Approach Quote by Warren Buffett
“When Berkshire buys common stock, we approach the transaction as if we were buying into a private business.”
About This Quote
Source Annual shareholder letter, Berkshire Hathaway, 2020
Buying common stock is treated like acquiring a private business.
In simple terms: Treat stock purchases as buying a private business.
Evaluate investments with a business‑owner mindset.
Themes
Mood
Type
When to use this quote
- stock analysis
- portfolio building
- due diligence
- business acquisition
Key Concepts
Questions to Reflect On
- How do you assess a company's intrinsic value?
- What factors signal a quality business?
Public markets differ from private ownership risks.