"Never invest in a business you cannot understand."
Buffett avoided dot-com stocks in the 1990s and was mocked for it. Then the bubble burst. He stuck to Coca-Cola, banks, insurance, and consumer brands — businesses whose economics he could explain simply.
"Our favourite holding period is forever."
Buffett has held Coca-Cola since 1988 and American Express since the 1960s. His wealth exploded not from trading but from holding great businesses for decades and letting compounding do the work.
"Price is what you pay. Value is what you get."
The core of value investing: a great company at a bad price is a bad investment. A decent company at a great price can be a spectacular one. Buffett always waited for Mr Market to go on sale.
"I look for economic castles protected by unbreachable moats."
Buffett only buys companies with durable competitive advantages — brand strength (Coca-Cola), switching costs (American Express), or cost dominance (GEICO) — that protect profits from competition for decades.
"Be fearful when others are greedy and greedy when others are fearful."
Buffett invested $5 billion in Goldman Sachs during the 2008 financial crisis when every other investor was fleeing. He invested in Apple in 2016 when the Street was bearish on iPhone growth.
"Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1."
This is not about never having a losing trade. It is about protecting capital as a first principle. Buffett has always prioritised downside protection — never using leverage recklessly and always keeping a cash reserve.