- Only buy simple businesses that you understand
- has favorable long-term prospects
- demonstrates consistent earnings power
- earning good returns on equity with little or no debt
- competent and honest management
- available at an attractive price(margin-of-safety) for large purchases
and also possess the followings characteristics:
- be passionate about investments
- think of stock as part ownership of a business
- be happy to own the business even if the market is closed for a few years
- ignore the price movements and walk away if you don't like the price
- have great patience-buy and wait for many years
- be greedy when everyone is fearful
- have a deep pocket
- takes home US$100,000 but ignore reaping investments that's worth billions of dollar
- likes burgers, See's candies, Wrigley, Mars and coke
- born at the right place and at the right time
- have a good partner like Charlie Munger
- owns a cash cow like GEICO
and finally, you must live as long as Warren Buffett!
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