Investor Profile Warren Buffet's Methodology

a. Can we measure a company's success by the way it reports its profits and by their magnitude? b. Can we rely on the company providing us continuous profits each year? c. Can we say that because a company has reported profits for over 10 years we can assume it's a safe company to invest in?

For question a; can we measure a company's success by the way it reports its profits?

It would be difficult to assess a company's success if we are merely to rely on profits, since now we know how profits come about.

Warren Buffett's investment methodology is carefully studied by up and coming investors.

Warren outlines six easy steps to determine the true value of any company. To find out if a company has consistently performed well, the net income of the company must be divided by the income that the shareholders receive.

If the company has too much outstanding debt it becomes a high risk investment. Then the investor must shift his attention to the profits.

Buffett continues with additional things to consider - how long has the company been public, do the company's products rely on commodity, and if the stocks of the company are selling at 25% discount to it's real value. Warren Buffett is all business which makes it difficult to find his personal life philosophy and separate it full from his business ethics. "Warren Buffett's story is quintessentially American, " states Cornell Rupert of the Independent. Warren Buffett's unflinching and simple approach to life, business, and ethics is extremely appealing to the average citizen.