Warren Buffett has a knack for finding high-return equity investments. Between 1965 and 2020, the holding company Buffett runs, Berkshire Hathaway , delivered a compound annual gain of 20%. That's nearly double the S&P 500 's annual growth of 10.2% in the same timeframe.
Fortunately for the investment community, Buffett likes to share his methods with the masses. In early 2008, he outlined four traits he and his fellow Berkshire leader Charlie Munger use to identify investable companies:
Charlie and I look for companies that have a) a business we understand; b) favorable long-term economics; c) able and trustworthy management; and d) a sensible price tag.
For further details see:
4 Key Traits Warren Buffett Uses to Pick the Best Stocks