Buffett emphasizes the importance of understanding a company's business model from "summary" of The Warren Buffett Portfolio by Robert G. Hagstrom
Understanding a company's business model is a fundamental principle that Warren Buffett follows when making investment decisions. Buffett believes that in order to invest in a company, one must first have a clear understanding of how the company operates and generates revenue. This includes understanding the products or services the company offers, its target market, competitive advantages, and potential for growth. By understanding a company's business model, investors can better assess its long-term prospects and competitive position within the industry. This knowledge allows investors to make more informed decisions about whether a company is a sm...
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