Top 10 Warren Buffett Investment Strategies

Warren Buffett, often called the Oracle of Omaha, has built his wealth by following a set of simple yet powerful principles that anyone can learn from. He believes investors should only put money into businesses they truly understand, ones they can explain in simple words and that fall within their “circle of competence.” At the heart of his philosophy is the idea of intrinsic value, which means focusing on what a company is really worth based on its future cash flows rather than hype or speculation. He advises buying stocks when they are trading below their true value and then holding them for the long term, saying that his favorite holding period is “forever.” Instead of frequent trading, he relies on the power of compounding to grow wealth steadily. Buffett also stresses the importance of companies with a durable competitive advantage, or “moat,” which protects profits from competitors—this could be a strong brand, unique technology, or network effects. Equally important is management: he prefers businesses run by honest, capable, and shareholder-focused leaders. His famous advice to “be fearful when others are greedy, and greedy when others are fearful” reflects his contrarian approach, where downturns are opportunities to buy strong companies. He warns against blindly following the crowd and instead urges investors to focus on fundamentals rather than fads. For him, free cash flow matters more than accounting profits, and keeping debt levels low is essential, since it is risky to gamble with what you already have for something you don’t need. Above all, Buffett highlights patience and discipline—waiting for the right opportunity like a “fat pitch” in cricket, rather than swinging at every ball. These timeless lessons, rooted in simplicity and common sense, are especially valuable for Indian investors navigating today’s fast-changing markets.