Focus on longterm profitability from "summary" of Buffettology by Mary Buffett,David Clark
Warren Buffett believes that a key principle of successful investing is to focus on the long-term profitability of a company. This means looking beyond short-term fluctuations in stock prices and instead, focusing on the fundamental strength of a company's business. By concentrating on long-term profitability, investors can avoid being swayed by market volatility and make more informed decisions based on the underlying value of a company. To determine the long-term profitability of a company, Buffett looks at a variety of factors, such as the company's competitive advantage, management team, and financial health. He values companies that have a durable competitive advantage, meaning they can maintain their market position and generate consistent profits over time. Buffett also pays attention to the quality of a company's management team, as strong leadership is crucial for long-term success. In addition, Buffett c...
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