Essence of Warren Buffet

Business tenants- buffet believes that if people are drawn to an investment from superficial notions rather than fundamentals, they will more likely be scared away at the first sign of trouble. Buffet concentrates on learning everything he can about a business, before investing Management tenants- He also looks hard at quality of management. He likes managers that act like owners. Financial tenants- Buffet does not pay to much attention to yearly financial results, he looks more at four or five year results. He looks for companies with high profit margins nd focuses on return on equity, not earnings per share.

Market tenants- He says that price is determined by the stock market and value is determined by the analyst after weighing all the known information about a company. Buffet also says that you should buy at I think coca cola is the most interesting permanent holding. Its the largest manufacture of soft drink concentrates in the world. This product would be a great buy because you know that long term this company will not suffer due to the huge demand of coke products. Coca cola is the most widely recognized brand name in the world.