The next best thing to getting stock suggestions from Warren Buffett is to understand the thinking process he and Charlie Munger use to make their investment decisions at Berkshire Hathaway. The Four Filters condenses an incredible amount of information on the Buffett and Munger thinking process into a very readable and understandable format. The Filters are essentially a checklist of criteria which are used at Berkshire Hathaway to sort through thousands and thousands of available investment options and then hone in and analyze the remaining candidates in more detail. If you'd like to think like Buffett and Munger, this well-crafted treatise will certainly help you.
- Rick Mayhew

Warren Buffett said that he is able to know if he is interested in buying a business in a matter of moments. Several businesses he has purchased were initiated with a phone call, letter, or meeting. Over the past 30 years he has shared his "secret" of how he filters information on his decision making process.

Buffett asks the following questions when considering an investment:
1- Can I understand it?
2- Does it have good management?
3- Does it have an enduring competitive advantage?
4- Can it be purchased at an attractive price?

Bud Labitan's book focuses on these four filters and expands on them. While Buffett has shared these ideas with anyone who would listen or read his letters to shareholders, I have not seen much written about them. Labitan has written a book just focusing on these four questions. It makes for a good refresher to experienced investors and a great starting point for those new to investing.
- Charles Mizrahi

I have a better understanding of the differences between market values and intrinsic values. This book has given me greater confidence in my approach to evaluating a business qualitatively and quantitatively. This book has a good valuation case example on Kraft, KFT. I am recommending this book to my family and friends.
- Rene T. Murillo, MD

At a time when the market has never been more tumultuous, this book cuts through much of the mystique that exists in how successful investors like Warren Buffet continue to outperform other investors and indexes. The author does an exceptional job of defining the criteria that investors should consider before investing.
- Tom Dabertin

Mr. Labitan has authored a wonderful addition to the value investing library. "The Four Filters" is today's "The Intelligent Investor" for the Grahem-Bufffett-Munger investing student. Mr Labitan's book lays out a clear, cogent, and concise case for Graham-Buffett-Munger investing that is the foundation of a successful investing career. "The Four Filters" equips an investor with an investing philosophy that will stand him/her in good stead during the inevitable market storms. The book is a rare combination of highly useful content and an enjoyable writing style. After finishing "The Four Filters" I hope that Mr.Labitan will follow it with the Graham-Buffett-Munger equivalent of Graham and Dodds "Security Analysis."
- Tom Murphy

Any Buffett follower know that Warren asks the following questions when considering an investment:

1- Can I understand it?
2- Does it have good management?
3- Does it have an enduring competitive advantage?
4- Can it be purchased at an attractive price?

But, what do those questions really mean and why do they matter so much? Many people think they may understand a business and it has good management but Bud goes into detail in those categories and expands on them allowing readers to understand what Warren looks for.

Perhaps the most difficult concept, because it is so easily confused is competitive advantage. I think the strength of Bud's book is making the concept as clear as possible for people to then be able to filter their own ideas through it. Without an advantage, a company purchased at an attractive price will most likely remain priced there for a long time.

I highly recommend this book,

Todd Sullivan, ValuePlays
- Todd Sullivan

Warren Buffett has said that investing is simple but not easy. But what does he mean by this? Mr. Labitan answers this question by doing a superb job in identifying and articulating the unique philosophy and methodology of two of the greatest investors in history. This philosophy and methodology for successful investing is what Mr. Labitan refers to as, "The Four Filters Invention of Warren Buffett and Charlie Munger," which he persuasively argues is innovative, effective, and underappreciated by the academic community. Additionally, he believes it is likely not clearly defined and recognized as a supremely important stock screening and selection tool in the minds of even ardent Buffett and Munger fans.

These four filters include:

1) Recognizing excellent companies which have an uncomplicated business model with superior products or services (Understandable first-class businesses).

2) Possessing a long-term sustainable competitive advantage (generally in the areas of supply, demand, or economies of scale).

3) With capable, candid, shareholder-oriented, and honest management.

4) Purchased with a "Margin of Safety," by buying only at a bargain price (buying the stock when the total market capitalization of the company is significantly less than a reasonable estimation of the intrinsic value of the company).

Intrinsic value is defined as, "the disounted value of the cash that can be taken out of a business over its remaining life." Mr. Labitan details the process of determining intrinsic value on a per share basis using Kraft as an example company.

I have read this book twice now, and in doing so have recognized many valuable nuggets of wisdom. This book also does an excellent job of incorporating and synthesizing a vast ocean of writings (from multiple authors whom Buffett and Munger admire) into important key concepts and specific methods for improving the likelihood of becoming a more successful investor. I highly recommend reading this wonderful book.

- Kurt Hoffmann