The Essays of Warren Buffett: Lessons for Corporate America – Warren E. Buffett & Lawrence A. Cunningham
1. Full Citation
Buffett, W.E. and Cunningham, L.A. (2001, revised 2021) The Essays of Warren Buffett: Lessons for Corporate America. 5th edn. Wilmington, DE: Carolina Academic Press.
2. Introduction
The Essays of Warren Buffett compiles four decades of Warren Buffett’s shareholder letters, curated and thematically organised by law professor Lawrence Cunningham. The collection offers rare insight into Buffett’s investment philosophy, management style, and views on corporate governance. Unlike most investment books, this work is neither instructional nor theoretical, but reflective and pragmatic—demonstrating how Buffett’s adherence to value investing, integrity, and long-term thinking created one of the most successful enterprises in history. It serves as both a corporate handbook and an investor’s manifesto.
3. Author Background and Credentials
Warren E. Buffett is the chairman and CEO of Berkshire Hathaway, widely recognised as one of the most successful investors of all time. His investing career is shaped by the teachings of Benjamin Graham and Philip Fisher.
Lawrence A. Cunningham is a professor of law at George Washington University and a prolific scholar on corporate governance. His editorial role distils Buffett’s writings into an accessible and thematic format without altering their tone or content.
4. Summary of Contents
The book is divided into thematic sections reflecting Buffett’s consistent principles across decades of business practice:
- Corporate Governance and Management
- Emphasises decentralisation, autonomy, and managerial trustworthiness. Buffett advocates for board independence, long-term vision, and ethical leadership.
- Finance and Capital Allocation
- Clear-eyed analysis of retained earnings, return on equity, and the importance of reinvestment over distribution when returns are superior.
- Mergers and Acquisitions
- Warns against deal-making for growth’s sake, criticising investment bankers’ incentives and emphasising intrinsic value over synergy hype.
- Investment Philosophy
- Strongly grounded in Graham’s value investing—focusing on buying businesses, not stocks, and demanding a margin of safety.
- Accounting and Reporting
- Opposes earnings manipulation and encourages owner-oriented, transparent reporting of business performance.
- Corporate Culture and Shareholder Relations
- Advocates for treating shareholders as partners and prioritising candour, patience, and intellectual honesty.
The overall tone blends wit and wisdom, using real Berkshire Hathaway examples to illustrate both successes and cautionary tales.
5. Critical Evaluation
a. Coherence and Argumentation
Buffett’s arguments are consistently rational and principle-based. Despite covering a wide range of topics, his voice remains steady: a call for integrity, patience, and understanding the business, not just the numbers.
b. Originality and Intellectual Contribution
Rather than advancing new theories, Buffett offers deep practical insights into applying known principles. His emphasis on shareholder alignment and ethical capitalism is increasingly influential in modern corporate thinking.
c. Evidence, Sources, and Method
The essays are grounded in decades of real business cases, shareholder letters, and transactional decisions. They offer transparent reasoning and post-hoc reflections, unique in the investing world.
d. Style and Accessibility
Buffett writes with clarity, humour, and humility, making complex financial ideas understandable to lay readers. Cunningham’s structure further enhances usability and thematic coherence.
e. Limitations and Critiques
Some critics argue that Buffett’s ideas may be less replicable in the modern fast-paced, tech-heavy market. Others find that the book reflects Buffett’s unique circumstances, limiting broader applicability.
6. Comparative Context
Compared with:
- The Intelligent Investor – This is Buffett’s application of Graham’s theory
- Common Stocks and Uncommon Profits – Buffett synthesises Fisher’s qualitative focus
- The Warren Buffett Way – Hagstrom’s analysis, while valuable, lacks Buffett’s own prose and clarity
This collection is authentic Buffett, offering not interpretation but first-hand philosophy.
7. Thematic or Disciplinary Relevance
The essays are relevant to:
- Corporate governance and business ethics
- Investment strategy and shareholder communication
- Finance, law, and capital markets
- MBA and law courses in business leadership
It is one of the most assigned texts in both investment training and leadership programmes.
8. Reflection or Practical Application
Readers gain a real-world template for managing capital, selecting companies, and treating stakeholders with honour. It’s a masterclass in temperament, patience, and strategic clarity from a business icon.
9. Conclusion
The Essays of Warren Buffett is a landmark work in investment literature—not as a how-to guide, but as a testament to principled, rational capitalism. It captures the essence of Buffett’s success: clear thinking, ethical leadership, and unwavering commitment to long-term value.
Recommended for: Investors, business leaders, MBA students, corporate directors, and anyone interested in the intersection of capitalism and character.
10. Other Works by the Same Author
- Berkshire Hathaway Shareholder Letters (1977–Present)
- Berkshire Hathaway Annual Meeting Transcripts
- Ground Rules: Buffett Partnership Letters (edited by Jeremy Miller)
11. Similar Books by Other Authors
- Robert Hagstrom – The Warren Buffett Way
- Howard Marks – The Most Important Thing
- Charlie Munger – Poor Charlie’s Almanack
- John Bogle – Common Sense on Mutual Funds
12. References (only if external works are cited)
- Graham, B. (1949) The Intelligent Investor
- Fisher, P.A. (1958) Common Stocks and Uncommon Profits
- Cunningham, L.A. (2021) The Essays of Warren Buffett