“Let’s take a look at what kind of businesses turn us on. And while we’re at it, let’s also discuss what we wish to avoid.” In his 2007 Berkshire Hathaway annual letter, Warren Buffett provides us with a primer on what to look for in businesses, and on what to avoid. He also does something rare – he gives us a detailed post-mortem analysis of his 1972 purchase of See’s Candies. Both have a lot of gems of wisdom for us to enjoy and learn from.

My first trip to the Berkshire Hathaway annual meeting in Omaha was over 20 years ago, in 2002. It was quite an initiation into the cult of Warren Buffett.

Most active investment managers underperform the market. It’s even worse after taxes. But you know that already. So why would you ever invest with an active manager?