Mentioning Warren Buffett reminded me of a discussion I had with my family in regards to his success. They all agreed that Warren Buffett had a full understanding of the companies he invest in and is a great evaluator. They explained that he first invested into shares when the share market was not even mature yet, and evaluated the prospects of investing into various companies before anyone else thought of it.
However, a note to add from my parents is that total understanding about the invested companies are only viable for some people like Warren Buffett (or other rich investors). The reason behind this as they explained is that due to Buffett's reputation and massive wealth, companies tend to voluntarily hand over all necessary information about themselves to Buffett if he ever chose to invest in them since its a significant neutral gain for both parties.
I do not know if this is true or not but it does sound logical, and it makes me wonder about the odds of successful share investing with only a limited cash flow and understanding of the invested companies.
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