Margin masters

Warren Buffett advocated finding companies with high profit margins. Operating profit margin is an important metric to consider before investing in the shares of a business or the bonds issued by it. For a business to survive in the long run, it has to generate profits. A low profit margin means less profits, which may in turn mean less money for expansion, and lead to the increased use of debt. On the other hand, a high margin points to a company's ability to tap new opportunities.