BUFFETT’S GOLDEN SHARE RULES

WHAT

TO LOOK

FOR LAST week the world’s most famous investor, Warren Buffett, held his annual investor meeting. It’s always worth remembering his five simple questions to answer before investing in a stock.

Do I understand the business? Warren Buffet only invests in companies where it’s clear exactly what they do.

Is it run by people I admire and trust? Often it’s the quality of that board and that executive team which underpins success or failure.

Does it have a sustainable competitive advantage? In today’s business and investment environment, it’s that edge over competitors which translates in to success.

Is it the right price?

He’ll identify a good stock and then wait until its price realigns to a sensible level.

If yes to all the above, then do the deal. In the end it’s all about sticking to quality and spreading your investments over a range of companies on the right track.