How good is the business? Health of a business is decided by answering following questions: – Simple and understandable business – Consistency in Business – Good Long term prospects Simple and Understandable Business In order to analyze the prospects of a particular business, if we can say that a particular business is not so complicated to understand in terms of its customer base and operational requirements, then the business can be considered as good. Warren Buffett firmly believes that the “investor’s financial success is correlated to the degree in which they understand their investment”