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.
What is failure? We can’t possibly know what failure is. Most people think they do, but that’s because they’re judging how their lives should be and what they need it to be: a success. Who is to say what’s a success and what’s a failure? Do your best. Trust. Relax. Do your best. Enjoy yourself.
Patience; this is the greatest business asset. Wait for the right time to make your moves.
Most people don't have so much talent that they can become a success all their own. We all need people to help us and lift us up.
Thankfully I've been quite lucky in my career, but it's always good to re-evaluate things and think about what else you want to do.
When you achieve your Dreams It's not so much what you get, It's who you become.
I think in business, you have to learn to be patient. Maybe I'm not very patient myself. But I think that I've learned the most is be able to wait for something and get it when it's the right time.
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