Investing Wisdom Series 7: Key Factors to keep in mind before buying – Buffett [4 Mins]

“To ascertain the probability of achieving a return on your initial stake, Buffett encourages you to keep four primary factors clearly in mind:

  1. The certainty with which the long-term economic characteristics of the business can be evaluated

  2. The certainty with which management can be evaluated, both as to its ability to realize the full potential of the business and to wisely employ its cash flows

  3. The certainty with which management can be counted on to channel the rewards from the business to the shareholders rather than to itself

  4. The purchase price of the business


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