Here's How Warren Buffett Decides To Invest In Something

Warren Buffett is a self-made billionaire. His successful investment business makes him one of the most respected men in the world. 

Buffett attributes all of that to always being prepared. When he was a teenager, he was inspired by a book called "The Intelligent Investor" by Ben Graham. The book tells the importance of being prepared instead of making emotional decisions in business. 

The book The Art of Selling Yourself: The Simple Step-by-Step Process for Success in Business and Life (Tarcher Master Mind Editions) says the book explains Buffett's success because it made him value being prepared. 

Here are a few ways that you can be as prepared as Buffett when you make investment decisions: 

• Make sure you're getting the investment at a good price. This makes the investment safer in the long-run. 
• Ask yourself if the investment is long-term. The best investments give back over time instead of offering immediate gratification. 
• Research if the business is well-managed. Buffett scrutinizes decisions that management are making to ensure that even if the company falls on hard times, the best decisions will be made. 
• See if the business avoids debt. Buffett doesn't invest in companies that have too many debts to pay off. 
• Also check out the company's returns. Buffett seeks out company's with a return on investment higher than average--or 11 percent. 
• See if the business has a competitive edge in its industry. Buffett accomplishes this by seeking out brand-names like Coca-Cola. The brand recognition gives it value. 

From businessinsider.com