The complete phrase – “Great investment opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised.”
Warren Buffett sees strength in companies through careful evaluation of their business sustainability and profitability through financial statements. Once a company qualifies as a good investment under Buffett’s selection criteria, it will be shortlisted till opportunity arises. He likes to wait for a potential stock to have a margin of safety before buying it. Opporunities come when bad news or rumours affect the potential company, where he sees as a bargain to buy a good company.
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