If you were to define a 'great company' in Warren Buffett's eyes with three words, what would they be?

Buffett's Letter to ShareholdersBuffettWarren BuffettValue InvestingGreat CompanyInvestment Philosophy
Created At: 7/30/2025Updated At: 8/17/2025
Answer (1)

Warren Buffett's Three-Word Definition of a "Wonderful Business"

  • Economic Moat: A sustainable competitive advantage that protects the business from rivals.
  • Competent Management: A rational and honest management team capable of effectively allocating capital.
  • Above-Cost Returns: The ability to generate returns on capital that exceed its cost over the long term.
Created At: 08-05 08:04:22Updated At: 08-09 02:07:20