Don't expect to make money by selling well, but make ** attractive enough that the selling price can generally get a good profit.
Warren Buffett.
With *** below intrinsic value
As an investment guru, Warren Buffett suggested and insisted that buying part of a business should be lower than its intrinsic value, that is, a buyer below a reasonable level is willing to buy all of the business. As a well-known entrepreneur, what Buffett hopes is to buy the entire business at a price that is not higher than the intrinsic value.
Warren Buffett believes that a reasonable buyer will comprehensively consider multiple factors such as the company's assets, profitability, and market prospects when evaluating the value of a business. Therefore, he suggested that investors should take the standard of buying ** below the ** that this reasonable buyer is willing to buy all the ** of the company. In this way, investors are not only able to avoid being swayed by market sentiment and short-term fluctuations, but also earn significant returns on their investments over the long term.
In addition to being an investor, Buffett is also a successful entrepreneur. He is not only good at discovering and mining the intrinsic value of the enterprise, but also knows how to buy the entire enterprise with no higher than this value. Warren Buffett knows that only on the premise of ensuring that the purchase is reasonable, can it bring long-term stable development and profitability to the company.
Warren Buffett's investment philosophy is not only a wisdom, but also a deep understanding and respect for the business world. It admonishes us to face the market's challenges with a rational and calm attitude, whether as investors or entrepreneurs. Only in this way can we remain invincible in the highly competitive market and achieve real value creation and wealth accumulation.
The standard of a good company.
Warren Buffett, known as the "God of Stocks", has a unique insight into how to identify a "good company". In his eyes, a truly "good business" needs to meet a series of strict standards. First and foremost, the business must have a strong franchise, which means that it occupies a unique position in the market with advantages that are difficult for competitors to imitate. This kind of franchise can help companies stand out in the fierce market competition and continue to stay ahead of the competition.
Secondly, Warren Buffett attaches great importance to the return on equity of enterprises. He firmly believes that only those companies that can consistently achieve an above-average return on equity are truly worth investing in. This indicator reflects the profitability of the business and is the source of corporate growth and shareholder returns.
In addition, Warren Buffett believes that a good business should have a relatively small capital investment. This means that companies can effectively control costs and improve operational efficiency while maintaining daily operations. Such companies are often able to release more cash flow and create greater value for shareholders.
Finally, Buffett's emphasis is on the ability to unlock cash flow. He knows that cash flow is the lifeblood of a company's survival and development. A good business should have the ability to continuously generate and release cash flow, so that it can continue to expand its scale and improve its market competitiveness.