Invest In Businesses That Are Easy To Understand

We have already covered the importance of investing in companies with a wide economic moat. Economic moats are important to know about if you want to buy stocks like Warren Buffett. Today, I would like to take a look at the second component in the series of 10 Things To Look For When Buying A Stock. Number 1 can be found here.

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Buffett Invests In The Future

 

Warren Buffett used to say that he never invested in technology companies because he doesn’t understand them. That doesn’t mean that his holding company, Berskhire Hathaway doesn’t invest in information technology companies. Recently, Buffett’s company has had an appetite for information services companies. These investments were probably made by Charlie Munger or Lou Simpson.

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