Disclaimer:
This article is for informational purposes only and should not be construed as financial or investment advice. Please consult with a qualified financial advisor before making any investment decisions. Recurved Inc. is not affiliated with any of Warren Buffett's companies, and this article does not imply that Warren Buffett would invest in your business, even if you met all of his requirements.

--------------Warren Buffett is one of the most successful investors of all time. His investment philosophy is based on a few key principles, including:

  • Investing in businesses with a sustainable competitive advantage
  • Buying stocks at a discount to their intrinsic value
  • Holding stocks for the long term

If you're wondering if your business would be worthy of Warren Buffett's consideration, here are 15 rules of thumb that he uses when evaluating potential investments:

In addition to these general rules of thumb, Buffett also looks for:
  1. Specific factors in certain industries. For example, in the retail industry, he looks for businesses with strong brands and a loyal customer base. In the financial services industry, he looks for businesses with a high return on assets and a strong capital position.
  2. Durable competitive advantage: Buffett looks for businesses with a durable competitive advantage, which is something that gives them an edge over their competitors. This could be a strong brand, a patent, or a unique product or service.
  3. Manageable: Buffett likes businesses that are easy to understand and manage. He avoids businesses with complex business models or that are in industries that he doesn't understand.
  4. Rational management: Buffett looks for businesses with rational management teams that are aligned with the interests of shareholders. He avoids businesses with management teams that are more interested in enriching themselves than in growing the business.

How to find out if your business is Warren Buffett-worthy?
If you're wondering if your business meets Warren Buffett's investment standards, go to Recurved (www.getrecurved.com) and use our tool to not only find out if you are Warren Buffett worthy but also better manage your business, immediately! Important notes to keep in mind:

  • These “rules of thumb” are only helpful when a company is mature and fully optimized for profits.
  • Consistency is key. The real test is if a company generates good numbers over multiple years & various economic cycles.
  • There are plenty of exceptions & and nuances to these rules! Many of Buffett’s largest holdings do not pass every rule of thumb. That’s because investing & accounting have tons of nuances.

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Disclaimer:
This article is for informational purposes only and should not be construed as financial or investment advice. Please consult with a qualified financial advisor before making any investment decisions. Recurved Inc. is not affiliated with any of Warren Buffett's companies, and this article does not imply that Warren Buffett would invest in your business, even if you met all of his requirements.Source: Brian Feroldi / Founder /  Long Term Mindset – August 2023 – LinkedIn post

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