Warren Buffett: Quantitative vs Qualitative Investing

In Buffett Partnership Letter October 9, 1967, Buffett said, “The evaluation of securities and businesses for investment purposes has always involved a mixture of qualitative and quantitative factors. At the one extreme, the analyst exclusively oriented to qualitative factors would say, “Buy the right company (with the right prospects, inherent industry conditions, management, etc..) and […]

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What is Economic Franchise

Economic franchise is one of the most important investing concepts used by Warren Buffett. Companies with economic franchise are rare in the business world. They are great businesses which enjoy pricing power and could stand incapable management. In his 1991 letter to Berkshire Hathaway shareholders, Warren Buffett explained the concept of economic franchise: “An economic […]

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What is intrinsic value

“Book value tells you what has been put in; intrinsic business value estimates what can be taken out. “ Buffett: Chairman’s Letter – 1983 – Berkshire Hathaway, Inc. Link: http://www.berkshirehathaway.com/letters/1983.html Now let’s focus on two terms that I mentioned earlier and that you will encounter in future annual reports. Let’s start with intrinsic value, an all-important concept that […]

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