The Essays of Warren Buffett

Reviewed by Diario de un Inversor · UpdatedJune 13, 2026

Our review

«The Essays of Warren Buffett» is not a book Buffett wrote for publication: it is a thematic selection of his annual letters to Berkshire Hathaway shareholders, compiled and organized by Professor Lawrence A. Cunningham. The first edition was published in 1997 and has been revised several times to incorporate more recent letters. This distinction of origin matters: the reader does not access an argument constructed for effect but the reflections of an active manager addressed to his owners, with the candor that relationship produces. Cunningham organizes the material into thematic sections — corporate principles, finance and accounting, investment alternatives, mergers and acquisitions, creative accounting — making non-linear reading straightforward. What emerges is a coherent philosophy: value businesses based on their real long-term earnings rather than their market price, distrust managers who prioritize short-term results, and treat shares as stakes in a real business. The book requires some familiarity with accounting and financial concepts; it is not a starting point for the beginning investor. Its primary value is letting readers understand Buffett's internal logic in his own words, without intermediaries.

Key takeaways

• The price paid for a business is the primary determinant of the final return on the investment, regardless of business quality.
• Creative accounting and financial engineering practices are warning signs a value investor must know how to identify.
• Honest management aligned with shareholders is as important as business fundamentals when evaluating an investment.
• The long term is not an excuse to hold bad investments — it is the horizon over which good businesses compensate for the price paid.

Fact

The book is a compilation of annual shareholder letters from Berkshire Hathaway, edited by Professor Lawrence A. Cunningham; the first edition was published in 1997.