When you look for attractive investment opportunities, you might have taken a deeper look at the activities of the professionals like George Soros, Bill Ackman or Warren Buffett.
Warren Buffett is one of the most respected investors in the world and his investment criteria are simple: Buy a growing business with inimitable assets at a reasonable price. Here are his criteria from his annual letter in detail:
Warren Buffett is one of the most respected investors in the world and his investment criteria are simple: Buy a growing business with inimitable assets at a reasonable price. Here are his criteria from his annual letter in detail:
(1) Large
purchases (at least $75 million of pre-tax earnings unless the business will
fit into one of our existing units),
(2) Demonstrated
consistent earning power (future projections are of no interest to us, nor are
“turnaround” situations),
(3) Businesses
earning good returns on equity while employing little or no debt,
(4) Management in
place (we can’t supply it),
(5) Simple
businesses (if there’s lots of technology, we won’t understand it),
(6) An offering
price (we don’t want to waste our time or that of the seller by talking, even
preliminarily, about a transaction when price is unknown).
It sounds simple
but often it is hard to find concrete stocks that could meet his restrictions.
Today I like to
close this gap by introducing some stocks that would appear on Warren Buffett's investing radar.
These are the results....