{"id":26239,"date":"2026-09-16T23:56:00","date_gmt":"2026-09-16T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=26239"},"modified":"2026-08-10T19:01:21","modified_gmt":"2026-08-10T11:01:21","slug":"filtering-rules-buffett","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/","title":{"rendered":"Two math filtering rules of thumb by Buffett"},"content":{"rendered":"\n<p>Everyone just wonder if there are any filtering rules from Buffett. This post is for it.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Origin_of_this_article\" >Origin of this article<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Original_message_from_blog_reader\" >Original message from blog reader<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#My_reply\" >My reply<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Buffetts_acquision_standards_for_companies\" >Buffett&#8217;s acquision standards for companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Buffetts_criteria_for_acquiring_companies\" >Buffett&#8217;s criteria for acquiring companies<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Two_filtering_rules_of_thumb_by_Buffett\" >Two filtering rules of thumb by Buffett<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Buffetts_first_find\" >Buffett&#8217;s first find<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Source\" >Source<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Filter_rules\" >Filter rules<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Buffetts_thoughts_on_this_Find\" >Buffett\u2019s thoughts on this Find<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Buffetts_second_find\" >Buffett&#8217;s second find<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Source-2\" >Source<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Filter_rules-2\" >Filter rules<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Buffetts_thoughts_on_this_find\" >Buffett\u2019s thoughts on this find<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Applied_two_Buffetts_top_holdings\" >Applied two Buffett&#8217;s top holdings<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/09\/16\/filtering-rules-buffett\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Origin_of_this_article\"><\/span>Origin of this article<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Original_message_from_blog_reader\"><\/span>Original message from blog reader<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A reader of this blog once said, &#8220;The 2004 Berkshire Hathaway annual report wrote relatively specific literal criteria for mergers and acquisitions, but it did not mention a formula.&#8221;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"My_reply\"><\/span>My reply<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffetts_acquision_standards_for_companies\"><\/span>Buffett&#8217;s acquision standards for companies<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This reminds me that regarding Buffett&#8217;s corporate merger and acquisition standards, he mentioned it &#8220;<strong><em>countless times<\/em><\/strong>&#8221; in his official documents and there are several different versions, including the 2004 Berkshire Hathaway annual report you mentioned. My personal opinion is that the differences between these versions are very small, mostly due to differences in text and rhetoric, and the core principles are the same.<\/p>\n\n\n\n<p>For details about these different versions in different periods, please refer to my previous post &#8220;&#8221;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/09\/buffetts-acquisition-criteria\/\">Buffett&#8217;s Acquisition Criteria<\/a>&#8221; for a complete list of various versions of Buffett&#8217;s corporate M&amp;A standards.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffetts_criteria_for_acquiring_companies\"><\/span>Buffett&#8217;s criteria for acquiring companies<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>As far as I can remember, Buffett has never emphasized the &#8220;formula&#8221; in acquiring companies. Please note that he will not say &#8220;formula&#8221; again. But there are rules of thumb, or his generalizations and suggestions.<\/p>\n\n\n\n<p>This is because &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/19\/investing-has-no-formula\/\" target=\"_blank\" rel=\"noreferrer noopener\">Investing has no formulas, but there are ways to invest successfully<\/a>&#8220;<\/p>\n\n\n\n<p>Buffett&#8217;s teacher Graham does have what readers call a &#8220;formula&#8221; for acquiring companies; this aspect has been mentioned in Graham&#8217;s books and will not be repeated here.<\/p>\n\n\n\n<p>Next, we will introduce the two sets of digital screening and filtering stock selection rules of thumb mentioned by Buffett. <em><strong>Again, this is not a formula, but just his many years of investment experience, comprehensive findings, and investment rules of thumb that he has summarized and researched, which are suggestions that investors can refer to.<\/strong><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Two_filtering_rules_of_thumb_by_Buffett\"><\/span>Two filtering rules of thumb by Buffett<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffetts_first_find\"><\/span>Buffett&#8217;s first find<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Source\"><\/span>Source<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This find was published in the &#8220;<a href=\"https:\/\/berkshirehathaway.com\/letters\/1987.html\" target=\"_blank\" rel=\"noreferrer noopener\">1987 Berkshire Hathaway Shareholder Letter<\/a>&#8220;.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Filter_rules\"><\/span>Filter rules<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The average return on equity (ROE) over the past 10 years has been greater than 20%<\/li>\n\n\n\n<li>No single year has an ROE less than 15%<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffetts_thoughts_on_this_Find\"><\/span>Buffett\u2019s thoughts on this Find<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Only 25 out of 1,000 companies fully meet these two conditions<\/li>\n\n\n\n<li>Between 1977 and 1986, 24 out of 25 companies outperformed the S&amp;P 500<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffetts_second_find\"><\/span>Buffett&#8217;s second find<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Source-2\"><\/span>Source<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This finding was published in the &#8220;<a href=\"https:\/\/berkshirehathaway.com\/letters\/2002pdf.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">2002 Berkshire Hathaway Shareholder Letter<\/a>&#8220;.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Filter_rules-2\"><\/span>Filter rules<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pre-tax return 10% (note: a price-to-earnings ratio of about 10 times)<\/li>\n\n\n\n<li>After-tax returns range from 6.5% to 7% (note: approximately P\/E ratio 14.3 to 15.4, corporate tax rate for US companies is 30% to 35%)<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffetts_thoughts_on_this_find\"><\/span>Buffett\u2019s thoughts on this find<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Please note that Buffett specifically said when mentioning this find: &#8220;In my 61 years of investing, approximately 50 years have provided such opportunities, and there will be years like this. However, unless we see these conditions hold true.&#8221;<\/p>\n\n\n\n<p>When he was talking about this find. In the context of that era, the after-tax return on short-term funds was less than 1%, so he had such an opinion.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applied_two_Buffetts_top_holdings\"><\/span>Applied two Buffett&#8217;s top holdings<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The following table is the result of applying the above two math filtering rule of Buffett to his top ten holdings for your reference.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Buffett Case Study<\/td><td>Year<\/td><td>ROE Average<\/td><td>ROE Missed<\/td><td>Pre-tax acquired cost<\/td><\/tr><tr><td>Apple<\/td><td>2016<\/td><td>20%+<\/td><td>0<\/td><td>8.8<\/td><\/tr><tr><td>Coco Cola<\/td><td>1989<\/td><td>20%+<\/td><td>0<\/td><td>10.1<\/td><\/tr><tr><td>IBM<\/td><td>2011<\/td><td>20%+<\/td><td>0<\/td><td>9.8<\/td><\/tr><tr><td>American Express<\/td><td>1995<\/td><td>20%+<\/td><td>2<\/td><td>7.67<\/td><\/tr><tr><td>Kraft Heinz<\/td><td>2007<\/td><td>11.10%<\/td><td>10<\/td><td>13.62<\/td><\/tr><tr><td>McDonald<\/td><td>1996<\/td><td>20.80%<\/td><td>0<\/td><td>14<\/td><\/tr><tr><td>Wells Fargo<\/td><td>1990<\/td><td>14.41%<\/td><td>20<\/td><td>3<\/td><\/tr><tr><td>\u3000<\/td><td>2015<\/td><td>\u3000<\/td><td>20<\/td><td>8.02<\/td><\/tr><tr><td>BNSF<\/td><td>2007<\/td><td>13.40%<\/td><td>20<\/td><td>9.6<\/td><\/tr><tr><td>Precision Castparts<\/td><td>2015<\/td><td>20.77%<\/td><td>1<\/td><td>13.21<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"120\" height=\"120\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/05\/filter-Custom.jpg\" alt=\"filtering rules\" class=\"wp-image-26240\"\/><figcaption class=\"wp-element-caption\">credit: ubuy.ug<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"block-9d402b81-75c9-41fa-9a2d-6be1252e074e\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/19\/investing-has-no-formula\/\" target=\"_blank\" rel=\"noreferrer noopener\">Investing has no formulas, but there are ways to invest successfully<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/27\/benjamin-graham-on-value-investing-grahams-bio-book\/\">&#8220;Benjamin Graham on Value Investing&#8221;, Graham&#8217;s bio book<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/09\/buffetts-acquisition-criteria\/\">Buffett&#8217;s Acquisition Criteria<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/27\/buffett-portfolio\/\" target=\"_blank\" rel=\"noreferrer noopener\">The commonalities of Buffett portfolio \u2013 cheap, fixed income, repurchase<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/17\/possibility-of-long-term\/\">Possibility of long-term holdings, Deep dive on Buffett&#8217;s case<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/07\/27\/survivorship-bias\/\" target=\"_blank\" rel=\"noreferrer noopener\">People believe successful investors are survivorship bias cannot succeed<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/07\/buffett-deserves-study\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why Buffett deserves further study?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/07\/buffett-investment-idea\/\">What helps Buffett to get his investment idea?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/30\/mergers-and-acquisitions\/\">Why most mergers and acquisitions end in failure?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/04\/minority-stake\/\">Why Buffett prefers minority stake to entire company?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/18\/institutional-imperative\/\">Institutional imperative \u2013 the good, bad, and ugly<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/06\/10\/berkshires-acquisition\/\">Berkshire&#8217;s acquisition model<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/30\/controlled-business\/\" target=\"_blank\" rel=\"noreferrer noopener\">Advantages of controlled business<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/22\/berkshire-shareholder-letter\/\">Buffett&#8217;s 2025 Berkshire Shareholder Letter<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/02\/25\/2024-shareholder-letter\/\" target=\"_blank\" rel=\"noreferrer noopener\">Buffett&#8217;s 2024 Annual Shareholder Letter<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/26\/2023-shareholder-letter\/\" target=\"_blank\" rel=\"noreferrer noopener\">Buffett&#8217;s 2023 Annual Shareholder Letter<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/05\/2024-berkshire-shareholders-meeting-transcript-and-video\/\" target=\"_blank\" rel=\"noreferrer noopener\">2024 Berkshire shareholders meeting transcript and video<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/09\/shareholders-meeting\/\" target=\"_blank\" rel=\"noreferrer noopener\">2023 Berkshire shareholders meeting transcript and video<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/17\/charlie-munger-2023-djco\/\">Charlie Munger speaks at 2023 Daily Journal Shareholders Meeting<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/26\/buffetts-first-tv-interview\/\">Buffett&#8217;s first TV interview<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/17\/buffett-squawk-box\/\">Full transcript of Buffett&#8217;s interview with CNBC&#8217;s Squawk Box<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/17\/outsiders\/\" target=\"_blank\" rel=\"noreferrer noopener\">Outsiders, one of the greatest investment books for management team<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/17\/dear-shareholder\/\">Dear Shareholder<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>As far as I can remember, Buffett has never emphasized the &#8220;formula&#8221; for numerical filtering in acquiring companies. Please note that he will not say &#8220;formula&#8221; again. But there are filtering rules of thumb, or his generalizations and suggestions.<\/p>\n","protected":false},"author":1,"featured_media":26240,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,346,654],"tags":[2,655,168,917,139,592,370],"class_list":["post-26239","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buffett","category-pe-ratio","category-roe","tag-aapl","tag-axp","tag-ibm","tag-khc","tag-ko","tag-mcd","tag-wfc"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/26239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=26239"}],"version-history":[{"count":18,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/26239\/revisions"}],"predecessor-version":[{"id":43249,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/26239\/revisions\/43249"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/26240"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=26239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=26239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=26239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}