First, he says, he will avoid commodity businesses and managers in which he has little confidence.
What he will purchase is the type of company that he understands, one that possesses good economics and is run by trustworthy managers.
"A good business is not always a good purchase," Buffett says, "although it is a good place to look for one."
For Buffett, the activities of a common-stock holder and a businessperson are intimately connected. Both should look at ownership of a business in the same way. "I am a better investor because I am a businessman," confesses Buffett, "and a better businessman because I am an investor."