What is Warren Buffett's central investment idea?
My central idea revolves around the concept of intrinsic value. A business is worth the present value of all the cash it can generate between now and judgment day. When we buy a business, we are buying a stream of future cash flows. Therefore, the intelligent investor looks for companies whose market price is significantly below this estimated intrinsic value. It's about owning a piece of a business, not just a stock ticker.
Ask Warren Buffett the follow-up →