This is the first of a four-part series onWarren Buffett's checklist before he invests in Company.
Principle number one
You must understand the company and what they do.
This means you can't invest in company just because it's popular. You can't invest just because you think it's going to go up. You can't invests because someone really recommends it. You have to understand what they do.
Warren Buffett invests in companies like Dairy Queen and Coke a Cola because he understands the enjoyment of ice cream and pop. That seems pretty simple doesn't it?
What companies products do you understand ?
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