Warren Buffett's First Questions when Investing

Here's what Warren Buffett asks first when investing as answered at the 1995 Berkshire Hathaway Annual meeting's morning session. Add me on Instagram/Twitter: @MrArturNagy

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What is the first thing to look at when investing? Here's what Warren Buffett had to say.

1.) The first question is, "can I understand it?" And unless it’s going to be in a business that I think I can understand, there’s no sense looking at it.
2.) There’s no sense kidding myself into thinking that I’m going to understand some software company, or some biotech company, or something of the sort. What the hell am I going to know about it? So that’s the first threshold question.
3.) And then the second question is, does it look like it has good economics? Has it earned high returns on capital? Does it strike me as something that’s likely to do that? And then I sort of go from there.
4.) BONUS: Charlie Munger: Yeah. We tend to judge by the past record. By and large, if the thing has a lousy past record and a bright future, we’re going to miss the opportunity.

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*The content in this video is accurate as of the posting date. This is not investment advice. I am not a financial advisor.

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What the first thing you look at when investing?