Warren Buffett advice quotes

Our goal is to find an outstanding business at a sensible price,
not a mediocre business at a bargain price.




The Magic Investment Formula

The magic venture investing formula is simple: invest  in young, good, innovative, and growing companies while they are cheap.

But what is "good", and what is "cheap"?

Joel Greenblatt, who has been incredibly successful running a hedge fund in part according to this Buffett-like approach, defines good and cheap companies as follows.


Good companies earn high returns on their investments.

Cheap companies sport share prices that are low (based on past earnings).

His proxies for these criteria are return on capital (operating profit as a percentage of net working capital and net fixed assets) and earnings yield (pretax operating earnings compared with enterprise value, which is the market value plus the net debt).  >>>


VC Investment Criteria

People / management that can get the job done

A brilliant idea or technology that can be commercialized  >>>

A well-prepared and focused business plan that provides clear direction  >>>

Effective Business Model Download PowerPoint presentation, pdf e-book

A strategy that has a strong sustainable competitive advantage Download PowerPoint presentation, pdf e-book

A reasonable price per share  >>>