Warren buffet's investment strategy

The legendary investor warren buffet has a few investment philosophies in life which have been time tested and have held him in good stead during difficult periods. The strategy and principles that he has adopted for decades are the following:

1. He considers investing in shares as good as investing in a part of the business
of a company
2. He relies on the discounted cash flow method to arrive at the intinsic value of a
company and once he identifies value which is at a significant premium to the
prevailing market price, he goes ahead and buys that stock without any regard
whatsoever to market conditions. He is a typical long term player in the markets.
3. He will only invest in companies that have good pricing power, significant
economic moat and competitive positioning in the market place. He typically
prefers companies with strong brands.
4. He will not invest in companies that have high debt equity ratio and high capital
committments. Howvever buffet prefers companies with products that have reflation
potential.
5. He prefers companies that have a strong management that aims at generating higher
return on invested capital.
6. He would shy away from investing in companies that keep diluting their equity
base. Using additional funds to generate higher returns doesnt impress buffet.
7. Buffet has a huge war chest of funds that hes accumulated over the years from
berkshire's insurance business. Because of the size of funds involved, he
commands special concessions for his investment. The recent example being Goldman
Sachs where buffet subsribed to the preferred stock of the company with a 10%
fixed dividend and share warrants that can be subscribed at a price thats
significantly lower to the current market price.
8. Buffet follows the simple adage of buying when others are selling and vice versa.