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Warren Buffett's Checklist for Investing

Tomorrow’s Fortune
Welcome to the action-packed newsletter designed to help you navigate the world of business and investing. If you missed last week’s post, check it out here. 😎
Today’s Digest:
Invest Like the Best: Warren Buffett has an incredible and simple checklist to understand a good vs bad business and how to invest in the right opportunities
What’s Happening in the Markets? Trump Announces US x UK Trade Deal, China Imports Still Rolling, Renters keep Renting and Google Takes a Tumble
Wanna Buy a Business? We found a high-profit Full-Suite Plastering Service Company ($550K of Cash Flow). Click HERE for the listing
TOP STORY
Warren Buffett’s Business Buying
His Retirement, His Legacy, and the 12-Question Checklist Every Investor Should Use
Warren Buffett has officially announced he will retire as CEO of Berkshire Hathaway—marking the end of an era not just for his company, but for the investing world.
For over six decades, Buffett redefined what it meant to be an investor. He turned $10,000 into hundreds of billions—not through speculation, but through an unshakable focus on quality, discipline, and cash flow. He made investing feel both deeply personal and rigorously analytical. And he gave everyday investors the conviction to ignore noise and think long-term.
Now, as he steps away, the most valuable thing he leaves behind isn't just Berkshire—it’s the system he used to evaluate every business he ever touched.
Inspired by Robert G. Hagstrom’s book “Warren Buffett Way”, here’s Buffett’s 12-part diligence checklist. It's how he decided which companies to buy, hold, or walk away from. In a market full of narratives, it’s a reminder that the best investors don’t chase stories—they ask the right questions.
Business Tenets
Understand it. Trust its track record. Believe in its future.
Is the business simple and understandable?
If you can’t explain the model clearly in a few sentences, it’s a pass. Complexity hides risk—and erodes conviction.Does the business have a consistent operating history?
Buffett wants multi-decade durability. Not “great quarter”—but “great across recessions, bubbles, and shakeouts.”Does the business have favorable long-term prospects?
The key word is inevitability. Utilities, railroads, and Coca-Cola didn’t need hypergrowth—they needed to be essential.