Warren & Charlie
Buffett’s rule for buying stocks/business, he will only buy a business
1. He can understand (he understands roughly 10% of all business);
2. A business has moat, or durable competitive edge;
3. A good management team (motivated, they work because of passion for the job, not for financial incentives);
4. At an attractive price.
Because his Berkshire empire is so big now, he only looks at bigger companies so that it could have some meaningful impact on BRK top/bottom line. We as small investors don’t have this constraint.
Master pieces by Buffett and Munger
Buffett annual letters to shareholders
Buffett Univ. of FL talk (PDF)
Buffett and Munger Q&A on 2008 shareholder meeting (gurufocus)
The art of picking stocks (Charlie Munger)
Human Misjudgement (Charlie Munger)
