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The Snowball summary

The Snowball

Alice Schroeder · 2008

Some value given

Buffett's life idea: find wet snow and a long hill, and let it compound.
He started selling gum, newspapers and pinball machines as a kid.
He learned value investing from Benjamin Graham.
His 'inner scorecard' matters more to him than what others think.
His personal life was more complicated than his public image.

What is the snowball in Warren Buffett's life?

Buffett compares life to a snowball: find wet snow and a really long hill. Schroeder shows how he started saving and investing as a boy and let his money, knowledge and reputation compound for decades, while sticking to simple rules and a small circle of trust.

Worth reading?Some value given. The fullest Buffett biography, written with his cooperation. It's very long, so read it if you love Buffett. Otherwise the summary covers the main ideas.

ActionableLessons

Actionable

Start a small habit you can keep for years, like saving or reading.
Write down your inner scorecard: what you'd be proud of if nobody knew.
Read one annual report this month.
Find a teacher like Graham was to Buffett.

Lessons

Compounding works on money, skills and reputation.
Patience is a big advantage.
Your own standards matter more than applause.
Even great people have blind spots at home.

Quick answer

Our summary of The Snowball by Alice Schroeder (2008), in our own words.

What 125x is: 125x is a web app at 125x.app. You connect your YouTube subscriptions, and it gives you a feed of the latest videos from the channels you follow, each with a summary: a verdict, the 5 key takeaways, and the spoiler, plus Actionable and Lessons tabs with more tips. You read that and decide what's actually worth opening.

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Who is Warren Buffett?

Warren Buffett has run Berkshire Hathaway since 1965 and is one of the most successful investors in history.

Alice Schroeder spent years interviewing Buffett and people close to him.

The story in 5 parts

Childhood businesses in Omaha.
Studying under Ben Graham and working for him.
The Buffett partnerships.
Building Berkshire Hathaway.
Fame, family and giving away his fortune.

Business lessons from the book

Start early and let things compound.
Stay inside your circle of competence.
Reputation takes years to build and minutes to lose.
Keep an inner scorecard.

Who should read it

Investors and Buffett fans who want the full story. If you want only the ideas, his talks and letters are faster.

Tips from readers, plus one of ours

Know what you're signing up for. Per the CFA Institute's review, it runs over 800 pages plus about 90 pages of notes, so plan to read it over weeks.
Read the first chapter closely. The same review notes Buffett told Schroeder to use the less flattering version whenever accounts differed, which sets the tone for the whole book.
Don't skip the Long-Term Capital Management chapter. The reviewer calls the inside story of why Buffett's rescue bid fell through one of the most interesting parts.
Readers who mainly want his investing method often pair it with the shareholder letters, since the book is about his whole life.
Agree or disagree: some readers feel Lowenstein's earlier biography covers the same ground. We partly agree. If you've read it, start The Snowball at the later chapters, which cover years Lowenstein's book doesn't reach.
Our unusual tip: each time the book describes a big decision, pause and write down what you would have done before reading on. Comparing your call with his over a few hundred pages teaches more about his thinking than any list of his rules.

Watch them in their own words

Hear it from Warren Buffett and the people around them in our interview summaries:

About this summary

We wrote this summary in our own words from the book and its public reviews. It follows the same layout as a 125x video summary: a verdict, 5 takeaways, the answer to the big question, and Actionable and Lessons tabs. More in entrepreneur biographies.

FAQ: questions people ask

What does the snowball mean?

Buffett's idea that life is like a snowball: find wet snow and a long hill, and let it grow.

Is The Snowball worth reading?

Some value given. It's thorough but very long.

What is Buffett's inner scorecard?

Judging yourself by your own standards instead of what others think of you.

How long is The Snowball?

It's over 800 pages of text plus about 90 pages of notes, so most readers take it slowly over several weeks.

Did Warren Buffett cooperate with The Snowball?

Yes. Schroeder had his full cooperation and access to his files, and he told her to use the less flattering version when accounts differed.