1. Look for highly profitable companies that generate cash.
(What to buy? A company with positive cash flow.)
2. Decide if the company's profitability is lasting. Look at its product and long term edge.
(New technology brings efficiency but the edge is fleeting. Destructive creation is continuous.)
3. Wait for the tide: when the business cycle turns grab the ones you have wanted for a long time. (When to buy? In the early Spring of a cycle - when snow just started to melt)