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🏰 Warren Buffett’s investment checklist
In this series, we will teach you 5 things about the stock market in less than 5 minutes.
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1️⃣ Warren Buffett’s investment checklist
Some characteristics Warren Buffett is looking for in a company:
2️⃣ How to find great companies
Search for companies with the following characteristics:
Revenue growth > 5%
Profit growth > 7%
FCF / earnings > 80%
ROIC > 15%
Net debt / FCFF < 5
Debt/equity < 80%
3️⃣ One simple investment quote
If you want to perform better than the crowd, you need to differ from the crowd.
"If you are not willing to look like an idiot from time to time, stock markets are not for you." - Charlie Munger
4️⃣ Podcast tip
William Green is an excellent journalist who interviews the best investors in the world.
Via the link below, you can find his most recent interview with François Rochon:
5️⃣ Example of a Quality Company
Looking for investment inspiration? Take a look at the top 10 positions of Chuck Akre:
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About the author
Compounding Quality is a professional investor which manages a worldwide equity fund with more than $150 million in Assets Under Management. We have read over 500 investment books and spend more than 50 hours per week researching stocks.