Business Tenets:
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Is the business simple and understandable?
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Does the business have a consistent operating history?
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Does the business have favorable long-term prospects?
Management Tenets:
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Is management rational?
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Is management candid with its shareholders?
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Does management resist the institutional imperative?
Financial Tenets:
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Focus on return on equity, not earnings per share
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Calculate “owner earnings”
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Look for companies with high profit margins
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For every dollar retained, make sure the company has created [or can create] at least one dollar of market value
Market Tenets:
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What is the value of the business?
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Can the business be purchased at a significant discount from its value?
Finally Buffett – Is it a good Investment?