1. Measure Performance by "Per Share Progress"

Measuring performance of a company based on value of each share is one among the top investment tactics of Buffet. Paul L. Sloate, CEO and President of Green Drake Partners, an investment management firm, gives valuable insight into Buffet’s investment techniques.

According to Buffet, "Our long-term goal is to maximize Berkshire's average annual rate of gain in intrinsic business value on a per-share basis.  We do not measure the economic significance or performance of Berkshire by its size; we measure by per-share progress."

Sloate explains the essence of Buffet’s investment advice. Here, Buffet is concerned only with the gain in intrinsic value of the firms. He ignores “short-term fluctuations in value” of the stock or investment. You should look into how fast a firm can add to each of its stock value over a period of time and not just the number of shares being traded.