Warren Buffett - 4 Steps to Picking a Stock

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1. You have to deal in things that you are capable of understanding.

2. Then once you're over that filter, you need to have a business with some intrinsic characteristics that give it a durable competitive advantage.

3. Then you should vastly prefer management in place with a lot of integrity and talent.

4. Finally, no matter how wonderful it is, it's not worth an infinite price, so you have to have a price that makes sense and gives a margin of safety considering the natural vicissitudes of life.

It's a very simple set of ideas. The reason that these ideas have not spread faster is they're too simple.

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[kobebyant12345]

@TagRation because you touch yourself at night

[TagRation]

why does it skip from 3 to 5

[dlane0308]

That isn't Warren Buffett. It's Charlie Munger, his business partner.

[jac5562]

i think hes crying

[SporadicHesitation]

he's really starting to seem old, its sad

[hydrolito]

@TagRation Guess he counted 3 as two steps so 3 Able managers (know what they are doing)

4 Trust Worthy a manager that is responsible and isn't a crook.

[doodelay]

this video makes me a bit sad because he seems like he's on his dying breaths.

[sugivaaaa]

@kobebyant12345 i dont get it...