It does not take long after listening to one of the greatest minds in the investment world to quickly understand his main rules of investing and where they came from.
Warren Buffett claims, rightfully, that he cannot predict the future, one day, one week or even one year. He is not a fortune-teller, but he is a fortune creator, especially if you listen to and follow his reasoning.
Mr. Buffett believes that you have a good company if it has good management, first and foremost. You should also like what they’re doing and if they’ve been able to weather the storms, you may want to invest in them. He has become a master at analyzing companies and his investment strategy is based on that principle. He does not buy pretty names, trends, or big ideas. Research trumps emotion. Never trade on emotion.
He invests in well-managed companies and he sticks with them for the long haul.
Very straightforward; find companies with good management and the ability to weather the storms and stick with them.
If you’re take on Mr. Buffett is different than mine, please chime in below in the comments.