Warren Buffett’s criteria for investing or buying a business:
(1) Large purchases (at least $75 million of pre-tax earnings unless the business will fit into one of our existing units
(1) Large purchases (at least $75 million of pre-tax earnings unless the business will fit into one of our existing units
(2) Demonstrated consistent earning power (proforma or future projections are of no interest to us, nor are “turnaround” situations
(3) Businesses earning good returns on equity while employing little or no debt
(4) Management in place (we don’t want to supply it)
(5) Simple businesses (if there’s lots of technology, we won’t understand it and therefore won’t invest
6) An offering price (we don’t want to waste our time or that of the seller by talking, even preliminarily, about a transaction when price is unknown).
No comments:
Post a Comment