As a Warren Buffett fan Norman Rentrop is looking for similar conditions as Berkshire Hathaway when investing.
adapted from the ‘Essays of Warren Buffett’
Norman Rentrop solely invests in companies that meet the following criteria:
1. The company has annual profits of at least 3 million Euros (sum of reported profit and increase in earnings power).
2. Proven consistent profitability (we are not interested in long-term projections or turnaround situations).
3. The management love their job, not the money.
4. The company has a return on equity higher than 10% and at the same time has no or little debt.
5. The company has an existing management (we can’t provide managers outside subscription driven publishing business)
6. Competitive advantage must be defendable for 10 or more years.
7. The purchase price has to be fixed (we don’t want to waste neither our nor the seller’s time talking about a business – not even preliminary – when there’s no information about the price)