Warren Buffett invests in businesses, not stocks. Warren only invests in a business he understands. Warren also wants to know the company's competitive advantage, and he wants to make sure the business will be worth more in 5-10 years than what he pays for it today.
Warren Buffett invests in businesses, not stocks. Warren only invests in a business he understands. Warren also wants to know the company's competitive advantage, and he wants to make sure the business will be worth more in 5-10 years than what he pays for it today.
Investing in a business is a lot more than algorithms and revenue charts. A business can look great on paper but be going up in flames internally, which is why it’s so important to do research into the types of people running the company as well as how the industry overall is operating. The business of investing can be a buyers and sellers’ market, so always pay attention to indicators of a struggling company during any market, bear or bull, that won’t be able to return your investment. Business is never just about business. It’s a people game and you need to be able to read others and their body language if you want to make smart decisions with your money. If you’re considering investing in a business, look beyond the company and into the industry and the employees.
If you’re considering investing in a business, look beyond the company and into the industry and the employees.