How to Invest Like Warren Buffet
Even though I’m nowhere near being the 3rd richest, let alone the 3,000,000 richest, there were some great takeaways I read in this morning’s Globe and Mail. Even though I don’t have any immediate intentions to buying a business and I don’t consider myself at risk for buying a business I don’t understand, there were still some good concepts here. I’ll list them out:
- Buy businesses with a sustainable competitive advantage – for me this translates into not buying that $4000 sound system
- Don’t buy businesses you don’t understand
- Look for consistently high return on equity
- Beware of debt
- Avoid commodity businesses
- Look for increasing profit margins
- Think like an owner
- Buy at a discount
- Focus on the long-term
read the full article at http://www.theglobeandmail.com/globe-investor/investment-ideas/features/investor-clinic/how-to-invest-like-buffett/article1358889/ and let us know what you think! Great stuff!
