PNV - Banter and General Comments, page-11672

Please read this.....from Morningstar!

The article identifies five common traits of companies which make it into Buffett’s investment portfolio:

• An economic moat. This means a company that has a sustainable competitive advantage. For example, Berkshire Hathaway insurance subsidiary Geico enjoys a durable cost advantage by selling policies directly instead of paying sales reps.
• An outstanding management team. Buffett has always sought outstanding CEOs. He admired Katherine Graham, who ran The Washington Post in the 1970s, Tomy Murphy and Dan Burke at media outfit, Capital Cities/ABC, and Coca-Cola’s late Chairman Don Keogh.
• Thoughtful capital allocation. This means companies that deploy capital to build shareholder value over time. Buffett deplores empire building acquisitions, dilutive share raises, and managers who put themselves first rather than shareholders. Instead, he likes those businesses that make thoughtful acquisitions and buy back shares when their stocks are undervalued.
• Earnings power and financial strength. Buffett avoids companies that use accounting tricks to fudge their financial numbers. He prefers using measures such as operating earnings, return on equity, and free cashflow, to assess a company’s earnings power and strength. A famous example of earnings power comes from one of Buffett’s initial investments, in See’s Candies. Millions of repeat customers for its boxed chocolates and its low-cost structure means See’s has been able to consistently raise prices over time, enabling growing profits and returns on capital.
• An easy-to-understand business. Buffett has always favoured simple business models. For this reason, he shunned tech companies for a long time. He has also generally avoided rapidly evolving industries like airlines and investment banking.

Many similarities to PNV?