1 Key Criterion Warren Buffett Looks for in His Investments

traveleat123
2022-09-13

Here is one important factor that the Oracle of Omaha looks for in the investments he makes

Warren Buffett’s track record makes him one of the investing community’s all-time greats.

From 1965 to 2021, he generated an incredible annual return of 20%.

In Buffett’s 1989 letter to his shareholders, he shared his key considerations when evaluating a company as an acquisition opportunity.

Buffett believes that having a capable management team is critical for the success of any business.

Ensure management is capable and hardworking

As share investors, a listed company will often have a management team in place, so this is not something we have to worry about.

But, you do need to make sure that any company you’re interested in investing in has a good management team in place.

A lousy management team will end up destroying shareholder value over time while a great one can help you to compound your wealth many times over

Source: The smart investor, 8 Sep 2022

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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