Dear Mr. Buffett: What an Investor Learns 1,269 Miles from Wall Street - Hardcover

Tavakoli, Janet M.

Hardcover

ISBN 10: 047040678X ISBN 13: 9780470406786

Publisher: John Wiley & Sons, 2009

Synopsis

Janet Tavakoli takes you into the world of Warren Buffett by way of the recent mortgage meltdown. In correspondence and discussion with him over 2 years, they both saw the writing on the wall, made clear by the implosion of Bear Stearns. Tavakoli, in clear and engaging prose, explains how the credit mess happened beginning with the mortgage lending Ponzi schemes funded by investment banks, the Fed bailout and its impact on the dollar. Through her narrative, we hear from Warren Buffett and learn how his enduring principles caused him to see the mess that was coming well in advance and kept him and his investors well out of the way.

About this title

About the Author

Janet M. Tavakoli is the President of Tavakoli Structured Finance, a Chicago-based consulting firm to financial institutions, institut-ional investors, and hedge funds. She gave advance warning of major collapses including Long-Term Capital Management, First Alliance Mortgage, the thrift industry, and the current credit bubble. BusinessWeek called her "The Cassandra of Credit Derivatives." Tavakoli is a former adjunct associate professor in the Finance Department of the University of Chicago's Graduate School of Business, where she taught derivatives. She is also the author of several professional finance books, and is frequently quoted in the business press, including the Wall Street Journal , the Financial Times , BusinessWeek , the New York Times , and many others. She also appears on CNN, CNBC, CBS Evening News, Bloomberg TV, First Business Morning News, Fox News, Fox Business News, ABC, and BBC.

From the Back Cover

Praise for Dear Mr. Buffett

"Janet Tavakoli warned that the biggest credit bubble in world history was coming well in advance. Now she explains how the world could have avoided this disaster and how we can prevent it from happening the next time."
Jim Rogers, author of A Bull in China, Hot Commodities, Adventure Capitalist, and Investment Biker

"Janet Tavakoli writes about the exotic, abstract financial instruments that helped implode the U. S. financial markets, and she writes in a clear, sprightly way. She knows a lot, and translates it well. Contrasting the shenanigans of recent years against the good analysis and common sense of Warren Buffett is appropriate, and helps to illustrate the levels of irrational behavior."
Adam Smith (George J. W. Goodman), author of The Money Game and Supermoney

"If you are an investor, either directly or through mutual funds or managed accounts, you must read this compelling book.You should understand how name-brand institutions like Merrill Lynch, Citigroup, Wachovia, and UBS collectively lost hundreds of billions of dollars in ill-conceived products they invented and sold to investors who lost much more. Janet Tavakoli saw this coming and explains what happened clearly, logically, and persuasively. The juxtaposition of Buffett's investment philosophies provide sharp contrast with those of the major institutional participants who are responsible for the current debacle. Knowing how this disastrous phenomenon evolved will forever change the way you evaluate your investments and/or those intermediaries who make them on your behalf."
Eric Gleacher, Chairman, Gleacher Partners LLC

"Janet Tavakoli has a gift for using personal anecdotes and clear language to explain the complex instruments of structured finance. Dear Mr. Buffett is an insightful look at the current global credit crisis in language that the layman can grasp. This book is a must-read for every trustee allocating to alternative investments."
John P. Calamos SR., Chairman, CEO, and Co-CIO, Calamos Investments

From the Inside Flap

If legendary investor Warren Buffett invited you to lunch, what would you talk about? That was the question faced by structured finance expert Janet Tavakoli after she sent the Oracle of Omaha her book on credit derivatives, and he replied with an invitation. Now, in Dear Mr. Buffett, she gives you a seat at the table for the extraordinary conversation that began at that lunch and has continued through some of recent financial history's most turbulent moments.

Dear Mr. Buffett reveals how Buffett's wisdom shines through in today's financial world, including how he uses derivatives in classic Buffett style with prudence, transparency, and an aversion to Wall Street's herd mentality. Sampling their wide-ranging conversations and correspondence, Tavakoli offers both Buffett's and her own sharp insights into the mortgage crisis, hedge funds, shoddy accounting practices, and overall devolution of the markets.

Along the way, Tavakoli sheds light on an aspect of Buffett's success often overlooked by those focusing on his consistent returns and distinctive value investing approach. In addition to making the right picks for steady, long-lasting gains, Buffett has also avoided many major financial meltdowns and crashes, seeming to see them coming before they arrive. Whatever your level as an investor, you'll fine-tune your own analytical skills as you discover how both Buffett and Tavakoli were able to spot danger on the financial horizon.

In Dear Mr. Buffett, you'll also find answers to questions such as:

• How does Buffett find the rare opportunities for true arbitrage?

• What is the Golden Fleece Award, and why does Buffett call it "a gem"?

• How can Nobel laureates get investing so wrong in practice?

• How does Buffett's concept of value carry over to life beyond investing?

Dear Mr. Buffett is a witty, well-told account of how principle triumphs over greed and panic, and is a must-read for all those seeking the timeless wisdom that has beaten, and continues to beat, the market.

Edition details

• Publisher: John Wiley & Sons
• Publication date: 2009
• Language: English
• ISBN 10: 047040678X
• ISBN 13: 9780470406786
• Binding: Hardcover
• Number of pages: 304