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Building a Small Business that Warren Buffett Would Love

ISBN: 978-1-118-13888-5
194 pages
March 2012
Building a Small Business that Warren Buffett Would Love (1118138880) cover image
The guide to making money the Warren Buffett way

The book that presents the same fundamentals that Warren Buffet used to turn an initial $105,000 investment into a $40 billion fortune in a way the general reader can apply, Building A Small Business that Warren Buffett Would Love is a succinct, logical, and straightforward guide to financial success. Highlighting one simple message: that Warren Buffett successfully invests in great businesses with strong fundamentals, it argues that these fundamentals can be replicated in a small business to yield outstanding results. Offering a solution for people wanting to start a business to provide additional income in today's uncertain economy, and designed to help entrepreneurs build fundamentally sound, small businesses using Warren Buffett's business investment perspective, the book covers:

  • An overview of Warren Buffett's investment methodology and how it applies to small businesses
  • The details of the Buffett investment criteria—a consumer monopoly, strong earnings, low long term debt, and high ROE with the ability to reinvest earnings—and the application of these fundamentals to both start-up and existing small businesses

An approach to building a small business that applies the well respected principles of Warren Buffett, the book presents an exciting new look at the steps to success that have been proven trustworthy by one of the richest men in the world.

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Foreword ix

Acknowledgments xi

Introduction Painting the Picture of the Ideal Business 1

Chapter 1 Buffett and the Fundamental Business Perspective 9

Chapter 2 The Importance of a Consumer Monopoly or Toll Bridge 19

Chapter 3 Strong, Consistent, and Growing Earnings 31

Chapter 4 Emphasizing a High Return on Equity 51

Chapter 5 Retained Earnings—The Fuel for the Engine of Compounding Returns 81

Chapter 6 The Tumor of Long-Term Debt 131

Chapter 7 Keeping Up with the Joneses 147

Chapter 8 With Healthy Net and Gross Margins 157

Chapter 9 Building a Small Business That Warren Buffett Would Love—Finishing the Landscape 167

Epilogue 175

Notes 185

About the Author 189

Index 191

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Adam Brownlee is the author of three books on business and investing. As the former Director of the Kentucky Small Business Development Center at Western Kentucky University, he has assisted hundreds of small business owners in making key decisions about the refinement and reformation of their businesses.
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February 29, 2012
Building a Small Business that Warren Buffett Would Love

The guide to making money the Warren Buffett way

Every great business—whether it's a popular pizza restaurant or a baby formula maker—is built on the same core fundamentals. Warren Buffett figured out this universal business truth at an early age, and used it to turn an initial investment of $105,000 into a massive $40 billion fortune. Taking a long, hard look at Buffett's investment choices, business and investing guru Adam Brownlee’s new book Building a Small Business that Warren Buffett Would Love (Wiley; Hardcover and eBook; March 2012; $24.95; 978-1-1181-3888-5) takes this sound investment methodology and adapts it for small business owners looking to build, grow, or improve their own businesses.

Highlighting the essentials that make Berkshire Hathaway's impressive portfolio of businesses great, from their strong earnings track records to their ability to successfully raise prices to match inflation, the book presents a road map for transforming a business using the same simple values that define these economic powerhouses.

“The core of a strong business is not a mystery, nor is it a complicated mess. It is found in the wisdom of Warren Buffet, which is a virtual blueprint to create superior business results and build a powerful small business engine,” says Brownlee. “If you follow this blueprint, digest its meaning, and learn its intricacies, you can build an economically superior small business, one that Warren Buffet would love.”

Designed to help entrepreneurs build fundamentally sound, small businesses using Warren Buffett's business investment perspective, the book is packed with essential information for start-ups and existing small businesses looking to take things to the next level, such as:

  • The details of the Buffett investment criteria: a consumer monopoly, strong earnings, low long term debt, high ROE with the ability to reinvest earnings - and how it applies to start-ups and small businesses
  • How to pick the right business by looking at such factors as long term debt, margins, return on equity, etc.
  • The thrill and opportunity of pursuing a passion through small business and the difficulties faced by start-up and existing business owners
  • Examples from Buffett company investments including Fruit of the Loom, Geico, Coke and more in order to demonstrate the sound logic and plain-to-see success of Buffett's way of doing business

Humorous and accessible, Building a Small Business that Warren Buffett Would Love presents a succinct, logical, and straightforward guide to financial success and offer a solution for people wanting to start a business to provide additional income in today's uncertain economy.

“The material itself can lead to employment through entrepreneurship for the reader, but it can also lead to the additional job creation with the small business start” adds Brownlee. “Additionally, I encourage unemployed folks with limited options to start a business doing something they love part-time and to pick up the rest of the hours through a part time job.  This should result in work with a purpose and a paycheck. With this message I hope to make a significant dent in the unemployment rate and improve the economy.”

For each purchase, Brownlee will give away a book or eBook to an entrepreneur or a person searching for work.

For addition information about the book, please visit http://www.onemillionjobsnow.com/index.html

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