Warren Buffett's 'secret sauce' for investing success: Be 'business pickers' not 'stock pickers'

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Warren Buffett's 'secret sauce' for investing success: Be 'business pickers' not 'stock pickers' (via CNBCMakeIt)

, because Buffett wasn't sure he understood the businesses in terms of their long-term profitability. This made it harder to determine the value of their stocks.

A competitive advantage could be a powerful brand that people are always willing to pay for, like Coca-Cola, or it could be a unique business model, like selling insurance directly to the consumer rather than through insurance brokerages, as is the case with Geico.Buffett has said that he looks for three things in a manager or leader: intelligence, initiative and integrity.

"The important thing we do with managers, generally, is to find the .400 hitters and then not tell them how to swing," said BuffettAs passive investors, Buffett and Munger seek out companies that seem to be trading for less than their intrinsic value.

 

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MakeIt Or insider picker ?!!

MakeIt Unfortunately we little investors can’t rigg elections and control politicians with Millions of dollars. That kind of sauce is to spicy

MakeIt Not quite sure this still qualifies as divulging his ‘secret sauce’ BWDIK

MakeIt

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