Part 6/13:
For most individual investors without the time or resources to dig into deep due diligence like Buffett and Munger, passive investing is a simple and effective strategy to let long-term growth compound.
What Buffett and Munger Look for in Acquisitions
When acquiring companies, Buffett and Munger refrain from sweating the small details like exhaustive legal reviews or minute contractual clauses. Instead, their philosophy centers on these three essential factors:
Good Management: Trustworthy, competent leaders who can make smart long-term decisions.
A Sound Business Model: Businesses that produce consistent cash flow and competitive advantages.
A Fair Price: Acquiring businesses at a price that promises attractive future returns.