Warren Buffett: How To Find Stocks To Invest In

Warren Buffett: How To Find Stocks To Invest In

What stocks should we invest in? Legendary investor Warren Buffett answers what he looks for in businesses.

At the University of Florida in 1998, Warren Buffett described how to find businesses (stocks) to invest in.

Buffett said he doesn’t want to buy into any business he’s not terribly sure of. “Never losing anything” is more important to Buffett than just “making money” at investing.

Buffett said to look for untapped pricing power in a business, such as See’s Candies. In addition, See’s Candies has mind-share in people who are looking to give chocolate gifts. In a similar way, many strong brands are also in people’s minds.

If you understand some companies with strong brands and earning power, their stocks might be worthwhile to consider investing in.

Even though Buffett’s references to video stores are a bit outdated, what he said about the power of brands is still relevant.

Disney’s brand is still as strong as ever because you’re going to make similar decisions by opting for the type of brands whose quality you trust. And today that is often Disney+ or Netflix.

You’ll have better results if you only invest in businesses you’re capable of understanding.

Over time, if you’ve gathered background knowledge about a business and industry, you can make investing decisions in only 5-10 minutes like Buffett does because he’s been gradually doing the work over decades.

If you’re interested in learning how to take control of your finances and start becoming an investor like Warren Buffett, check out my free PDF guide.

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