TAO OF WARREN BUFFET # 20 .

You should invest in a business that even a fool can run.because someday a fool will.

There are business with great underlying economics and business with poor underlying economics.You want to invest in companies with great underlying economics because it is hard to damage this kind of business.Companies in which Warren has invested ,such as CocaCola,Budweiser,Walmart,Wrigley’s,Hershey,and H&R Block, are almost dumbproof.You know you are going to make money with these business,even if a fool becomes a CEO.But if you have to worry about a fool running the business,then maybe it is’nt such a great business,and maybe you shouldn’t be in it.

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