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> By contrast, Warren Buffett would invest in a "company" consisting of a couple of guys in a garage with a vision for the future.

I think you meant would NOT invest in that scenario. Warren invests in

- companies with strong reoccurring revenues

- strong moats around them to protect them from competitors

- companies that are the number one or two in their chosen fields

two guys in a garage with a vision of the future is sadly missing all of these things. That's a very unlikely scenario for Warren Buffet to invest in.



Buffett is best known for investing in companies that are undervalued. If he simply invested as you describe, he would be lost in a crowd of investors who use the same criteria.

Also it's important to say that some investors are going to succeed by chance, not design, and there cannot be a consistent winning equities investment formula or method. More here:

http://arachnoid.com/equities_myths




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