Warren Buffett is widely known for his adherence to the value style of investing philosophy that helped him compound capital at over 20% for over five decades at his company, Berkshire Hathaway.
From the early 1970's, Buffett made a clear shift from buying only cheap companies and moved towards in good quality businesses that are run by competent management and could potentially be huge wealth creators.
At Equitymaster, our goal is to recommend stocks using the "Buffett would buy" criteria. And that means zeroing in on companies that have strong businesses and moats, a healthy balance sheet and good management. Consequently, we have built two groups of stocks that meet the Warren Buffett's criteria. Since its inception in 2009, both of our groups had beaten their respective benchmark indices over an eight-year and five-year period respectively.
We want to share with you our approach towards identifying stocks that meet the "Buffett would Buy" criteria.
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