Buffett’s 13-Point Checklist Revealed

Want to rival the performance of the Oracle of Omaha? Here are 13 characteristics that Warren Buffett looks for in a potential investment:

1. Strong and consistent financial performance: Buffett looks for companies with a track record of strong financial performance, including strong revenue and earnings growth, as well as a solid balance sheet.
2. Durable competitive advantage: Buffett seeks out companies with a unique advantage that allows them to consistently outperform their competitors, such as a strong brand, a large market share, or a proprietary technology.
3. Competent and shareholder-oriented management team: Buffett values companies with management teams that are transparent, honest, and focused on maximizing shareholder value.
4. Reasonable price: Despite his focus on long-term growth, Buffett is also mindful of valuation and looks for companies that are trading at a reasonable price relative to their intrinsic value.
5. Strong returns on capital: Buffett looks for companies that are able to generate strong returns on the capital they invest, as this indicates that they are using their resources efficiently and effectively.
6. Good cash flow: Buffett looks for companies with strong and consistent cash flow, as this is a key indicator of financial stability and the ability to pay dividends and fund future growth.
7. Strong balance sheet: Buffett values companies with a strong balance sheet, including low levels of debt and a solid financial position.
8. Simple and easy-to-understand business model: Buffett prefers companies with a straightforward and easy-to-understand business model, as this makes it easier to evaluate the company’s prospects and potential risks.
9. Wide moat: Buffett looks for companies with a “wide moat,” or a strong competitive advantage that makes it difficult for competitors to gain market share.
10. Potential for long-term growth: Buffett looks for companies with the potential for long-term growth, as he is a long-term investor who seeks out businesses that have the potential to grow and prosper over the long haul.
11. Strong brand and reputation: Buffett values companies with a strong brand and reputation, as this can be a powerful competitive advantage and can help to attract and retain customers.
12. History of shareholder-friendly policies: Buffett looks for companies that have a history of being shareholder-friendly, such as paying dividends or buying back shares, as this can be a sign of a management team that is focused on maximizing shareholder value.
13. Diverse customer base: Buffett also looks for companies with a diverse customer base, as this can help to reduce the risk of relying on a single customer or market segment.