That’s a very simple set of ideas. And the reason our ideas haven’t spread faster is they’re too simple.
Munger and Buffett’s checklist for picking a company to invest in:
1. We have to deal in things we’re capable of understanding
2. We have to have a business with some intrinsic characteristics that give it a durable competitive advantage
3. We would prefer a management with a lot of integrity and talent,
4. And finally, no matter how wonderful it is, it’s not worth an infinite price. So we have to have a price that makes sense and gives a margin of safety, given the natural vicissitudes of life.
Watch the video : Charlie Munger Reveals Secrets to Getting Rich