#1
Economic Moat Thinking
"In business, I look for economic castles protected by unbreachable moats."
Seek businesses with durable competitive advantages.
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Warren Buffett📌 Mental Models
Warren Buffett's Mental Models 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...
3 principles·Mental Models
3 Key Mental Models Principles
#2
Know Your Circle
"What an investor needs is the ability to correctly evaluate selected businesses. Note that word 'selected': You don't have to be an expert on every company."
Focus on what you truly understand.
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Margin of Safety Framework
"The three most important words in investing are margin of safety. You don't try to buy businesses worth $83 million for $80 million. You leave yourself an enormous margin."
Always buy at a significant discount to intrinsic value.
Read Full Analysis →Frequently Asked Questions
What are Warren Buffett's key mental models principles?
Warren Buffett has 3 key principles on mental models. The most important one is "Economic Moat Thinking" — In business, I look for economic castles protected by unbreachable moats.
How does Warren Buffett apply mental models in practice?
Warren Buffett applies mental models through several key principles including "Economic Moat Thinking" and "Know Your Circle". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Warren Buffett's approach to mental models unique?
Warren Buffett's approach to mental models is distinguished by a focus on long-term thinking and fundamental analysis. With 3 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.
