Buffett: The Making of an American Capitalist by Roger Lowenstein

Buffett: The Making of an American Capitalist by Roger Lowenstein is a definitive biography of one of the most iconic investors of all time, billionaire Warren Buffett. The biography captures the rise of one of the most successful investors of our generation and goes deep into how Buffett came to be known for his consistent and highly successful investments, in addition to his remarkable wit and fascinating persona.

The book starts with Buffett’s humble beginnings, chronicling his childhood in Omaha, Nebraska. His parents weren’t well-off and his father was a struggling stockbroker. Young Buffett made a habit of reading and taking notes from the financial papers, always looking for advice to make money. He quickly took to the stock market and invested his meager savings, leading to successful trades and his first million at the age of eleven. By the time he graduated high school, he had already accumulated a significant amount of wealth.

Lowenstein then portrays Buffett and his unique ability to identify and capitalize on market opportunities. His famed investment in American Express in the early 1960s is a prime example of his business acumen. He and a partner invested ten million dollars in the stock at a time when it had just been affected by the ‘Salad Oil Scandal’ resulting in a steep discount in its price. Buffett, quick to pick up a bargain, tripled his money in a few months and left a lasting impression on Wall Street.

The book follows Buffett through his investment strategies, his growing business empire and the ups and downs that coincided with it. Buffett constantly studied company reports, industry news, and fluctuating prices to make sure he always knew the perfect time to buy and sell. His unquenchable thirst for knowledge and dedication towards learning was the reason behind his extraordinary returns over time.

Buffett’s approach to investments was quite unorthodox and often went against the accepted practices of the time. He purchased stakes in companies with strong management and robust operations, believing that reliable business fundamentals would deliver adequate returns over time. One of his iconic investments was in Coca-Cola, which he famously described as “a business algorithm in a can”.

This biography of Warren Buffett is a multifaceted portrait of a fascinating individual. His sharp insight, charm, and charisma have made him a household name and a model of success. For those looking to understand the financial genius of this Wall Street legend, Roger Lowenstein’s extensive and thorough account is the perfect place to start.