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How do you make ‘a lot of money’ in the stock market?

In a previous article we took a look at Warren Buffett’s definition of “the very best businesses.” Buffett says you want to find businesses that earn a high return on tangible assets and grow. Those are the best businesses to own because they compound invested capital over time. Compounding comes down to rate of return and time. All things being equal, the higher your rate of return, the better. And the longer you earn that rate of return, the better. Buffett puts it this way: “You know, if

Michael BrainerdMichael Brainerd

What are the best businesses to own?

In a 2014 interview, Carol Loomis, Warren Buffett’s de facto editor in chief, asked him, what is a good business. A good business is the one that earns a high rate of return on tangible assets. That's pretty simple... The very best businesses are the ones that earn a high rate of return on tangible assets and grow. How can you not love Warren Buffett? Like his late business partner Charlie Munger, he often distills decades of experience, knowledge and wisdom into short, memorable, golden nugge

Michael BrainerdMichael Brainerd

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