Comments on Bud Labitan's articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/bud-labitan/articles http://seekingalpha.com/article/69566-the-four-filters-of-warren-buffett-and-charlie-munger?source=feed#comment-407372 407372 Sat, 28 Feb 2009 21:36:46 -0500 "The Four Filters of Warren Buffett and Charlie Munger" is now available on the Amazon Kindle Reader here: www.amazon.com/dp/B001...

The Paperback is available here: www.amazon.com/dp/0615...

And, the 70 minute abridged audiobook cd is available here: www.lulu.com/content/5...


Enjoy !






]]> http://seekingalpha.com/article/69566-the-four-filters-of-warren-buffett-and-charlie-munger?source=feed#comment-399083 399083 Sun, 22 Feb 2009 16:54:35 -0500
My book is now on audio cd here: www.lulu.com/content/5...
Runtime=70 minutes. Read by the author.

This is the abridged version of the book: "The Four Filters Invention of Warren Buffett and Charlie Munger".
This book examines each of the basic steps Buffett and Munger use in "framing and making" an investment decision. It is a focused look into an amazing invention within "Behavioral Finance."

I hope you like it!

Bud Labitan
frips.com
www.lulu.com/content/5...
]]> http://seekingalpha.com/article/69566-the-four-filters-of-warren-buffett-and-charlie-munger?source=feed#comment-238399 238399 Mon, 25 Aug 2008 10:35:56 -0400 "The Four Filters Invention of Warren Buffett and Charlie Munger"

www.amazon.com/gp/prod...

.]]> http://seekingalpha.com/article/69566-the-four-filters-of-warren-buffett-and-charlie-munger?source=feed#comment-225117 225117 Thu, 07 Aug 2008 11:24:58 -0400
www.lulu.com/content/3...

ISBN 978-0-6152-4129-6

Paperback book $32.95 Printed: 148 pages, 6" x 9", perfect binding,
cream interior paper (60# weight), black and white interior ink,
white exterior paper (100# weight), full-color exterior ink.

Description:
"The Four Filters Invention of Warren Buffett and Charlie Munger"
examines each of the basic steps they perform in "framing and making" an investment decision. This book is a focused look into this amazing invention within "Behavioral Finance." The genius of Buffett and Munger's parsimonious four filters process was to "capture all the important stakeholders" in a "multi-variable" equation or formula.
Imagine...Products, Enduring Customers, Managers, and Margin-of-
Safety... all in one mixed "qual + quant" formula. Other important
ideas are embedded in each chapter. The book can be used as a
supplemental textbook in a Valuation or Decision Sciences course.

]]> http://seekingalpha.com/article/69566-the-four-filters-of-warren-buffett-and-charlie-munger?source=feed#comment-182475 182475 Tue, 10 Jun 2008 10:28:37 -0400
I have had some interesting comments from a few bloggers who have not read my book. So, a brief response is posted here about what makes this book unique. On the surface, “The Four Filters Invention of Warren Buffett and Charlie Munger” at [frips.com] appears to be just a reiteration of Buffett and Munger ideas. But, a keen and perceptive reader will notice that it goes deeper than that. My book strives to prove that Buffett and Munger invented a unique Behavioral Finance Formula/Process composed of three qualitative steps and one quantitative step, that is underappreciated by the business and academic communities.

Read the summary a few times, and you will be motivated and hypnotized into thinking about ways we can “frame” our important decisions. How and Why? The book was designed to motivate ( like Jim Collins' book "Good to Great" ) as well as educate us into better framing of our other life decisions. This book is a subtle peek into their sensible and optimal thinking within Behavioral Finance. Also, my book includes my own valuation of Kraft, KFT; and a discussion of how the "Four Filters" are a unique invention in terms of Behavioral Finance.

And, there is a little morality tale embedded in the examination of "Able and Trustworthy" managers. In the chapter on "Able and Trustworthy Managers," I even included a small hypothetical section about how BRK could come under attack by Fund Managers backed by sovereign funds, after Warren and Charlie are with St. Peter. So, there are some hidden gems in the new text, but it requires some keen reading. The new book, "The Four Filters Invention of Warren Buffett and Charlie Munger" is a short story about how their process works in terms of framing and Behavioral Finance. The book does not need to be a best seller. I just want it to be judged as a work describing "great decision framing" and a historical step forward, underappreciated and underrecognized in the field of Behavioral Finance.

As far as Behavioral Finance, don't expect anything fancy. The book simply explains how each of the four filter steps acts like a method of "framing" a decision from different angles. Think U for Understanding Company and Products, SCA for Sustainable Competitive Advantage, ATM for Able & Trustworthy Managers, and MOS for Margin of Safety obtained from buying below Intrinsic Value.

The "Wow" moment comes when you realize that they (Buffett and Munger) designed a multi-variable BF formula that inclueds all the main characters necessary to have a successful and enduring business; (Products, Enduring Customers, Managers, and MOS).

audio summary: www.frips.com/4fsummar...

The readers gift is in reviewing this material and finding those little "hidden gems" embedded in the text; little "Easter Eggs" to reward the keen reader.

]]> http://seekingalpha.com/article/69566-the-four-filters-of-warren-buffett-and-charlie-munger?source=feed#comment-161292 161292 Sat, 03 May 2008 21:30:59 -0400
Brian Zen, CFA]]> http://seekingalpha.com/article/69566-the-four-filters-of-warren-buffett-and-charlie-munger?source=feed#comment-134315 134315 Mon, 31 Mar 2008 19:07:49 -0400
Keep doing the homework. It's not buy and hold, it's buy and homework.

Buffett the big guy can actively engage the management, you the small guy can sell if you don't like what the management is doing. ]]> http://seekingalpha.com/article/69566-the-four-filters-of-warren-buffett-and-charlie-munger?source=feed#comment-133920 133920 Mon, 31 Mar 2008 03:50:54 -0400
I think there are much easier lessons to be drawn from Buffett and Munger for the average investor. For example, Buffett's 20 punch card philosophy. Or Munger mental models approach to problem solving.

I think management is way too subjective for the average investor to figure out. Look at all the companies that have fudged the numbers, not expensed stock options, report ebita, etc. The press loves Buffett, and doesn't want to criticize him. But they don't follow up much about the management question.

For example, Buffett brings up Coke as a great company. But how do you know management will stay great? What if they do another "New Coke"? What if they get bored with soft drinks and get into something else?

Look at Bear Stearns. The CEO came out and said everything was fine. A few days later, the stock was at $5.

I think Buffett and Mungers genius is that they reduced investing down to the 4 filters. And then apply filters to those filters. Thus, they make very few decisions with a high degree of accuracy.]]> http://seekingalpha.com/article/69566-the-four-filters-of-warren-buffett-and-charlie-munger?source=feed#comment-130681 130681 Mon, 24 Mar 2008 13:29:37 -0400
Subjective(feelings)
I like his/her leadership and communication style. She or he makes me feel good about their prospects. He or she warns me about their competitive challenges ahead. KLM; Kings, Likables, & Morons.
Discard the bad ones quickly.

Objective(facts)
5-year R.O.E. is rising or falling?
FreeCashFlow to the firm is rising or falling?
Actions to maintain or improve profit margins?
Run your 4-Filters Formula Checklist.

Assessment(impression)
Is there enough here to watch this company or mark it “Too Tough.” Munger said that if it was “too tough” or “too complex,” then it goes in the wastebasket.

Plan
1.Discard or Study(monitor)
2.Buy or Sell


Thanks for the question. I hope you buy a copy of the book.
I am still negotiating with a publisher. Send me more feedback and I will put you on a notification of publication list.





]]> http://seekingalpha.com/article/69566-the-four-filters-of-warren-buffett-and-charlie-munger?source=feed#comment-130679 130679 Mon, 24 Mar 2008 13:24:21 -0400