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Accumulating wealth the Warren Buffett way

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Warren Buffett, one of the richest men in the world and a remarkable investor for over 50 years, has revealed his formula when making investment decisions and considering a potential company to invest in:

  • Has the potential business:
    • A track record of success?
    • A growth market which it can expand into?
    • Stable, committed and quality management?
    • An asking price that is attractive considering its long term potential?

As an example of his thinking, Buffett recently invested substantially in a US railroad company. His logic was as follows:

  • Railways use one third less fuel than trucks
  • Railways are far less pollutant than trucks
  • Railways move more people and move more goods – railways are the way of the future.

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