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What You Can Learn from How Warren Buffett's Investment Process Evolved

6 pointsby gmishurisover 6 years ago

1 comment

afrodc_over 6 years ago
Interesting article. Thanks for sharing.<p>&gt; Buffett considered it exceptionally rare for a business with a strong competitive advantage and the resulting high return on capital to be able to redeploy capital back into the business at similar rates of return. If such a business could be found it would be the perfect business: strong competitive advantage with accompanying high returns on invested capital, high returns on incremental capital that can be redeployed back into the business, and a large amount of capital that can thus be redeployed over time. The result would be a compounder – a business that could both generate sustainably high returns and grow at above-average rates for a long time.<p>In the article they mention Geico as a good investment, which it was, but we could extend the same sentiment to his heavy purchase of Apple securities as of late. Apple has a lot of cash on hand, ready yo be put back into the company for further growth, as well as incredible profit margins and a huge &quot;moat&quot; in the brand name.