5 Stock Filters Value Investors Like Warren Buffett Use All the Time

Can you easily explain the company’s business?

Millions of investors lose money in stocks simply because they buy shares in a business they hardly understand.

To borrow Buffett partner Charlie Munger’s phrase, these stock investors operate outside their circle of competence. If you are able to describe the business and how it makes money in a few concise sentences, it usually means you have a fair understanding of the stock you are buying.

1 / 5
Next ❯