Look for companies with high profit margins.
Interpretation
Invest in companies that earn significantly more than they spend.
Warren Buffett emphasizes the importance of identifying companies that have high profit margins, as these businesses are typically more successful and better positioned for long-term growth. Such companies are more likely to withstand economic fluctuations and provide strong returns to investors.
In practice
During a financial presentation, I quoted Buffett to highlight bullish investment strategies.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
If the world couldn't see your results, would you rather be thought of as the world's greatest investor but in reality have the world's worst record? Or be thought of as the world's worst investor when you were actually the best?
Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.
I think you should read everything you can. In my case, by the age of 10, I'd read every book in the Omaha public library about investing, some twice. _x000D_ You need to fill your mind with various competing thoughts and decide which make sense.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
One’s objective should be to get it right, get it quick, get it out and get it over. Your problem won’t improve with age.
People who fail to accumulate money, without exception, have the habit of reaching decisions, if at all, very slowly, and of changing these decisions quickly and often.
I think luck is the sense to recognize an opportunity and the ability to take advantage of it... The man who can smile at his breaks and grab his chances gets on.
Death comes to all, but great achievements build a monument which shall endure until the sun grows cold.
From nobody to upstart. From upstart to contender. From contender to winner. From winner to champion. From champion to Dynasty.
If your job is not making a difference in this world, by all means, get out there and find something else ... You’ll find a sense of making a difference through your work if you simply look for it.
In business and in politics a man must carve and maul his way through men to get to be King of the Mountain. Once there, he can be great and kind-but he must get there first.
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