stock market invest trade forex money

Tenets of the Warren Buffett Way



Business Tenets
Is the business simple and understandable?
Does the business have a consistent operating history?
Does the business have favorable long-term prospects?

Management Tenets

Is management rational?
Is management candid with its shareholders?
Does management resist the institutional imperative?

Financial Tenets
Focus on return on equity, not earnings per share.
Calculate "owner earnings."
Look for companies with high profit margins.
For every dollar retained, make sure the company has created at
least one dollar of market value.

Market Tenets
What is the value of the business?
Can the business be purchased at a significant discount to its value?