Investment criteria – Buffettpedia

Warren Buffett and the Interpretation of Financial Statements

July 12, 2024

If you have been reading legendary investor Warren Buffett’s value investment philosophy and wonder how to put two and two together, one recommended book for reading is “Warren Buffett and the Interpretation of Financial Statements” by Mary Buffett and David Clark. Written in simple and easy to understand language, the book guides you through the…

Stock selection for defensive investors: seven criteria

June 23, 2024

In his book, The Intelligent Investor, Benjamin Graham suggested seven quality and quantitative criteria for the selection of common stocks for a defensive investor’s portfolio. The seven suggested criteria are: Let’s zoom in on criteria (6) and (7) above. Moderate ratio of price to assets: Current price of stock should be no more than 1.5…

Understanding Warren Buffett’s moat strategy

May 6, 2018

Warren Buffett’s long-held “moat” strategy has come to the fore in the wake of an argument between the legendary investor and Telsa’s Elon Musk. A CNBC report (Warren Buffett responds to Elon Musk’s criticism: ‘I don’t think he’d want to take us on in candy’) quoted Telsa’s Musk as saying this week that “moats are lame”…

Buffett, Munger have harsh words for cryptocurrency

Berkshire Hathaway chairman Warren Buffett minces no words when it comes to cryptocurrency, calling bitcoin “probably rat poisoned squared” and his right-hand man, Charlie Munger, has even harsher words, saying “it (cryptocurrency) is like someone else is trading turds and you decide I can’t be left out”. A Yahoo Finance May 6, 2018, report (Why…

Berkshire Hathaway takes a bigger bite of Apple, dumps IBM

May 5, 2018

Warren Buffett’s Berkshire Hathaway bought an additional 75 million shares of Apple in the first quarter of 2018, while dumping its remaining stake in IBM, said a Bloomberg May 4, 2018 report (Buffett Buys a Further 75 Million Apple Shares, Sells Out of IBM). The report quoted the Berkshire Hathaway chairman as having said in…

What stocks to buy: 15 points to look for

April 30, 2017

“What are the matters about which the investor should learn if he is to obtain the type of investment which in a few years might show a gain of several hundred per cent, or over a longer period of time might show a correspondingly greater increase? ” In other words, what attributes should a company have to give…

When it comes to stocks, Berkshire Hathaway looks for wonderful companies

March 7, 2017

“Woody Allen once explained that the advantage of being bi-sexual is that it doubles your chance of finding a date on Saturday night,” Warren Buffett said in his FY2015 letter to Berkshire Hathaway. Why did the Berkshire Hathaway chairman say this? “In like manner – well, not exactly like manner – our appetite for either…

Benjamin Graham on stock selection for the defensive investor

July 26, 2015

The Intelligent Investor Chapter 14 – Stock Selection for the Defensive Investor 1. Adequate Size of the Enterprise The idea is to exclude small companies which may be subject to more than average vicissitudes especially in the industrial field. Not less than US$100 million of annual sales for an industrial company and, not less than…

Mr Market a Drunken Psycho: Warren Buffett

January 17, 2015

Legendary investor Warren Buffett, the Sage of Omaha, recently referred to Mr Market as the “Drunken Psycho”. Aspiring value investors need to know who Mr Market is to understand why Warren Bufftett calls him a Drunken Psycho. Warren Buffett has in a letter to Berkshire Hathaway also called Mr Market the poor fellow with incurable emotional…

Walter Schloss stock market secrets

January 15, 2015

In a note dated March 10, 1994, Walter Schloss, a famous value investor named by Warren Buffett in 1984 as one of the superinvestors, listed 16 “Factors Needed To Make Money In The Stock Market”. Walter Schloss (August 28, 1916 – February 19, 2012) was a notable American value investor who was one of the famous…