From selling gums for profit as a child to converting Berkshire Hathaway to a giant group and one of the largest & P 500 components, Warren Buffett has shared an integral number of investment advice over the years.
Buffett is widely considered the greatest investor in all ages, so when he speaks, it is usually good to listen to our investor colleagues. It is not called “Oracle Omaha” for nothing.
Puffett announced his departure as CEO of the Hathaway Berkshire Hathawi at the end of the year during the company’s shareholders ’meeting 2025. Therefore, in honor of his endless flow from investment wisdom – Pavite resides as a president, so he has not fully retired so far – here are 9 basic investment lessons from 60 years of annual shareholders in Berkshire Hathaway.
1. Invest in the companies you understand
advice:
Just invest in companies you can accurately evaluate. And you have some humility – admit what you do not know, and do not invest in a job that you do not understand. Puffett Coca -Cola sold from the door to the door as a child, invested in the stock of Coca -Cola in 1988 and raised $ 776 million of profits in 2024.(1)
You don’t have to be an expert in every company, or even a lot. You just have to be able to evaluate companies in your efficiency circle. The size of that circle is not very important; Knowing its limits, however, is vital.
Shareholders ’message: 1996
2. Buy great companies at fair prices
advice:
Buy high -quality companies in reasonable reviews. Don’t buy a modest company just because it is cheap. Berkshire Hathaway bought a dessert in 1972 for $ 25 million and recorded profits before taxes of $ 1.65 billion from the company until 2011.(2) It was called “The Primary Form of Dreams”.(3)
It is much better to buy a wonderful company at a fair price From a fair company at a great price.
Shareholders ’message: 1989
3. Think in the long run
advice:
Avoid frequent trading and obtain long -term investments to take advantage of business growth. Over time, solid companies increase their profits, expansion and innovation.
In fact, when we have parts of distinguished companies with distinguished departments, Our favorite retaining period forever.
Shareholders ’message: 1988
4. Focus on the fundamental value
advice:
Invest based on the fundamental value of the company, not the market price. The markets can be irrational.
We define the fundamental value as the reduced value of money that can be removed from business during its remaining life. Any person who calculates the fundamental value necessarily comes with a very self -character that will change with the review of future cash flow estimates and the transfer of interest rates. Despite its ambiguity, however, The fundamental value is very important and is the only logical way to assess the relative gravity of investments and companies.
Shareholders ’message: 1994
5. Be greedy when others are afraid
advice:
Buy when the markets are pessimistic to secure the assets of less than their value. Stay rationally when others lose their heads. In 2008, during the global financial crisis, Pavite invested $ 5 billion in Goldman Sachs’s favorite share. Goldman Sachs replaced the stocks in 2011, and won the Hathaway Berkshire profit of $ 3.7 billion.(4)
However, what we know is that the previews of the offer are among these two superior illnesses, fear and greed, will happen forever in the investment community. This epidemic timing cannot be predicted. The market deviations that they produce will be unexpected, both in time and degree. Therefore, we never try to expect or leave any of the disease. Our goal is more modest: We are simply trying to be afraid when others are greedy and be only generous when others are afraid.
Shareholders ’message: 1986
6. Avoid emotional investment
advice:
Make investment decisions based on analysis, proper sense and proper judgment, not emotional reactions. Avoid getting a cliff in fear and greed.
In my opinion, the success of the investment will not be produced by Arcane formulas, computer software, or signs that stock and market behavior flash. instead of, The investor will succeed by associating a good business ruling with the ability to isolate their ideas and behavior from the high feelings hovering around the market.
Shareholders ’message: 1987
7. Ignore the market noise
advice:
Focus on the basics of the company and the long-term prospects-the business it invests-not the short-term market predictions or media noise.
Forming overall opinions or listening to total predictions or market for others is a waste of time. In fact, it is dangerous because it may obscure your vision of the really important facts. (When I hear television commentators, they stop frankly on what the market will do after that, I am reminded of the amazing Mickey Mantle’s comment: “You don’t know how easy this game is until you enter this broadcasting booth.”
Shareholders ’message: 2013
8. The value of the competent department
advice:
Think of investing stocks as a partial owner of a company. Who do you want next to you? Investing in companies run by honest and sufficient managers.
We choose our marketable financial papers in the same way that we will evaluate to gain completely. We want the work (1) that we can understand, (2) with long -term prospects, (3) Managed by affairs and specialists And (4) is available at a very attractive price.
Shareholders ’message: 1977
9. Patience is a virtue
advice:
Wait for the investment opportunities that meet your standards, and avoid unnecessary work. Likewise, give your investment time to grow and trust in the long -term capabilities of strong companies.
Patience can be learned. The full attention and the ability to focus on one thing for a long time is a great advantage– Charlie Monger thought.
Shareholders ’message: 2022
The bottom line
Warren Buffett contracts are summarized from the shareholders ’messages to this: Invest in what you understand, stay disciplined and play the long game with patience. From choosing companies with strong basics to stay patient for the right opportunity, Bavite lessons and a tried and reliable road map are more intelligent.
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