#1
Great Company in Temporary Trouble
"The best thing that happens to us is when a great company gets into temporary trouble."
The best buying opportunities emerge when excellent companies face temporary setbacks.
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Warren Buffett📌 Business Quality
Warren Buffett's Business Quality 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...
6 principles·Business Quality
6 Key Business Quality Principles
#2
Capital-Light Business
"The best business is a royalty on the growth of others, requiring little capital itself."
The best businesses grow profits without requiring proportional capital investment.
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Consumer Monopoly
"I look for businesses that are like the only bridge over a river."
The ideal investment is a business with monopoly-like economics that customers can't avoid.
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Pricing Power
"The single most important decision in evaluating a business is pricing power. If you've got the power to raise prices without losing business to a competitor, you've got a very good business."
Pricing power is the single best indicator of a business's competitive strength.
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Quality Management
"When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact."
Bad business economics will defeat even the most talented management team.
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Economic Moat
"In business, I look for economic castles protected by unbreachable moats."
The strongest businesses are protected by durable competitive advantages that repel competitors.
Read Full Analysis →Frequently Asked Questions
What are Warren Buffett's key business quality principles?
Warren Buffett has 6 key principles on business quality. The most important one is "Great Company in Temporary Trouble" — The best thing that happens to us is when a great company gets into temporary trouble.
How does Warren Buffett apply business quality in practice?
Warren Buffett applies business quality through several key principles including "Great Company in Temporary Trouble" and "Capital-Light Business". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Warren Buffett's approach to business quality unique?
Warren Buffett's approach to business quality is distinguished by a focus on long-term thinking and fundamental analysis. With 6 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.
