Always look for a business that has competitive barriers, moat, does not need high capital expenditures, and has pricing power (during inflation also).

Some businesses are easier to predict than others. We try to look at businesses that are predictable- Warren Buffett, 1988

The economics of Drinks, Blades, Chocolates and Furniture are much easier to predict than the economics of Software, Internet and likewise.

Warren Buffett suggests that Time and Energy should be put to purchase good businesses at reasonable prices than difficult businesses at cheaper prices.

The importance of a guideline – stay with simple propositions– that we usually apply in investments as well as operations. If only one variable is key to a decision, and the variable has a 90% chance of going your way, the chance for a successful outcome is obviously 90%. But if ten independent variables need to break favorably for a successful result, and each has a 90% probability of success, the likelihood of having a winner is only 35%. But one proved intractable, and that was one too many. Since a chain is no stronger than its weakest link.


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