Warren Buffett's 3 Criteria for Buying a Stock

Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is well known for his stock-picking prowess and his unwavering devotion to the buy-and-hold ethos. Following the publishing of the company's annual letter to shareholders this past weekend, we learned that, since 1964, Berkshire Hathaway's per-share market value has increased by 2,744,062%, which compares to a "meager" return for the S&P 500 of 19,784%, inclusive of dividends, over the same time span.

Having more than doubled up the S&P 500's compound annual gain over a more than five-decade stretch has earned the Oracle of Omaha quite the following, and has made his annual letter to shareholders a must-read for long-term investors.

Berkshire Hathaway CEO Warren Buffett at his company's annual shareholder meeting. Image source: The Motley Fool.

Source Fool.com