Recently Mr Buffett is in the news again for declines in Brk, so i wanted to share some summaries of his value investing philosophy

(1) Principle of Business -

Focus on three fundamental characteristics of a company: whether the business is easy to understand; whether the company has a history of stable past performance; and whether the company has a favorable long-term growth outlook.

(2) Principle of Management -

There are three important characteristics of top management: the ability to make rational decisions; the importance of being honest with shareholders; and the ability to resist the "herd mentality" of institutional investors.

(3) Principle of Finance -

Four important financial policies that companies should follow: focus on shareholder return on equity rather than earnings per share; calculate the value of shareholder returns; seek out companies with high profits; and for every dollar of retained earnings, the company should create one dollar of market value.

(4) Principle of Market -

Two guiding principles of cost: evaluate the intrinsic value of the company; and buy the company's stock when the stock price is lower than its intrinsic value.