How Warren Buffett Picks Stocks: 12 Principles

Warren Buffett picks stocks using four sets of filters: business, management, financial and value tests.

The famous twelve principles come from Robert Hagstrom's The Warren Buffett Way, distilled from decades of Berkshire Hathaway annual letters.

UK investors can apply the framework on the LSE, but the FTSE 100 is a shallower pool of Buffett-style businesses than the S&P 500.

If running this yourself sounds like hard work, just buy Berkshire Hathaway B-shares inside an ISA, or hold a global tracker and stop reading.