"[[Warren Buffett|Buffett]] studied [[Lubrizol]]’s annual reports. He did not comprehend all of the chemical science, except to appreciate that petroleum additives are indispensable to running engines. **However, understanding a business’ arcane details is far less important than grasping the economic characteristics of its industry and the company’s position**, Buffett says. After speaking with [[David Sokol|Sokol]] and lunching with [[Hambrick]] on February 8, [[Warren Buffett|Buffett]] had a sense of Lubrizol’s culture and found the company’s prospects favorable. ([Location 2782](https://readwise.io/to_kindle?action=open&asin=B00K33E460&location=2782)) --- **Tags** -- [[quotes]], [[organisational-culture]] , [[acquisitions]] , [[valuations]], [[intangible-assets]] , **Source** -- [[202407260951 - B - Berkshire Beyond Buffett]]