#1
Think Like an Owner
"I am a better investor because I am a businessman, and a better businessman because I am an investor."
The best investors think like business owners, not stock traders.
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Warren Buffett📌 Business Judgment
Warren Buffett's Business Judgment Rules
Warren Edward Buffett (born August 30, 1930) is an American businessman, investor, and philanthropist. He is the chairman and CEO of Berkshire Hathaway, a multinational conglomerate holding company. Known as the "Oracle of Omaha," Buffett is one of the most successful investors of all time with a net worth exceeding $100 billion. Under his leadership, Berkshire Hathaway's stock price has...
4 principles·Business Judgment
4 Key Business Judgment Principles
#2
Continuous Learning
"I just sit in my office and read all day. That's all I do."
Relentless reading and learning is the most underrated investment strategy.
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High Return on Equity
"The primary test of managerial economic performance is the achievement of a high earnings rate on equity capital employed."
Consistently high return on equity signals a business with genuine competitive advantages.
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One Dollar Test
"Every dollar of retained earnings should create at least one dollar of market value."
Every dollar retained by a company should create at least one dollar of market value.
Read Full Analysis →Frequently Asked Questions
What are Warren Buffett's key business judgment principles?
Warren Buffett has 4 key principles on business judgment. The most important one is "Think Like an Owner" — I am a better investor because I am a businessman, and a better businessman because I am an investor.
How does Warren Buffett apply business judgment in practice?
Warren Buffett applies business judgment through several key principles including "Think Like an Owner" and "Continuous Learning". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Warren Buffett's approach to business judgment unique?
Warren Buffett's approach to business judgment is distinguished by a focus on long-term thinking and fundamental analysis. With 4 specific principles in this area, Warren Buffett provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
