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What is your investment process?

In the past some things were cheap enough Warren Buffett could decide in a day (this was somewhat a function of a time period where companies would sell at 2-3x earnings)

Decisions should be obvious to onlookers. You should be able to explain why you bought something in a paragraph.

“I don’t do DCF” (Warren Buffett says he does a rough approximation in his mind).

Finding ideas is a function of cumulative knowledge over time. Something just comes along – usually an event takes place, like a good management team screwing up that creates the opportunity (Warren Buffett seems to imply here that his reading isn’t specifically targeted at finding ideas, but rather that ideas jump out at him as a natural consequence of vociferous reading).

You must be patient…good ideas tend to be clustered together, and may not come at even time intervals…when you don’t find anything for a while it can be irritating
WB isn’t bothered by missing something outside his circle of competence – Missing things inside the circle is nerve racking…examples include WMT, FNM

Time: Jan 2005

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