According to the book “The New Buffettology”, there are 4 areas in which Warren Buffet discovers companies with hidden wealth:-
- businesses that have a repetitive consumer need with products that wear out fast or are used up quickly and have brand appeal
- the advertising business
- businesses that provide repetitive services that people and businesses are consistently in need of
- products that most people have to buy at some time in their life.
These 4 areas are very closely related to consumer demand and expenditure. In summary, they are a business simple to understand, with good management, attractive prices and has long term prospects.
continue reading "The New “Buffettology”"
