Three Ps of Buffettology. The three Ps are: Predictability, Price and People.
Predictability. Buffett's liking for some sectors and his famous refusal to get into some sectors like technology boils down to predictability. His investment choices are entirely based on products whose basic demand will remain predictable for decades to come. Not just that, the factors that will determine success or failure will also remain the same as they are today. At the core of Buffett's portfolio, there are companies that dominate businesses like soft drinks, shaving blades, candy, cheese, furniture, jewellery and (recently) railway freight services.
Price. This is the heart of value investing. Investments must be made at a low or at least fair price. This rules out any hot growth stocks, at least at any point of their history when they are widely recognised as growth stocks.
People. If you read what Buffett writes or says about his investments, he always lays great emphasis on the quality of management in his investments. Even in his private investments that he has taken complete control of, he ensures that the original management is not disturbed.
