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.
Fame sweeps you away. I had to go home every six months to remember who I am.
Only he who attempts the absurd is capable of achieving the impossible.
In order to excel, you must be completely dedicated.
If you start today to do the right thing, you are already a success even if it doesn’t show yet.
Personally, I experience success when I enjoy what I'm doing. I love the creative process, even if the end result isn't embraced by anyone else.
To begin with the end in mind means to start with a clear understanding of your destination. It means to know where you're going so that you better understand where you are now and so that the steps you take are always in the right direction.
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