Finding the economic goodwill of a business can be the key to a succesful investment.
How to use dividend yield and earnings yield to check whether the price of a stock represents value.
Does Berkshire’s stock price have a high beta returning excess profits but with higher than normal risk? Does Buffett’s success rely on his ability to choose safe quality stocks with low Beta ratings?
Is return on equity important in deciding whether to invest in a company? Warren Buffett thinks so. So too is return on capital.
A recent report from Yale University argues that the Oracle of Omaha’s success is substantially due to his access to the low cost cash borrowings generated by premiums paid to his insurance companies.
Warren Buffett likes food and drink companies with a durable, competitive advantage.
Benjamin Graham is the father of value investing but Warren Buffett has taken Graham’s rules and built upon them to identify growth stocks at good prices.
Buffett thinks that the current high price of gold may be a bubble and would prefer to put money into productive farmland or a good business.
As Warren Buffett says, if you don’t understand a company’s business, you shouldn’t be investing in it.
Is putting your money in currency denominated investments like bank deposits and government bonds risk-free? Warren Bufffett does not think so.