Mental Models
The world doesn’t reward equally. The only thing we know for sure is that it rewards follow through and iterations.
Groucho Marx: "I don't want to belong to any club that would accept me as a member."
We select our marketable equity securities in much the same
way we would evaluate a business for acquisition in its entirety.
We want the business to be (1) one that we can understand, (2)
with favorable long-term prospects, (3) operated by honest and
competent people, and (4) available at a very attractive price.
We ordinarily make no attempt to... See more
way we would evaluate a business for acquisition in its entirety.
We want the business to be (1) one that we can understand, (2)
with favorable long-term prospects, (3) operated by honest and
competent people, and (4) available at a very attractive price.
We ordinarily make no attempt to... See more
Chairman's Letter - 1977
be around things you can understand, think in decades, be around good and honest people, don’t pay too much
Backsolve from desired outcome
