Thread by @Finology_Quest

Warren buffett letters can teach you more than any investor

Key learnings 👇

1. Invest in Tollbooth Businesses

These r those businesses to which u have to pay whether you like it or not, in order to do things u do want to do.

For ex: To use a laptop, you have to use Windows.

2. Dividend-paying companies are bad

Companies that distribute dividends from their profits don’t have the ability to re-invest their profits in business.

Profits reinvested in the business create a lot more wealth for shareholders than dividends.

#sharemarket #WarrenBuffett

3. Moat

#Buffett believes in investing in businesses that have a moat that is sustainable and would not weaken over time.

#StockMarketindia

4. Invest in businesses whose products have a value attached to them

For ex: #Apple creates a sense of scarcity among customers, due to which the buyers feel they own a premium product.

5. Companies with high-profit margins are risky

Companies that have high margins, invite new business entrants to rule the industry. For ex: Boat disrupted the audio wear market with its low-cost products.

Btw, we have all letters of #WarrenBuffett on Quest for FREE, so no excuses for skipping the treasured knowledge.

Here’s the link: quest.finology.in/courses/warren…