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Buffett looks for businesses with consistent and predictable cash flow from "summary" of Warren Buffett's Ground Rules by Jeremy C. Miller
Warren Buffett's investment strategy is centered around seeking out businesses that exhibit a reliable and steady stream of cash flow. This means that he is not interested in companies that experience wild fluctuations in their earnings from year to year. Instead, he looks for businesses that can consistently generate profits regardless of the broader economic environment. By focusing on companies with predictable cash flow, Buffett is able to minimize the risk of his investments and ensure a steady return over the long term. One of the key reasons why Buffett values consistent cash flow in a business is that it provides a measure of stability and predictability. Compani...
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