Ch.4 1. Business tenants- buffet believes that if people are drawn to an investment from superficial notions rather than fundamentals, they will more likely be scared away at the first sign of trouble. Buffet concentrates on learning everything he can about a business, before investing Management tenants- He also looks hard at quality of management. He likes managers that act like owners. Financial tenants- Buffet does not pay to much attention to yearly financial results, he …showed first 75 words of 316 total…

…showed last 75 words of 316 total…cant make an intelligent guess about the futere of a business unless you understand how it makes money. 4. manage a portfolio of a business- diversification is only recquired if investors dont understand what they are doing. the essence of warren buffet is the rational allocation of capital.Rationality of making choices is very important to buffet Buffets success is a result of locating a line of reason and not deviating from that reason. ------------------------------------------------------------------------ **Bibliography**