Warren Buffett
: How To Pick a Good
Stock
To Invest In
1.
Simple Business Model: Buffett prefers clear, straightforward models for consistent earnings.
2. Competitive Advantage: Emphasis on a 'moat'—strong brand, tech, or market dominance.
3. Sound Management: Trustworthy, experienced leaders crucial for long-term success.
4. Debt-to-Equity Ratio: Low debt, strong balance sheets indicate financial stability.
5. Profit Margins & ROE: High margins, return on equity show financial health.
6. Importance of Price: Avoid overvalued stocks; price is a crucial factor.
7. Margin of Safety: Buffett seeks stocks priced significantly below intrinsic value.