Warren Buffett: Filters 

“Well, we do have filters. And sometimes those filters are very irritating to people who check in with us about businesses – because we really can say “no” in 10 seconds or so to 90%+ of all of the things that come along simply because we have these filters. First, we want businesses that we can understand. And that filters out a lot of things. Second, we want ’em to be good businesses. How do our filters deal with fast changing technology? Very simply. If something has a significant technological component or we think future technology could hurt its business as it presently exists, we look at it as something to worry about. And it won’t make it through our filters. But we have some filters in regard to people, too. We want businesses that are being run by people who we’re very comfortable with – which means people with ability and integrity. And we can do that very fast. We’ve heard a lot of stories in our lives.” –Warren Buffett (1998 Berkshire Hathaway Annual Meeting, via Outstanding Investor Digest).