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He looks for businesses with predictable and stable earnings from "summary" of Warren Buffett's Ground Rules by Jeremy Miller
Warren Buffett is known for his keen eye for businesses that exhibit certain characteristics. One such characteristic is the predictability and stability of a company's earnings. This means that Buffett seeks out companies that have a history of consistent earnings over time. By focusing on businesses with predictable and stable earnings, Buffett is able to mitigate risk and make more informed investment decisions. One reason Buffett looks for predictability and stability in earnings is because it allows him to better understand the underlying fundamentals of a business. Companies that have a track record of steady earnings are more likely to have a sustainable business model and a competitive advantage in their industry. This gives Buffett confidence in the long-term prospects of the company and reduces the likelihood of negative surprises in the future. Another benefit of invest...
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