Warren Buffet’s & Berkshire Hathaway Inc.’s Business Acquisition Criteria

Warren Buffet

Every year Warren Buffet, the famous investor who runs Berkshire Hathaway Inc. (NYSE:BRK.A Trend), issues a letter to their shareholders. These letters offer a unique opportunity to peer into the mind of arguably one of the best investors of all time. The 2014 letter, dated February 27, 2015 was of particular interest because it marked the 50 year anniversary of the company.

These letters are long, but worth the read as they offer a variety of valuable information that can make you a better investor. The 2014 letter can be read here, and you can see previous year’s letters here.

As I read the letter a lot jumped out, but of particular interest was Berkshire Hathaway Inc.’s acquisition criteria found on page 23. The company is known for its ability to buy great businesses that lead to market beating returns, so naturally I wanted to compare what they do to my own investment strategy. The following is a quote from the letter that shows their six criteria.

BERKSHIRE HATHAWAY INC.

ACQUISITION CRITERIA

We are eager to hear from principals or their representatives about businesses

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