Warren Buffett’s top 10 Tips for Investors

He is considered — and not unjustly — the greatest investor of all time, with his value exceeding 100 billion dollars.

During his long career, his advice has been a “guide” for investors, who look for his next moves and try to copy his unique investment style.

Warren Buffett’s Ten Commandments

1. “Never invest in a business you don’t understand”

The investment world may often be surprised by the choices of the leading investor, but Warren Buffett always seems to know very well what he is doing. Even if it goes against the “stream”.

His strategy is based, as he himself has admitted, on a series of data, which he examines before taking the big step for an investment, and what he cannot explain, he does not approach.

For example, his aversion to Bitcoin can be justified by this phrase. The opportunity that millions of investors saw in the crypto market never moved the top investor, who called Bitcoin “stupid.”

He recently wondered at a shareholder meeting: “If you told me you owned all the Bitcoin in the world and you offered it to me for $25, I wouldn’t buy it. What should I do?’

2. “Forecasts can tell you a lot about…forecasts. But nothing for the future”

Warren Buffett has proven that he invests based on his instinct, the profile of a company, and the sector in which it operates. He is very careful in his choices but also loyal. His success was based for many decades on finding undervalued stocks, which then skyrocketed.

And his methodology “steps” on specific steps to evaluate specific parameters and criteria, which if a company does not meet them, it will not be selected.

3. “We are just afraid when others are greedy and we are greedy when others are afraid”

In a period for the markets described as the worst since 1970, in the first half of 2022, Warren Buffett remained very active.

The “great flight” from stocks did not deter the great investor, who made significant investments in oil, surprising even the most experienced analysts with his big bet on energy.

4. “It takes 20 years to build a reputation and only five minutes to destroy it. If he thinks about that, then you will function very differently”

For Warren Buffett, investing was a marathon. He bought his first shares at the age of 11, and managed in a course of 70 years to make the whole world talk about him, and consider that he is the only one who can correctly “guess” the unpredictable Wall Street.

Although he has made many mistakes in his career, which cost tens of billions to the investors of Berkshire Hathaway, of which he is the CEO, Buffett acknowledged them in front of meetings and continued to move forward with new bets, shooting up the profits of his company.

5. “Only when the tide is out to do you find out who’s swimming naked”

The above phrase was confirmed in yet another market crisis this year. Warren Buffett has avoided investing in tech stocks and crypto in previous years, two sectors that have soared through 2021.

Although Apple remains the largest investment in his portfolio, many companies that until six months ago saw their share price skyrocket have failed to catch the attention of the great investor.

The first half of 2022 saw a massive plunge in almost all crypto and tech companies, which saw their stock prices collapse within months, with investors losing billions.

6. “The best opportunity to increase your capital is when things are going down”

A very good period for “hunting” opportunities, Warren Buffett considers the general decline in the markets.

This is because the investor can look for stocks at a low price, undervalued stocks, which will recover later, bringing profits.

Warren Buffett is used to being a hunter of such opportunities, most recently buying 55 million shares of Citigroup, a bank whose shares have fallen 38% in the past year.

7.«The price is what you buy. Value is what you get”

He has not acquired the title of a value investor by accident. Warren Buffett looks for the low price of a company’s stock, but in order to proceed with a purchase, he wants to confirm that the company is based on a plan of profitability and not speculation.

That’s why the 91-year-old investor has managed to make a fortune buying shares of companies such as Apple, American Express, General Motors, UPS, Johnson & Johnson, Mastercard, and Walmart.

8. “The stock market is designed to move money from the active to the patient investor”

Patience is an essential quality for an investor, according to Warren Buffett, who insists that impatience can “kill” money.

That is why he bets on long-term options, patiently waiting for the recovery, as he believes in the sustainability plan of the companies he supports and not in the constant exchange of shares.

For Buffett, a company’s five-year plan is more important than a year’s earnings.

9. “You don’t need a complex thought. Simple thinking is always more effective”

The simplicity with which he moves in the field of investments is what seems to have led him to the top.

And that’s because he believes that you don’t need to be a genius to be a good investor. You just have to work hard and diligently.

10. “After so many years of investment, we haven’t learned how to solve hard problems. But we have learned how to avoid them”

The “easy” option is definitely not on Warren Buffett’s list, who consistently avoids companies driven too quick profits without a solid plan.

“When you’re promised quick profits, say no,” Buffett urges investors, reminding investors that an investment that sounds too good to be true has pitfalls.