THE BUFFETT
REPORT

The Investing Secrets of
Warren Buffett
—and how to profit from them

By Professor John Price
“After only a few days, we came to the conclusion that we
could have saved a lot of our clients’ money if we used these
methods.”
─ Ron Boer, Managing Director, Asset Management, The Netherlands
Mild Mannered Professor from Sydney, Australia,
finds the keys to the stunning success of the
world's greatest investor.
THE RESULT IS …

The Buffett Report
The Investing Secrets of Warren
Buffett
—and how to profit from them

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If you want to be among the few investors in being able to
implement these simple common-sense Buffett-style criteria…
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help. The reason is that a few floors above are the offices of Berkshire
Hathaway, the US$115 billion dollar company controlled by Warren Buffett.
Without an invitation, this is as far as you will get.
W
With just 15.8 employees (the 0.8 represents a part-timer) Berkshire Hathaway
oversees investments in 27 public companies ranging from American Express to
Zenith National Insurance. It also has full ownership of 65 private companies
ranging from Acme Building Brands to XTRA.
Warren Buffett is acknowled
g
ed b
y
investors
around the world as the world’s greatest investor.
Suppose someone had the good sense to invest $10,000 i
n
one of Buffett’s original partnerships back in 1956 whe
n
they first started. And suppose that when the partnerships
terminated in 1969, this person reinvested the proceeds i
n
Berkshire Hathaway. Today that person would be wort
h
over $280 million—after all taxes and expenses.

But there is much more to Warren Buffett. His integrity and no-compromise
approach to government and business follies has given him an increasingly high
profile in the press. Recent articles on and by Buffett include: Dividend Voodoo
(Washington Post), Avoiding a Mega-Catastrophe (Fortune), The Warren
Buffett You Don’t Know (Business Week) and Buffett: The Oracle of

Buffett still lives in the Omaha house he purchased for $31,500 in 1958 and
refuses to adopt many of the spending patterns often practiced by the very
wealthy (excluding, at one point, his purchase of a corporate jet nicknamed The
Indispensable).
Overall, Buffett is often described as a simple, unassuming man whose ideas
about life are as interesting as his thoughts on business. He pays little attention
to appearances, is passionate about his work and family, loves to play bridge,
fanatically consumes Cherry Coke, hamburgers and popcorn ─ and just happens
to be the world’s wealthiest and most successful investor.
_________________________________________________________________
Dear Fellow Investor,
I am very excited about this report. I had an earlier report but I didn’t think that it
really brought out the powerful principles which I had uncovered in Warren
Buffett’s methods. It didn’t do justice to Buffett, nor did it do justice to what I
knew of his methods. Then I woke at 4.00am one Saturday morning and realized
that the only way to describe the results of my years of researching Buffett’s
methods was in terms of secrets.
Immediately I grabbed a pad and starting writing these secrets down. Even the
way I did this was out of character for me. I almost always do all my writing on a
computer. But at this moment I was so excited I could not even wait for my
computer to boot up.
Sometimes I refer to them as principles. But the overriding sense I had as I was
writing away with a rug around my shoulders was in terms of secrets. It was as if
on one hand Buffett was explaining what he was doing in his various writings
but on the other he was always holding something back. His innate
competitiveness was resulting in something like those magic pictures: everything
was there but until you viewed it from the right angle it didn’t quite make sense.
Or even worse, what you were seeing on the first view, or even the second or
third or later views, was quite different from the final image.
© 2004 Conscious Investing www.buffettsecretsrevealed.com

As we go through them I will explain how each one can be implemented in
minutes in a practical way using Conscious Investor.
In this Special Report you will discover:
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The Buffett criteria for great companies.
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How you can cut painstaking research down from months to just minutes.
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Independently audited performance figures of my own portfolio showing
how it returned an average of 19.45% per year compared to 2.82% per year
for the S&P 500 between June 1997 and November 2003.
1

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How a study by Ed Kelly of Trinity College, Ireland, revealed a 10-year
average return of 17.3% per year compared with 10.22% per year for the
S&P 500 over the same period.
¾
How this portfolio took less than 90 seconds to obtain using my system, and
how, once purchased, no more transactions were carried out for the next ten
years.

1
Historical performance described here and elsewhere in the report is not a guarantee that such
performance will be maintained in the future.
© 2004 Conscious Investing www.buffettsecretsrevealed.com
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THE BUFFETT REPORT

¾

It’s amazing!
In 47 years, Buffett’s investment company, Berkshire Hathaway has achieved
returns of 259,485% versus the S&P 500 returns of 4,783%.
The difference in
results is an astonishing 254,747%!
An Obsessive Crusade
Have you ever wondered how a quiet and thoughtful man from Omaha,
Nebraska, started out with US$100,000 and built it up through both bull and bear
markets to an enormous $42 billion fortune?
Have you ever thought to yourself that there should be a way for the average
investor and money manager to emulate the common-sense, down-to-earth
techniques that Warren Buffett practices?
If so, you’re certainly not alone and this is why this may well be the most
important report you will ever read….
© 2004 Conscious Investing www.buffettsecretsrevealed.com
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THE BUFFETT REPORT

Most Admire Warren Buffett, But Few Try
To Copy His Results.
Warren Buffett has been talking about his methods for decades — but few even
make the attempt to understand what he is doing. “I have seen no trend toward
value investing in the 35 years I’ve practised it,” Buffett declared some years
back in the Chicago Tribune. “There seems to be some perverse human
characteristic that likes to make easy things difficult.”
Most investors and fund managers are still caught in the impossible trap of trying
to make quick money in the stock market. Preferably overnight.
Generally when investors want to achieve better than average returns, they
speculate…or invest in marginal stocks…or trade more often (incurring ever
greater transaction costs and taxes).

Because Until Now It’s Been Too Hard…
I would be deceiving you if I said that any everyday investor and fund manager
could just arbitrarily invest in household companies and make billions of dollars.
That’s not realistic. The key is to take Buffett’s philosophies, and also have a
detailed roadmap for how to implement them.
This is where it gets a bit awkward and controversial.
You see, Warren Buffett, for all his candor and accessibility, is actually quite
secretive about the nuts and bolts of how he achieves his results. He is very open
about his methodologies but only in vague terms. The key to investing like
Buffett is to understand that he has a few jealously guarded secrets of
extraordinary power. Principles that, quite frankly, he doesn’t reveal to anyone
except, on occasions, in sweeping generalities.
Buffett makes no bones about keeping his best strategies close to his chest. In
fact, here’s a direct quote from his famous Berkshire Hathaway shareholder
letters:
Despite our policies of candour, we will discuss our activities in
marketable securities only to the extent legally required. Good
investment ideas are rare, valuable, and subject to competitive
appropriation just as good product or business acquisitions are.
Who can really fault Buffett for being secretive about his ideas? I certainly don’t.
The good news for you is that I’ve spent the past 11 years of my life singularly
focused on discovering these “missing ingredients” that Buffett does not reveal!
Now I’ve found them. Even more, I’ve simplified these ingredients to make
them easy to apply, I’ve systematized them to give you confidence and I’ve
automated them to save you time. With Conscious Investor you can now begin
immediately to emulate Buffett’s most powerful strategies. It works equally well
for fund managers, financial professionals or novice investors.
Before looking at the secrets, I would like to take about some of the fears that
people have regarding the stockmarket.
Fear of the Stockmarket

His savings and investments were too high for his wife and himself to get
government support, but not high enough to enable them to live a comfortable
life free from nagging money difficulties. He would spend hours going over his
share portfolio or attending investment seminars. But so often the advice he was
given was confusing, tainted or self-serving. I believe he died earlier than would
be expected because of these worries.
I have also experienced these fears and doubts first hand. Did I stay in academia
with its modest, but comfortable, retirement plan? Or did I follow my heart, first
to move to the USA to work as a volunteer and then to set up my own businesses
in the USA and Australia.
It was only after my father’s death that I started work on understanding Warren
Buffett. This led to my setting up my own companies to implement the results of
my research. Conscious Investor was born. When people subscribe to Conscious
Investor, I often feel that I can hear their sighs of relief when they see how
completely through Conscious Investor we take care of solving their investment
problems in such a common-sense, rational, down-to-earth manner.
For example, a new subscriber, Linda Weise wrote recently, “I realised how
much I had absorbed and learnt since getting this program at the beginning of the
year. I am very grateful for the work you have put into the development of
Conscious Investor and the honesty and integrity you display.”
As you go through the first three investing principles, you will see how we
implement each one in Conscious Investor. More importantly, you will see how
all the above fears are effortlessly solved, or dissolved, using Conscious
Investor. Putting it briefly, Conscious Investor provides a total investment
approach that eliminates these fears right at their base.
© 2004 Conscious Investing www.buffettsecretsrevealed.com
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THE BUFFETT REPORT

One more thing is that in this report I have only scratched the surface of the

products stay fairly constant? What competitors does the store have and what
distinguishes it from them? What would be the most worrying thing about
owning such a store?
This leads to the idea of looking for companies that have a strong and durable
economic moat. Just as castles have moats to protect them from invaders, so
companies can have economic moats to protect them from challenges of
competitors and changes in consumer preferences. The moat can be made up of
attributes such as brand name, geographical position or patents and licences.
All these principles about purchasing businesses are equally applicable to
purchasing shares. It becomes one of the most enjoyable parts of investing to
look into the “business” aspects of any company that you are considering adding
to your portfolio.
© 2004 Conscious Investing www.buffettsecretsrevealed.com
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THE BUFFETT REPORT

Implementation using Conscious Investor
There are many ways that we help people with Conscious Investor to implement
Buffett’s method of thinking in terms of “buying the whole company”. We look
at three of them. For a start we provide a Watch List of quality companies in
Australia and North America with analyses of their businesses and check lists of
their features including their economic moats. Secondly, we also have a
Members’ Forum where people discuss the attributes of different companies.
Thirdly, we provide regular twelve page analyses of key companies in Australia
and North America.
Conscious Investor also provides the ability to scan thousands of companies to
locate those with superior financial characteristics as described by Warren
Buffett.
Secret #2: Don’t invest for ten minutes if
you’re not prepared to invest for ten

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This graph is of the earnings per share
of a company. If you were buying a
company, this is just what you would
want — a company whose earnings
and sales go up like clockwork by 15
or 20 percent or more each year. It is
no different when you invest in
companies via the stock market.

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prices on any given day.”
Even though we focus on the long-term, the investment is even more profitable if
we purchase the stock during one of its drops. Buffett has said that even for the
best of companies, you can still pay too much.
Implementation using Conscious Investor
There are two key features of the growth in sales and earnings: the rate of growth
and the stability of the growth. Conscious Investor provides proprietary tools to
measure both of these for thousands of companies. In a matter of seconds you
can hone in on companies with the desirable features of high and stable
growth. When you put together a portfolio of such companies, then your growth
in wealth follows automatically.
But there is more. A second feature of Conscious Investor is a proprietary tool to
help locate those special buying opportunities when there is a temporary drop in
the price even while sales and earnings are moving ahead.
Another high-performance outcome from using these tools in Conscious Investor
is that you can make forecasts of earnings with five times the accuracy of
analysts. In my free mini report Earnings Forecasts Made Easy, you’ll learn how
© 2004 Conscious Investing www.buffettsecretsrevealed.com
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THE BUFFETT REPORT

easy it is for you to be your own best analyst. You can see the report at:
www.buffettsecretsrevealed.com/articles/forecasts.pdf
Even though Buffett’s aim is to hold shares for the rest of his life, when the
profit is there, and the share price has outpaced the value of the underlying
business, then he sometimes takes it.
The exciting thing about value long-term investing is that, time and time again,
you outperform the market in the short term as well as in the long-term. If you
own shares in a portfolio of great companies with sales and earnings moving
upwards that you bought at sensible prices, then it often doesn’t take long to

This is one of the main reasons why I developed Conscious Investor—to
overcome these problems.
Implementation using Conscious Investor
One of the many ways that Conscious Investor helps you find “screaming
bargains” is based on the fact that it has built into it a range of key criteria used
by Warren Buffett to make selections. Either looking at the market as a whole, or
© 2004 Conscious Investing www.buffettsecretsrevealed.com
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THE BUFFETT REPORT

sector by sector, you can instantly scan through ten years of corporate data on
every Australian stock, around 6,000 USA stocks and 3,000 Canadian stocks to
locate companies that satisfy these criteria at different levels. In seconds you can
filter thousands of stocks down to a handful that have the hallmarks of profitable
“Buffett” investments.

“As a program, Conscious Investor is excellent, but as a philosophy, it is
even better. It is a living investment philosophy, instead of just a software
tool.” — Bob Sykes, United Kingdom
Putting it into Practice
What I have described above is an introduction to the first three investing secrets
of Warren Buffett and a brief glimpse into the power of Conscious Investor to
implement them. But we live in a world where every minute is precious and we
want to verify everything by results. This suits me perfectly.
As I said at the start of this report, I am not interested in abstract theories or
knowledge for its own sake. When I understand something I want to convert it
into practical applications and I want to share it as widely as possible.
This is how Conscious Investor got started. At first I developed it for my own
investing. And you will see later just how successful this has been. Then once I
had tested it to my own satisfaction, I wanted to put it into a form that everyone