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This is the third book Robert G. Hagstrom, manager of the Legg Mason Focus Trust fund, has written on the investment principles and practices of Warren Buffett. It duplicates much of the material in his The Warren Buffett Way (Wiley, 1994) and The Warren Buffett Portfolio (Wiley, 1999). Hagstrom clearly and effectively lays out Buffett's investment strategy. First, analyze a stock as a business. Second, purchase a stock when its price is below its fundamental value. Third, hold just a few stocks in your portfolio. And fourth, avoid speculation. The only completely new material is in the last chapter, which argues that, although Buffett himself avoids investing in these areas, his principles can be applied to technology, small cap, and international stocks. Of course, the best way to invest like Warren Buffett is to purchase shares in Berkshire Hathaway. Hagstrom promulgates the unfortunate view that investing is about beating the market rather than meeting your own short and long run savings goals. After all, beating the market is difficult. As of April 30, 2001, Hagstrom's own fund has lagged the S&P 500 over the previous one, three, and five year periods.

David A. Latzko Business and Economics Division Pennsylvania State University, York Campus office: 13 Main Classroom Building phone: (717) 771-4115 fax: (717) 771-4062 DXL31@psu.edu www.yk.psu.edu/~dxl31