The Warren Buffet Checklist

March 16th, 2018 | Tags: , | No Comments »

Warren Buffett and Charlie Munger have given us a check list for making an investment decision .

To quote Warren Buffet;
Charlie and I look for companies that have a) a business we understand; b) favorable long-term economics; c) able and trustworthy management; and d) a sensible price tag.

Buffett has also phrased the Four Filters as;
When buying companies or common stocks, we look for understandable first-class businesses, with enduring competitive advantages, accompanied by first-class managements, available at a bargain price.

This Formula first appeared in the 1977 Letter to Shareholders in this form:
We select our marketable equity securities in much the same way we would evaluate a business for acquisition in its entirety. We want the business to be (1) one that we can understand, (2) with favorable long-term prospects, (3) operated by honest and competent people, and (4) available at a very attractive price.