The $80 billion man’s investment philosophy can be summed up in one sentence…
He only invests in businesses he understands.
He needs to understand the market, the business model, the macro / micro economics forces at play…
And if he doesn’t get it — he’s not going to invest.
Legend has it he read over 100 years of annual reports before pulling the trigger on Coca-Cola.
Contrast this with the approach of a speculative investor…
Someone who, instead of investing in “businesses” like Buffett, treats his investments more like a slot machine.
Stock is going up, he buys.
Stock is going down, he sells.
“Numbers on a screen”, as they say.
Here’s the question you ought to be asking yourself…
Are you “investing” in your market like Buffett, or like that speculative investor?
Are you taking the time to understand your market and your customer — such that “success” is inevitable?
Or are you placing bets and hoping for a big payday?