Here's what Warren Buffett look for :-
- monopoly businesses (or best of breed company in that industry)
- consistent yearly Return on Equity of 15% or better. (if you want to make 15%+ return on your investment, let's make sure the company can too)
- consistent yearly earnings growth- great management (thinks like a shareholder)
- understandable business with good future long term prospects
- selling at a discount (figuring out the compounded rate of return based on future earnings growth and the future p/e multiple)
Best advice according to Warren Buffett "investment is most intelligent when it is most businesslike".
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