The Sainted Seven Plus One Framework
A framework for evaluating business performance
The Sainted Seven Plus One Framework is a method of evaluating business performance by considering the economic characteristics of a company's businesses. The framework involves identifying the key factors that contribute to a company's success and evaluating its performance based on those factors.
- Identify the key factors that contribute to a company's success.
- Evaluate a company's performance based on those factors.
- Consider the economic characteristics of a company's businesses.
- Identify the key factorsIdentify the key factors that contribute to a company's success, such as management quality, industry characteristics, and competitive position.Pro tipUse a comprehensive approach to identify the key factors.WarningBe aware of potential biases in the identification process.
- Evaluate the company's performanceEvaluate the company's performance based on the identified key factors.Pro tipUse a weighted average approach to evaluate the company's performance.WarningBe aware of potential biases in the weighting process.
- Consider the economic characteristicsConsider the economic characteristics of the company's businesses, such as industry trends and competitive position.Pro tipUse a comprehensive approach to consider the economic characteristics.WarningBe aware of potential biases in the consideration process.
Berkshire Hathaway used the Sainted Seven Plus One Framework to evaluate the performance of its businesses in 1989. The company identified the key factors that contributed to the success of its businesses and evaluated its performance based on those factors.
The Sainted Seven Plus One Framework was first introduced by Warren Buffett in his 1989 letter to Berkshire Hathaway shareholders. Buffett used the framework to evaluate the performance of Berkshire Hathaway's businesses.