philanthropism\" >Philanthropism<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Investment_experience\" >Investment experience<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Buffett_Partnership\" >Buffett Partnership<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-43\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Important_cases\" >Important cases<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-44\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Disney\" >Disney<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-45\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Freddie_Mac\" >Freddie Mac<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-46\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#American_Express\" >American Express<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-47\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#American_Airlines\" >American Airlines<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-48\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Coca_Cola\" >Coca Cola<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-49\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#PetroChina\" >PetroChina<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-50\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#BYD\" >BYD<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-51\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>&#8220;<a href=\"https:\/\/www.amazon.com\/Tap-Dancing-Work-Practically-Everything\/dp\/1591845734\" target=\"_blank\" rel=\"noreferrer noopener\">Tap Dancing to Work<\/a>&#8221; is a book that has been published for a long time, and many Buffett fans know the existence of this book. But I&#8217;m surprised that unless you&#8217;re a Buffett fan, not many people know about this book, and the book doesn&#8217;t seem to have a high rating on Amazon&#8211;I personally think it&#8217;s well written.<\/p>\n\n\n\n<p>All in all, I personally rate this book very highly. I myself always re-read this book every once in a while, because there are many contents in the book that can fully explain and make people understand why Buffett&#8217;s many investment views come and go.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_for_recommendation\"><\/span>Reasons for recommendation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The author of this book originally wanted to publish a biography of Buffett, but due to some reasons, the biography of Buffett was not published. Instead, he compiled the materials for the original biography of Buffett into a book, which is the protagonist of this article.<\/li>\n\n\n\n<li>The author of this book is Kailo. Carol J. Loomis, chief writer of &#8220;Fortune Magazine&#8221;, has known Buffett for more than sixty years. No wonder she is qualified to write such a book describing Buffett&#8217;s career and thoughts.<\/li>\n\n\n\n<li>Loomis was a reporter and senior contributing editor for Fortune magazine, and he was also the creator of the financial term &#8220;hedge fund.&#8221;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_from_other_Buffett_books\"><\/span>Different from other Buffett books<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The arrangement of this book is very special. The author will explain before each topic, and then the article will quote Buffett&#8217;s original words or his original contributions to express his views on many important investment topics\u2500\u2500This is my personal opinion. I think the greatest value of this book lies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Financial_crisis\"><\/span>Financial crisis<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Salomon_brothers\"><\/span>Salomon brothers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The author of this book has a profound description of the crisis caused by Salomon&#8217;s illegal treasury bond trading. Berkshire Hathaway is Salomon&#8217;s major shareholder. Therefore, Buffett personally took action during this crisis and served as Salomon&#8217;s chairman for ten months. .<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Long_term_capital_management_corp\"><\/span>Long term capital management corp.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Probably very few people will know that Buffett was involved in the famous incident that almost caused the US financial crisis in 1998. The rescue of Long-Term Capital Management (LTCM). Regarding this case, Buffett has several views:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u201cWhat that tells you is that underneath the mathematical elegance\u2014underneath all those betas and sigmas\u2014there was quicksand.\u201d<\/li>\n\n\n\n<li>\u201c10 or 15 guys with an average IQ of maybe 170 getting themselves into a position where they can lose all their money.\u201d<\/li>\n\n\n\n<li>\u201cYou never know who\u2019s swimming naked until the tide goes out.\u201d<\/li>\n\n\n\n<li>The vignette Buffett liked best: Congressman James Leach\u2019s memory that his father had told him to avoid anyone doing business out of the Cayman Islands.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Persons_in_this_books\"><\/span>Persons in this books<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Paul_Tudor_Jones\"><\/span>Paul Tudor Jones<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/en.wikipedia.org\/wiki\/Paul_Tudor_Jones\" target=\"_blank\" rel=\"noreferrer noopener\">Paul Tudor Jones<\/a> is regarded by the financial community as the ancestor of modern hedge funds (or hedge funds). While studying for a doctoral degree in sociology at Columbia University, he also served as the director of the Institute for Applied Social Analysis at Columbia University. Many research topics during this period became the basis for his doctoral thesis.<\/p>\n\n\n\n<p>In 1949, he published an article on stock market technical analysis in &#8220;Fortune Magazine&#8221; and established a partnership with others, which he has made a living from. His hedge fund beat Buffett at the same time as him, and Fidelity Investments&#8217; famous investment returns attracted the attention of Wall Street.<\/p>\n\n\n\n<p>In the articles related to Jones in this book, the commission sharing method of Jones Hedge Fund Company, the rate of return, and most importantly, the basic short selling operation techniques of Jones Hedge Fund are discussed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"John_Merriweather\"><\/span>John Merriweather<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/en.wikipedia.org\/wiki\/John_Meriwether\" target=\"_blank\" rel=\"noreferrer noopener\">John Meriwether<\/a> is known as the father of Wall Street bond arbitrage and an important figure on contemporary Wall Street. There are many financial events or famous financial books related to him, including the book of the same name &#8220;<a href=\"https:\/\/www.amazon.com\/Liars-Poker-Norton-Paperback-Michael\/dp\/039333869X\" target=\"_blank\" rel=\"noreferrer noopener\">Liar&#8217;s Poker<\/a>&#8221; written by Michael Lewis in 1989, and the following two financial crises, which are worth reading by interested readers. learn.<\/p>\n\n\n\n<p>In 1991, Salomon Brothers was involved in the Treasury securities trading scandal perpetrated by Paul Moser. The man who caused the disaster, Paul Moser, was a subordinate of Merryweather, and Merryweather was fined $50,000 in civil penalties.<\/p>\n\n\n\n<p>Later, this person started a new venture and founded Long-Term Capital Management (LTCM) with several Nobel Prize winners. In 1998, Long-Term Capital Management almost caused another financial crisis. Buffett participated in the rescue operations for both crises he caused. The two are really destined.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"David_Sokol\"><\/span>David Sokol<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/en.wikipedia.org\/wiki\/David_L._Sokol\" target=\"_blank\" rel=\"noreferrer noopener\">David Sokol <\/a>is the most powerful and most trusted executive by Buffett in Berkshire. If he had not been involved in the insider trading case before the Lubrizol merger, the outside world speculated that he might be a candidate to compete for Buffett&#8217;s successor. Buffett&#8217;s investment in BYD has a lot to do with him.<\/p>\n\n\n\n<p>In 2008, he wrote and self-published the book &#8220;<a href=\"https:\/\/www.amazon.com\/Pleased-But-Not-Satisfied-Sokol\/dp\/B0017OFXOQ\" target=\"_blank\" rel=\"noreferrer noopener\">Pleased But Not Satisfied<\/a>&#8220;, describing his business philosophy, and distributed the book to his subordinates and colleagues in Berkshire.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Andrew_Tobias\"><\/span>Andrew Tobias<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Andrew Tobias, author of the famous investment book &#8220;<a href=\"https:\/\/www.amazon.com\/Only-Investment-Guide-Youll-Ever\/dp\/0544781937\" target=\"_blank\" rel=\"noreferrer noopener\">The Only Investment Guide You&#8217;ll Ever Need<\/a>&#8220;, wrote a book for Fortune Magazine in his early years. An introduction to Buffett&#8217;s annual shareholder letter is included in this book. Andrew Tobias joked that he regretted it at the time. With the royalties and a little money, he could buy two shares of Berkshire Hathaway stock, otherwise he would have stopped working.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Speech\"><\/span>Speech<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lecture_at_the_University_of_Washington\"><\/span>Lecture at the University of Washington<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The original content of the speech delivered by Buffett and Bill Gates at the University of Washington in 1998 is published in this book. The two men spoke in the form of a dialogue. The discussion was all-encompassing and is worth reading.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Speech_at_Columbia_University\"><\/span>Speech at Columbia University<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In 1984, Buffett, as the descendant of Graham value investors, started a debate with scholars who supported efficient markets at Columbia University. This book does not include the complete debate, but it collects many related articles. It is recommended that interested investors read the complete debate (easily found on the Internet) and combine it with these articles in this book.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Investment\"><\/span>Investment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Investment_primers\"><\/span>Investment primers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buffett: Let\u2019s start by defining &#8220;investing.&#8221; The definition is simple but often forgotten: Investing is laying out money now to get more money back in the future\u2014more money in real terms, after taking inflation into account.<\/li>\n\n\n\n<li>&#8220;Even if currency holders continue to collect interest and recover principal, the loss cannot be permanent.&#8221;<\/li>\n\n\n\n<li>&#8220;Gold, however, has two significant shortcomings, being neither of much use nor procreative.&#8221;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Risk\"><\/span>Risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;In stating this opinion, we define risk, using dictionary terms, as the possibility of loss or injury.&#8221; <\/li>\n\n\n\n<li>Academics, however, like to define investment \u201crisk\u201d differently, averring that it is the relative volatility of a stock or a portfolio of stocks \u2014that is, their volatility as compared to that of a large universe of stocks. Employing data bases and statistical skills, these academics compute with precision the \u201cbeta\u201d of a stock\u2014its relative volatility in the past\u2014and then build arcane capital investment and capital allocation theories around this calculation.<\/li>\n\n\n\n<li>In their hunger for a single statistic to measure risk, however, they forget a fundamental principle: It is better to be approximately right than precisely wrong.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_invest\"><\/span>How to invest?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buffett adds, rather proudly, that his Omaha headquarters has no computers and that his analyses are based on no electronic data. Says he: \u201cWe read\u2014that\u2019s about it.\u201d<\/li>\n\n\n\n<li>Before pushing ahead, Buffett says, he carefully surveyed the hazards. \u201cWe don\u2019t make judgments based on ratings,\u201d he adds. \u201cIf we wanted Moody\u2019s and Standard &amp; Poor\u2019s to run our money, we\u2019d give it to them.\u201d<\/li>\n\n\n\n<li>&#8220;This is the cornerstone of our investment philosophy. Never expect to sell at a high point. When you buy at such a low price, you can still make a lot of money by selling at an ordinary price when you sell.&#8221;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Shareholder\"><\/span>Shareholder<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u201cThe only reason for a com-pany to repurchase its stock,\u201d Buf ett has ot en said, \u201cis because it is selling for less than it\u2019s worth.\u201d<\/li>\n\n\n\n<li>The corollary, he says, is a markup in prices for companies that do repurchase shares, because investors identify the buybacks as a sign that management will be consistently inclined to act in the interests of shareholders. \u201cAll managements say they\u2019re acting in the shareholders\u2019 interests,\u201d he observes. \u201cWhat you\u2019d like to do as an investor is hook them up to a machine and run a polygraph to see whether it\u2019s true.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Investment_principles\"><\/span>Investment principles<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buffett said: &#8220;That method of valuation is exactly what should be<\/li>\n\n\n\n<li>used whether you\u2019re in 1974 or you\u2019re in 1998. If I can\u2019t do that, then I<\/li>\n\n\n\n<li>don\u2019t buy. So I\u2019ll wait.&#8221;<\/li>\n\n\n\n<li>Would you look for a higher price-to-earnings ratio at this point than you did in 1969? Buffett: &#8220;The price-to-earnings ratio would be affected by interest rates. The difference between now and 1969 or any other time, in terms of calculating a valuation, wouldn\u2019t be affected by anything else.&#8221;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recency_bias\"><\/span>Recency bias<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buffett said: &#8220;Man\u2019s natural inclination is to cling to his beliefs, particularly if they are reinforced by recent experience\u2014a l aw in our makeup that bears on what happens during secular bull markets and extended periods of stagnation.&#8221;<\/li>\n\n\n\n<li>&#8220;The typical behavior of investors is to project what they see in front of them into the future. They have a habit that is difficult to change: they like to look in the rearview mirror instead of looking at the windshield in front of them.&#8221;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Industry\"><\/span>Industry<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Just because an industry has prospects does not mean that investment will be profitable.<\/li>\n\n\n\n<li>Cars and airplanes are representatives of technology industries that are subversive and impact human beings. However, when investing in these two industries, experience tells us that investors cannot make money.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Moat\"><\/span>Moat<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buffett said: &#8220;The key to investing is not to assess the impact of an industry on society, nor to estimate its future growth; it is to infer the competitive advantages of a specific company.&#8221;<\/li>\n\n\n\n<li>Buffett specifically pointed out: &#8220;The key to investing is to determine the competitive advantage of a specific company, and more importantly, how long can that advantage be maintained?&#8221;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Think\"><\/span>Think<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buffett: &#8220;Unless you can think for yourself, you will never invest well.&#8221;<\/li>\n\n\n\n<li>&#8220;But if you gave me the choice of being CEO of General Electric or IBM or General Motors, you name it, or delivering papers, I would deliver papers. I would. I enjoyed doing that. I can think about what I want to think. I don\u2019t have to do anything I don\u2019t want to do.&#8221;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Read\"><\/span>Read<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Buffett: &#8220;I just read. I read all day. I mean, we put $500 million in PetroChina. All I did was read the annual report.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Markets_and_Economy\"><\/span>Markets and Economy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Economy\"><\/span>Economy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;If you knew what was going to happen in the economy, you still wouldn\u2019t necessarily know what was going to happen in the stock market.&#8221;<\/li>\n\n\n\n<li>&#8220;An investor can\u2019t pick stocks that are better than average.&#8221;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market\"><\/span>Market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;I always say you should get greedy when others are fearful and fearful when others are greedy. But that\u2019s too much to expect. Of course, you shouldn\u2019t get greedy when others get greedy and fearful when others get fearful. At a mini-mum, try to stay away from that.&#8221;<\/li>\n\n\n\n<li>&#8220;The only way for investors to get ripped off is to bear high friction costs or to try to beat the market.&#8221;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Long_term_holding\"><\/span>Long term holding<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Stocks are a good thing to own over time. There\u2019s only two things<br>you can do wrong: You can buy the wrong ones, and you can buy or sell<br>them at the wrong time. And the truth is you never need to sell them,<br>basically.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Markets_and_indices\"><\/span>Markets and indices<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Buffett pointed out:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Dow Jones Industrial Average was 874.12 points on December 31, 1964, 875.00 points on December 31, 1981, and 9181.43 points on December 31, 1998.<\/li>\n\n\n\n<li>The U.S. government bond interest rate ranged from 4.2% on December 31, 1964 to 13.65% on December 31, 1981, and to 5.09% on December 31, 1998.<\/li>\n\n\n\n<li>The U.S. GNP growth rate: the first 17-year period from 1964 to 1981 was 373%, and the second 17-year period from 1981 to 1998 was 177%.<\/li>\n\n\n\n<li>GNP growth rate does not affect the stock market, interest rates do.<\/li>\n\n\n\n<li>&#8220;Under the triple pull of interest rate gravity, we find the main explanation for the high economic growth but the stagnant stock market.&#8221;<\/li>\n\n\n\n<li>Corporate profits account for an increasing proportion of U.S. GDP, and investment in talent may yield substantial returns. The first 17-year period, from 1964 to 1981, saw poor corporate profits and lower investor expectations. During the second 17-year period from 1981 to 1998, the Federal Reserve took a heavy hand at the economy, allowing corporate profits to rise to their highest level since the 1930s.<\/li>\n\n\n\n<li>In 1999, Buffett believed that in the 17 years from 1999 to 2016, a reasonable estimate of investors&#8217; total return was 7%, including the inflation rate; but commissions, handling fees, management fees and other friction costs need to be deducted. After deduction, it should be It is around 6% per year. In 2012, when this book was completed, from 1999 to 2012, the annualized return of the Dow Jones Industrial Index was only 3.32%, and the S&amp;P 500 Index was only 1.26%!<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffett_Indicator\"><\/span>Buffett Indicator<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The market value of all publicly listed company stocks as a proportion of the national GDP output value: if it falls to 70% or 80%, buying stocks will make a good profit. If it&#8217;s close to 200%, such as in 1999 and 2000, buying stocks would be a recipe for disaster.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Interest_rate\"><\/span>Interest rate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>As mentioned before: Buffett believes that &#8220;The price-to-earnings ratio would be affected by interest rates. The difference between now and 1969 or any other time, in terms of calculating a valuation, wouldn\u2019t be affected by anything else.&#8221;<\/li>\n\n\n\n<li>Buffett believes that the two major variables that affect investment performance are &#8220;interest rates and corporate after-tax profits.&#8221; Among them, &#8220;Interest rates. These act on financial valuations the way gravity acts on matter: The higher the rate, the greater the downward pull.&#8221;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_steals_your_profits\"><\/span>Who steals your profits?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In addition to interest rates and corporate after-tax profits, investors&#8217; psychology towards the market and friction costs are the other two major factors that affect stock prices. In 1998, Wall Street took away one-third of the total profits of the top 500 companies!<\/li>\n\n\n\n<li>&#8220;In addition to the overall profits of the company, investors cannot obtain additional wealth from the company stocks in which they invest.&#8221;<\/li>\n\n\n\n<li>Buffett believes that friction costs may have accounted for 20% of U.S. corporate earnings in 2005<\/li>\n\n\n\n<li>Buffett believes that &#8220;investor returns will decrease with the number of movements (transactions).&#8221;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Index_fund\"><\/span>Index fund<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buffett recommends that &#8220;most retail investors buy low-cost index funds.&#8221;<\/li>\n\n\n\n<li>\u201cBuying an index fund over a long period of time makes the most sense.\u201d<\/li>\n\n\n\n<li>\u201cIf they\u2019re not going to be an active investor\u2014and very few should try to do that\u2014then they should just stay with index funds. Any low-cost index fund. And they should buy it over time. They\u2019re not going to be able to pick the right price and the right time. What they want to do is avoid the wrong price and wrong stock. You just make sure you own a piece of American business, and you don\u2019t buy all at one time.\u201d<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Inflation\"><\/span>Inflation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Buffett personally wrote an article in Fortune Magazine in 1977 that will go down in history as &#8220;<a href=\"https:\/\/fortune.com\/2011\/06\/12\/buffett-how-inflation-swindles-the-equity-investor-fortune-classics-1977\/\" target=\"_blank\" rel=\"noopener\">Buffett: How inflation swindles the equity investor.<\/a>&#8221; In the article, he explains it in depth! This article expresses his views on the subject of inflation and is a must-read article for all investors and financial professionals who want to have a deeper understanding of this field.<\/p>\n\n\n\n<p>But he said that due to inflation, the company&#8217;s return on equity (ROE) will be locked at 12%. But now it seems that his view is wrong, because companies can still use the following financial operations to increase the return on shareholders&#8217; equity:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Increase financial leverage<\/li>\n\n\n\n<li>Reduction in corporate tax rates<\/li>\n\n\n\n<li>Improve pre-tax profit margins through management<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Management_and_daily_life\"><\/span>Management and daily life<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Make_mistakes\"><\/span>Make mistakes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;The biggest mistake is not doing something wrong, but not doing it and missing a good opportunity.&#8221;<\/li>\n\n\n\n<li>\u201cI missed some investment opportunities that I knew were promising, and I missed out on at least $10 billion in profit.\u201d<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Management\"><\/span>Management<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>&#8220;It is very, very difficult to regulate people.&#8221;<\/p>\n\n\n\n<p>Buffett only requires three things for the management of his companies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Capital allocation<\/li>\n\n\n\n<li>Regularly obtain information that he cares about to measure the performance of the company<\/li>\n\n\n\n<li>Price products when necessary<\/li>\n<\/ul>\n\n\n\n<p>Buffett also stated in the book that basically he believes that Berkshire&#8217;s leaders only need to do two things: allocate capital and motivate the leaders of their companies and departments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lucky\"><\/span>Lucky<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buffett believes, In my case, unless I lived in a rich country with a large population, large enough domestic securities trading volume, and occasionally the price was ridiculously wrong, my capital allocation ability would be of no use.<\/li>\n\n\n\n<li>&#8220;In a society that values \u200b\u200belite education, the children of these wealthy families are already far ahead of others when they start.&#8221;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Philanthropism\"><\/span>Philanthropism<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;No matter what kind of job you want to accomplish, isn&#8217;t the most logical thing to do is to find someone more qualified than yourself to do the job?&#8221;<\/li>\n\n\n\n<li>&#8220;Charity is slow to reciprocate, and that bothers me. I have to deal with a lot of people I don&#8217;t want to be around.&#8221;<\/li>\n\n\n\n<li>The book mentions that it is not easy for rich people to do charity in China. The main reason is that Chinese people tend to donate their property to the next generation, and China&#8217;s charitable foundations have long been ineffective, and the shadow of corruption lingers. The management fees of charitable foundations in the United States are about 3% of the fund&#8217;s total income, but in China they are about 10%.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Investment_experience\"><\/span>Investment experience<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffett_Partnership\"><\/span>Buffett Partnership<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This book mentions the partnership founded by Buffett in his early days, including its operating performance, investment methods, and most importantly, its differences from other hedge fund operations, investments, and commission-sharing methods.<\/p>\n\n\n\n<p>A post I wrote three years ago, &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/27\/warren-buffetts-ground-rules\/\">The Chronicle of Buffett Partners &#8220;Warren Buffett&#8217;s Ground Rules&#8221;<\/a>,&#8221; is the best book for readers to gain an in-depth understanding of Buffett Partners.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_cases\"><\/span>Important cases<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disney\"><\/span>Disney<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Berkshire once became a major shareholder of Disney because it owned Capital Communications Company and sold it to Disney. However, it sold out after three years because it was not optimistic about Disney&#8217;s management team during the period of ownership. Although he made a lot of money from the exit at the time, Disney&#8217;s stock price was very low at the time, and he also recognized Disney&#8217;s moat and the ability of the business to generate cash, but he did not stick to it. This case has also become one of several famous cases that Buffett later often brought up for review and ridiculed by himself from time to time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Freddie_Mac\"><\/span>Freddie Mac<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Freddie Mac&#8217;s compliance adjustments and revisions to the company&#8217;s financial report numbers alerted Buffett and he sold all of his holdings. Later it turned out that Buffett&#8217;s worries were not unfounded, and it just confirmed Buffett&#8217;s own famous saying: \u201cThere\u2019s never just one cockroach in the kitchen.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"American_Express\"><\/span>American Express<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It describes that Buffett took advantage of the crisis of American Express and the lack of interest in the stock price to enter the market to gain bargains during the two eras with a huge gap. The important thing is why he dares to be different and stake a lot of his money. This is the key point.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"American_Airlines\"><\/span>American Airlines<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Many people know that Buffett&#8217;s several investments in American airline stocks in the United States ended with heavy losses, but this is not true. He revealed in 2007 that he actually made a lot of money from his previous investment in American Airlines. The story is described in the book.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Coca_Cola\"><\/span>Coca Cola<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Buffett holds a large stake in Coca-Cola and has been a director of Coca-Cola for a long time. Moreover, he once used the authority of directors and major shareholders to replace the CEO of Coca-Cola who performed extremely poorly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PetroChina\"><\/span>PetroChina<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The timing of Buffett&#8217;s buying and selling of PetroChina was perfect. They were almost the best time to make profits. But all the money he earned from PetroChina was lost in ConocoPhillips, which he bought a few years later.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"BYD\"><\/span>BYD<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This book fully introduces why Buffett invested in BYD. Buffett was actually very reluctant at first, and even sent his most trusted assistant to China to verify whether BYD was a good company worthy of investment as recommended by Munger. Now it seems that Munger\u2019s insistence was right.<\/p>\n\n\n\n<p>Buffett&#8217;s investment in BYD broke two of his long-standing principles: he invested in an area he was unfamiliar with. Originally, he wanted to buy 25% of the shares, but Wang Chuanfu was only willing to sell him 10%.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"100\" height=\"151\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/05\/tp-Custom.jpg\" alt=\"Tap Dancing to Work\" class=\"wp-image-25848\"\/><figcaption class=\"wp-element-caption\">Credit: amazon.com<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"block-9d402b81-75c9-41fa-9a2d-6be1252e074e\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/06\/16\/warren-buffett-investor\/\"><\/a><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/06\/16\/warren-buffett-investor\/\">Primer&#8217;s book to know Buffett-&#8220;Warren Buffett: Investor and Entrepreneur&#8221;<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/27\/tap-dancing-to-work\/\">Buffett&#8217;s most important original book &#8220;Tap Dancing to Work&#8221;<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/27\/benjamin-graham-on-value-investing-grahams-bio-book\/\">&#8220;Benjamin Graham on Value Investing&#8221;, Graham&#8217;s bio book<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/21\/poor-charlies-almanack\/\" target=\"_blank\" rel=\"noreferrer noopener\">Munger&#8217;s most important work &#8220;Poor Charlie&#8217;s Almanack&#8221;<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/27\/charlie-munger\/\">Charlie Munger, a great investor worth remembering<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/24\/non-quantitative-factors\/\">Non-quantitative factors determine success or failure of an investment<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/04\/investor-temperament\/\">The most important quality for an investor is temperament, not intellect&#8221;<\/a><\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/26\/personality-impact\/\" target=\"_blank\" rel=\"noreferrer noopener\">Personality has a decisive impact on investment success or failure<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/25\/why-people-with-high-iq-prone-invest-failed\/\" data-type=\"URL\" data-id=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/25\/why-people-with-high-iq-prone-invest-failed\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why people with high IQ prone invest failed<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/14\/too-high-iq-is-not-useful-in-investment-but-will-hinder\/\" target=\"_blank\" rel=\"noreferrer noopener\">Too high IQ is not useful in investment, but will hinder<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/18\/time-discipline-and-patience-are-the-three-elements-of-successful-investment\/\">Time, discipline and patience are the three elements of successful investment<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/13\/qualitative-and-quantitative\/\">Qualitative and quantitative investment<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/27\/buffett-portfolio\/\" target=\"_blank\" rel=\"noreferrer noopener\">The commonalities of Buffett portfolio \u2013 cheap, fixed income, repurchase<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/17\/possibility-of-long-term\/\">Possibility of long-term holdings, Deep dive on Buffett&#8217;s case<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/03\/20\/long-term-investment\/\">How Buffett Structures His Long-Term Investment Portfolio<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/09\/buffetts-acquisition-criteria\/\">Buffett&#8217;s Acquisition Criteria<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/07\/27\/survivorship-bias\/\" target=\"_blank\" rel=\"noreferrer noopener\">People believe successful investors are survivorship bias cannot succeed<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/07\/buffett-deserves-study\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why Buffett deserves further study?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/07\/buffett-investment-idea\/\">What helps Buffett to get his investment idea?<\/a>&#8220;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/07\/cigar-butt-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">&#8220;Problems with Cigar Butt Investment<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/29\/inflation-and-rate\/\">Tax, inflation and rate are the top three serious killers to investors<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/22\/gates-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bill Gates&#8217; Investment Empire<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/18\/buffett-manage-berkshire\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Buffett manage Berkshire?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/22\/berkshire-shareholder-letter\/\">Buffett&#8217;s 2025 Berkshire Shareholder Letter<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/02\/25\/2024-shareholder-letter\/\" target=\"_blank\" rel=\"noreferrer noopener\">Buffett&#8217;s 2024 Annual Shareholder Letter<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/26\/2023-shareholder-letter\/\" target=\"_blank\" rel=\"noreferrer noopener\">Buffett&#8217;s 2023 Annual Shareholder Letter<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/05\/2024-berkshire-shareholders-meeting-transcript-and-video\/\" target=\"_blank\" rel=\"noreferrer noopener\">2024 Berkshire shareholders meeting transcript and video<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/09\/shareholders-meeting\/\" target=\"_blank\" rel=\"noreferrer noopener\">2023 Berkshire shareholders meeting transcript and video<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/17\/charlie-munger-2023-djco\/\">Charlie Munger speaks at 2023 Daily Journal Shareholders Meeting<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/26\/buffetts-first-tv-interview\/\">Buffett&#8217;s first TV interview<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/17\/buffett-squawk-box\/\">Full transcript of Buffett&#8217;s interview with CNBC&#8217;s Squawk Box<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/17\/outsiders\/\" target=\"_blank\" rel=\"noreferrer noopener\">Outsiders, one of the greatest investment books for managment team<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/17\/dear-shareholder\/\">Dear Shareholder<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>I personally rate &#8220;Tap Dancing to Work&#8221; very highly, because there are many contents in the book that can fully explain and make people understand why Buffett&#8217;s many investment views come and go.<\/p>\n","protected":false},"author":1,"featured_media":25848,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-25847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buffett"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/25847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=25847"}],"version-history":[{"count":76,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/25847\/revisions"}],"predecessor-version":[{"id":37053,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/25847\/revisions\/37053"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/25848"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=25847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=25847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=25847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}