Berkshire Meeting: Berkshire's Investing Sweet Spot

Features Dow Jones Newswires

Baseball legend Ted Williams said a pitch down the middle of the plate was his sweet spot. Warren Buffett says it's a bit more complicated in investing.

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So, here's a simplified version of Berkshire's sweet spot:

--A business that Mr. Buffett decides will have a competitive advantage over the next five to 10 years.

--There is a trusted manager that fits Berkshire's culture and wants to be a part of their culture.

--Then, it's just a matter of price.

And price can just be luck sometimes, with the investing giants going into details of their purchase of See's Candies.

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"We've gotten a lot of credit for being smarter than we were," said Charlie Munger.

Click here to see the full live coverage of Warren Buffett at Berkshire Hathaway's annual meeting:

http://www.wsj.com/livecoverage/berkshire-hathaway-2017-annual-meeting-analysis

Write to Geoffrey Rogow at geoffrey.rogow@wsj.com

(END) Dow Jones Newswires

May 06, 2017 11:20 ET (15:20 GMT)