Inside the Investments of Warren Buffett by yefei lu

Book Summary – 

Yefei Lu presents a detailed, case-study-driven examination of twenty of Warren Buffett’s most significant investments spanning from the late 1950s through 2011, including holdings like Sanborn Map, See’s Candies, GEICO, Coca‑Cola, US Air, Wells Fargo, BNSF Railway, and IBM. Rather than offering a broad biography, Lu dissects each investment using original documents—like partnership letters, corporate reports, and industry data—to reconstruct the rationale that Buffett and his partners might have used at the time .

The book is divided into three chronological sections:

• The Partnership Years (1957–1968), covering early picks such as Sanborn Map, Dempster Mill, Texas National Petroleum, American Express, and Berkshire Hathaway itself.

• The Middle Years (1968–1990), including National Indemnity, See’s Candies, Washington Post, and GEICO.

• The Late Years (1990–2011), featuring investments in U.S. Air, Wells Fargo, IBM, Burlington Northern, and others .

Lu applies a consistent methodological lens—discussing qualitative context and quantitative valuation (often EV/EBIT)—to simulate what Buffett might have viewed in his analysis. He highlights Buffett’s evolving investment terrain: from deep-value bargains and activist stakes to selecting enduring businesses with durable moats. The final chapters synthesize broader lessons: Buffett’s preference for transparency, long-term compounding, and willingness to concentrate bets when the market misprices opportunity .

Critically, reviewers note that while Lu’s archival research and structured presentation are commendable, the book sometimes underplays Buffett’s failures or contexts—omitting notable missteps like Dexter Shoe or Tesco. Some case studies also vary in depth, leading analysts to suggest a shorter focused volume might have yielded deeper insights.

About the Author – 

Yefei Lu is a Frankfurt‑based portfolio manager at Shareholder Value Management AG, specializing in value investing across regions and industries. Prior to his current role, he advised a single-family office in Munich and worked at McKinsey & Company in Berlin. He holds a B.Sc. in Economics from Stanford University and an MBA from London Business School, blending rigorous education with hands‑on experience in investing and consulting