In this episode we wrap up our 3-part series ‘Thinking like Warren Buffett’. We’ve pulled out a 9-question checklist from Buffettology, a book by Warren’s daughter-in-law Mary Buffett. We’ve each chosen a stock and are running through the checklist and seeing if our chosen stocks pass the Buffettology test.
In this episode we answer questions 7, 8 & 9.
For Questions 1-4, check out episode 46.
For Questions 5-6, check out episode 47.
In this episode you will learn:
- Why retained earnings are so important.
- What good capital allocation looks like for businesses.
- About share buybacks.
- Why Warren prefers buybacks to dividend payments.
- The importance of finding businesses that can adjust prices for inflation.
- Whether the boys chosen companies passed the 9-part checklist.
Stocks and Resources Discussed:
- ResMed (ASX & NYSE: RMD)
- Boral (ASX: BLD)
- Buffettology by Mary Buffett
- Equity Mates Recommended Reading Page
