Warren Buffet’s guide to finding stocks whose “value” is significantly greater than their price:

  • Stick to stocks within your “circle of competence.” If you don’t understand the business, you can’t value the stock.
  • Look for managers that treat the shareholder’s capital with owner like care and thoughtfulness.
  • Study prospects — and their competitors — in great detail. Look at raw data, not analysts’ summaries. Trust your own eyes. But one needn’t value a business to precisely. A basketball coach doesn’t check if a prospect is six foot one or six foot two; he looks for seven-footers.
  • The wast majority of stocks are not compelling — so ignore them. When you have conviction about a stock, you should show courage — and buy a ton of it.



Skeptic, Generalist, Ignoramus

Love podcasts or audiobooks? Learn on the go with our new app.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store