Warren Buffett spells it out

It's official ... the Sage of Omaha pronounces the R word. And since he's now the richest man in the world we ought to sit up and take notice. So what's his secret? While falling stock prices signal a recession, Buffett focuses on other metrics. He analyzes and pores over the underlying economics of his investments - if the fundamentals are solid and a company is generating consistent bottom-line growth, ultimately the share price will reflect that. Buffett rides out short-term fluctuations and reaps the rewards of increased earnings and/or dividends over time.

Commissioned by Real Business magazine.