Warren Buffett is a self-made billionaire. His successful investment business makes him one of the most respected men in the world.
Buffett attributes all of that to always being prepared. When he was a teenager, he was inspired by a book called “The Intelligent Investor” by Ben Graham. The book tells the importance of being prepared instead of making emotional decisions in business.
The book The Art of Selling Yourself: The Simple Step-by-Step Process for Success in Business and Life (Tarcher Master Mind Editions) says the book explains Buffett’s success because it made him value being prepared.
Here are a few ways that you can be as prepared as Buffett when you make investment decisions:
Make sure you’re getting the investment at a good price. This makes the investment safer in the long-run.
Ask yourself if the investment is long-term. The best investments give back over time instead of offering immediate gratification.
Research if the business is well-managed. Buffett scrutinizes decisions that management are making to ensure that even if the company falls on hard times, the best decisions will be made.
See if the business avoids debt. Buffett doesn’t invest in companies that have too many debts to pay off.
Also check out the company’s returns. Buffett seeks out company’s with a return on investment higher than average–or 11 percent.
See if the business has a competitive edge in its industry. Buffett accomplishes this by seeking out brand-names like Coca-Cola. The brand recognition gives it value.