1. Is the business simple and understandable?
2. Does the business have a consistent operating history?
3. Does the business have favorable long-term prospects? Management Tenets
4. Is management rational?
5. Is management candid with its shareholders?
6. Does management resist the institutional imperative?Financial Tenets
7. What is the return on equity?
8. What are the company’s “owner earnings”?
9. What are the profit margins?
10. Has the company created at least one dollar of marketvalue for every dollar retained? Value Tenets
11. What is the value of the company?
12. Can it be purchased at a significant discount to its value?
2. Does the business have a consistent operating history?
3. Does the business have favorable long-term prospects? Management Tenets
4. Is management rational?
5. Is management candid with its shareholders?
6. Does management resist the institutional imperative?Financial Tenets
7. What is the return on equity?
8. What are the company’s “owner earnings”?
9. What are the profit margins?
10. Has the company created at least one dollar of marketvalue for every dollar retained? Value Tenets
11. What is the value of the company?
12. Can it be purchased at a significant discount to its value?
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