[header] How to use a formula to think like warren buffet [title] Avoid technology companies if you cannot easily understand them. [step] The same is true if they have competitors you cannot easily understand. Any time that you're not able to decipher the purpose, mission or actions of a company (or those of its nearest competition), that should be a warning sign to you as an investor. 
Invest in companies with strategies and goals that are transparent to you. [title] Avoid companies in industries with low profit margins.