Buffett's Investment Goals

(Taken from the wonderful compilation of Warren Buffett's sayings done by Bud Labitan called "The Warren Buffett Business Factors".)

Our goal is to acquire either part or all of businesses that we believe we understand, that have good, sustainable underlying economics, and that are run by managers whom we like, admire and trust.

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That's Warren Buffett's investment goal.

See how important Buffett stressed that the good business MUST be run by managers whom we like, admire and TRUST.

Or the issue of Management Integrity by the late Philip Fisher?

• It's not only the dislike for dealing with unscrupulous people but Fisher believes that companies managed by people of dubious integrity will definitely meet with failure.

And amazingly this very same issue was mentioned in the book Reminiscenes of A Stock Operator, "I have never thought it is good business to play any game in any place where it was necessary to keep an eye on the dealer because he was likely to cheat if unwatched."

Just like the investor, the trader too guards against inside chiches!

More from that classic books, Reminiscenes of A Stock Operator

• I would rather play commodities than stocks. There is no question about their greater legitimacy, as it were. It partakes more of the nature of a commercial venture than trading in stocks dies. A man can approach it as he might in any mercantile problem. It may be possible to use fictitious arguements for or against a certain trend in a commodity market; but success will be only temporary, for in the end the facts are bound to prevail, so that a trader gets dividends on study and observation, as he does in a regular business. He can watch and weigh conditions and he knows as much about it as anyone else. He does not guard against inside cliches. Dividends are not unexpectedly passed or increased overnight (to drive the stock prices up) in the cotton market or in wheat market or corn. In the long run commodity prices are governed but one law - the economic law of demand and supply. The business of a trader in commodities is simply to get the facts about demand and supply, present and prospective. He does not indulge in guesses about a dozen things as he does in stocks.

Understand that one law - the economic law of demand supply in a given trade. Guarding against inside cliches, trying to figure out what is happening. In short, stocks are easily manipulated. JL talked about how stocks announced dividends overnight just to drive up the stock price.

Any change then and now?

Nope!

Crooked owners are still crooked owners.

And crooked owners of stocks still cheats. They manipulate stock prices!