 Warren Buffett's recent purchase of Japanese stocks reveals a pattern in his investing that you should pay attention to, earnings yields. He waits for the companies he wants and already likes and already understands to be paying a high earnings yield relative to the price. And watch this video. People look at this and say, okay, Warren Buffett is putting his stamp of approval on investing in Japan, basically. Is that an accurate read? Well, yeah, it was an accurate read, but it was an accurate reading a couple of years ago too. I mean, I was confounded by the fact that we could buy into these companies and in effect have an earnings yield maybe 14% or something like that with dividends that would grow. They actually grew 70% during that time. And the people were investing their money at a quarter of a percent or nothing. And the quarter percent, if they put it out for many years wasn't going to grow and the 14% was more likely to grow than not. And if that doesn't look like something sensible to me, that's as easy as it gets, but it's sure not to be better than I thought it would be. So he just revealed a major filter, a major clue on how he pulls a trigger on companies he likes, earnings yield. If you look at earnings and you divide it by the price, it's the same thing as looking at rent to property price. That's the earnings yield. So he filters out the losers by waiting till the companies are profitable, a profitable company that has a healthy earnings yield, that's how he knows he's in the right zone going forward. That makes a lot of companies unqualified to even be on his radar. The next filter is, is he getting more than treasuries or government bonds? If he's getting a decent yield on a quality company that has a good brand and a strong moe and good management and he's also beating treasuries, he's again filtered out a bunch of companies that are unqualified and unownable. So don't forget to look at the earnings yield of your favorite company or just wait till your favorite company meets that guideline of having higher earnings and treasuries. Let me know if you agree or disagree.