The Warren Buffet Way by Robert G. Hagstrom is probably one of the best books ever written on Warren Buffet. It talks about Warren Buffet’s view on investing in the stock market and what should investors look out for. This article is a summary of one of the chapters which describe the 12 tenets of a great business. Let’s begin.

Warren Buffet constantly emphasises on the importance of focusing on the business, not the market. We should be business analysts rather than market analysts. Ignore the macro-economic factors such as whether interest rates go up or down or whether the manufacturing index expands or contracts for the month.

Instead, think more in terms of the micro-aspects of a business. Think yourself as buying into a business. What are the things you would be concerned about? Would it be whether the fed cut interest rates? Probably not.

More likely than not, it