This summary provides an overview of the key points from the document: 1) The document summarizes the book "The Tao of Warren Buffett" which compiles quotes from Warren Buffett on investing, business, and life. 2) The book is organized by topic, with each topic containing a Buffett quote and the authors' explanation of what he meant. 3) Some of the topics covered include getting and staying rich, business, education, the workplace, diversification, discipline, and mistakes to avoid. 4) The book aims to provide readers with Warren Buffett's wisdom and insights to help guide their own decisions in building investment portfolios and pursuing success.

1. SUMMARY OF
“THE TAO OF WARREN
BUFFETT”
Warren Buffet’s Words Of Wisdom
By-Rishabh Jain
19DM161
PGDM Finance

2. Introduction
• This book was written by Mary Buffett and David Clark.
• Marry Buffett was daughter-in-law of Warren Buffett for around 12
years from 1981-1993, she met a small group of devoted students of
the master investor’s wisdom who referred to themselves as
Buffettologists. One of them ,Davis Clark, kept notebooks filled with
Warren’s wisdom on investing. David's notebook was filled with
many of Warren’s most profound aphorisms ,which were great to
read because they had a way to really making you think.
• Keeping within the Taoist-Like spirit that surrounds Warren’s
teachings, David and Marry created The Tao of Warren Buffet, filling
it with what they think are Warren’s most enlightening aphorisms
on investing, business management ,choosing a career and pursuing
a successful life.

3. About the Book
• The book is a collection of Warrens quotes and the author’s explanation of
those quotes.
• Warren Buffett in this book gave his quotes in different areas which could
help Entrepreneurs, Investors or Business owners to change their way of
thinking and make wise decisions for any particular course of action.
• These areas are-
• Getting and Staying Rich , Business , Warren's Mentors , Education , The
Workplace , Analysts Advisors Brokers-Follies To Avoid , Why Not To
Diversify , Discipline Prudence And Patience , Beware The Folly Of Greed ,
When To Sell When To Leave , Mistakes Of Beware Of , Your Circle Of
Competence , The Price You Pay and Long-Term Economic Value Is the
Secret to Exploiting Short-Term Stock Market Folly.

4. • Under each topic, the authors quote Warren Buffett and
then go into a page long explanation of what he means.
They provide the reader with nourishing ideas to think
through in relation to actions the reader may want to take
in building their own investment portfolio.
• Warren’s mentor-
• Warren Buffett choose Benjamin Graham as his mentor , a man
known as dean of Wall Street. Graham Developed the concept of
value investing and taught a course on it at Columbia University In
New York City.

5. Some of the great Quotations From
Different Fields -
Getting And Staying Rich
• “Never be afraid to ask for too much when selling or offer too little when
buying.”
• “Wall Street is the only place that people ride to in a Rolls Royce to get
advice from those who take the subway.”
• “The market, like the Lord, helps those who help themselves. But unlike
the Lord, the market does not forgive those who know not what they do.”
• “You should look at stocks as small pieces of a business.”
Business
• “Managing your career is like investing-the degree of difficulty does not
count. So you can save yourself money and pain by getting on the right
train”.

6. • “There is a huge difference between the business that grows and
requires lots of capital to do so and the business that grows and doesn’t
require capital.”
Education
• “You want to learn from experiences ,but you want to learn from other
people’s experience when you can.”
The Workplace
• “It is only when the tide goes out that you learn who’s been swimming
naked.”
Analyst, Advisers, Brokers-Follies to Avoid
• “There seems to be some perverse human characteristic that likes to
make easy things difficult”.
Why not to Diversify
• “Diversification is a protection against ignorance. It makes very little sense for
those who know what they are doing.”
• “Wide diversification is only required when investors do not understand what they
are doing”.

7. Quotations from other fields-
• “If you let yourself be undisciplined on the small things, you will probably
be undisciplined on the large things as well.”
• “The most important thing to do if you find yourself in a hole is to stop
digging.”
• “Risk comes from not knowing what you are doing.”
• “I want to be able to explain my mistakes. This means I do only the things I
completely understand.
• “If they need my help to manage the enterprise, we are probably both in
trouble”
• “For some reason people take their clues from price action rather than
from values .Price is what you pay. Value is what you get.
• “What we learn from history is that people don’t learn from history”.

8. Learnings from the book
• There's so much in this book for investors and for anyone
just wanting to gain a basic understanding of the
underlying concepts, beliefs and values that have guided
Warren Buffett to become such a successful investor.
• The Tao of Warren Buffett is a wonderful way to start my
education in the world and mindset of investing and I have
found it to be a book to read and contemplate. It's a way of
practicing the art of investing and going beyond emotions
to analysis and practicing habits that may bring about
great financial success over time.