Warren Buffett believes the quality of a company's management is a key factor on whether a stock will be a good investment.
The Oracle of Omaha explains how the average investor can assess an executive team's competence in a clip found using CNBC's Warren Buffett Archive. He made his comments during Berkshire Hathaway's annual shareholder meeting in 1994.
"I think you judge management by two yardsticks," Buffett said. "One is how well they run the business, and I think you can learn a lot about that by reading about both what they've accomplished and what their competitors have accomplished, and seeing how they have allocated capital over time."