Warren Buffett: What to Look for in an Investment

There are a lot of investment experts out there and Warren Buffett is one of the best. He isn’t the flashiest but he has longevity. In “Warren Buffett: My Greatest Investing Advice And The Investments Everyone Should Make,” the man known as the “Oracle of Omaha” discusses how he became interested in investing and talks about what he looks for in an investment.

Buffett is honest that in some ways he followed in his father’s footsteps since his father was also in investing. Buffett would tag along with his father and read things in his office. However, you do not need a parent who was an investor to pick sound investments. According to Buffett:

“That strategy is to find a good business–and one that I can understand why it’s good–with a durable, competitive advantage, run by able and honest people, and available at a price that makes sense…And then we want a management team we admire and trust.”

He notes that you are not looking for something that will earn more right away but rather something that will continue to bring in earnings for years to come.

Buffett not only took advantage of having a father who was in the investment business, he sought out opportunities to learn. At age 20, he boldly went to talk business with the man who would later be the CEO of an organization of which his company would buy a controlling interest.

While Buffett is not known as a self-help guru, his example of sound investments and frugality (he still lives in the house he bought decades ago) inspires some. Some of his most important advice appears at the end of this article—he admonishes readers of Forbes to invest in themselves: “Address whatever you feel your weaknesses are, and do it now.” The $100 he spent in a public speaking course yielded dividends of the confidence to propose to his wife and to sell stocks as a very young man.

©Bring Clarity to Your Finances™. Warren Buffett: What to Look for in an Investment is a post from Bring Clarity to Your Finances™

About the author

Claire Emory, MBA, CFA, CFP®

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