Those interested in how Warren Buffett, one of the world's best known investors, picks his stocks will be pleased to hear that a new book, The Warren Buffett Portfolio, is on the way. Written by Robert Hagstrom, it aims to show how to create a winning portfolio from only a handful of companies whose management and financial positions offer the most positive financial prospects.

Hagstrom's first book, The Warren Buffett Way, proved a best-seller, shifting more than 600,000 copies worldwide as many investors sought to learn the techniques used by the man with the Midas touch.

The new book, which will be published in May, will explore the principle of focus investing.

Focus investing involves choosing a few stocks that are likely to produce above-average returns over the long haul, concentrating the bulk of your investments in those stocks and having the fortitude to hold steady.