A few takeaways:
- (Filter #1) The most important thing is to understand the business.
- (Filter #2) Look for a business with an enduring competitive advantage.
- (Filter #3) Invest with able and trustworthy managers.
- Filter out most prospective investments through inversion, i.e. businesses you don’t understand, businesses with lousy economics, etc.
- (Filter #4) Pay a price that makes sense and affords a margin of safety.