Any Buffett follower know that Warren asks the following questions when considering an investment:

1- Can I understand it?
2- Does it have good management?
3- Does it have an enduring competitive advantage?
4- Can it be purchased at an attractive price?

But, what do those questions really mean and why do they matter so much? Many people think they may understand a business and it has good management but Bud goes into detail in those categories and expands on them allowing readers to understand what Warren looks for.

Perhaps the most difficult concept, because it is so easily confused is competitive advantage. I think the strength of Bud's book is making the concept as clear as possible for people to then be able to filter their own ideas through it. Without an advantage, a company purchased at an attractive price will most likely remain priced there for a long time.

I highly recommend this book,

Todd Sullivan, ValuePlays