Warren Buffett: How I make an investment decision

Credit: Finance Jane

Warren Buffett is famous for his focused investing strategy.

Instead of holding a fully diversified portfolio, he only invests in a limited set of quality companies after thorough analyses to assure handsome returns over a long period of time.

Some Berkshire Hathaway shareholders care about what stock sectors Warren Buffett will invest in in the near future.

In this video, Buffett gives his answer. It turns out that he and Charlie Munger seldom pick specific stock sectors to invest in.

What they usually do is use several factors to make their investment decisions. Watch the video to find out what the factors are.

Warning: This video is to show you Buffett’s opinion about how to choose businesses to buy. Please do your research before doing any investment. A good balance between return and risk is the key to investment success.

Source: Finance Jane (Shared via CC-BY)