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5 Key Investment Principles from Warren Buffett

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Warren Buffett is a mentor for a lot of traders. Why shouldn’t he be? After all, his investing principles have earned him the title of the world’s greatest investor. His way of working is a little contradictory to many others in the arena of online trading. He doesn’t invest the way it’s depicted in the popular media. He is the kind of investor who likes buying and holding.

Buffett has taught us that once you buy a stock, hold it no matter what. Forget that there is a recession in the economy or it is at its boom. Whether it’s good times or bad, you’re supposed to hold onto the stock.

Buffett doesn’t just buy stocks for the sake of holding them. He buys them for a specific reason. When those reasons no longer exist, he sells the stocks. He not only looks for good prices but sound management and a competitive advantage. He shared his opinion that companies such as IBM, Sears, and GM are great but they cannot stay competitive for long. Therefore, these companies shouldn’t be a part of your portfolio.

Why not learn from the pro himself and invest the right way? Here are 5 key principles to begin with:

1. Invest In What You Know

Before investing in a stock, it is very important to understand what a company does and how it makes its money. Ever wondered why Buffett has always avoided investing in tech stocks? It’s because he does not completely understand their business model. He sticks to what he knows.

This also explains why he prefers investing in Berkshire’s stocks. It represents a diverse mix of stocks such as utilities, banking, and insurance and consumer products. All of these are businesses that Buffett understands very well. No wonder he has invested a significant amount of money here.

“Beware the investment activity that produces applause; the great moves are usually greeted by yawns.”  – Warren Buffett

2. Before Buying a Stock, List the Criteria

It makes sense to buy stocks on the basis of criteria, right? After all, you’re ensuring that you don’t end up investing in something unfavorable. You could be searching for stocks in a certain industry with a set price to earnings ratio.

Buffett never makes the price of the stock the sole criteria of his buying decision. Sometimes, great companies end up taking a price dip because of the market situation. However, holding onto these stocks could still turn out to be favorable.

3. Be Aggressive During Tough Times

Generally, it’s not recommended to time the market. But if you’re a long-term investor, you’ll be fine no matter when you buy. This means that even during the tough economic times, you shouldn’t settle down. Keep on looking for opportunities. This is what Warren Buffett does because he knows that things will eventually turn around.

Buffett is known for capitalizing on opportunities during and after the great recession. Bank of America investment is one of the best examples of this. In his latest annual letter, Buffett said that “dark clouds will fill the sky almost after every decade. But it certainly will rain gold.” So don’t despair, keep on investing.

4. Don’t Worry About the Day to Day Market Movements

Along with other tips, Buffett also said that you must only buy a stock if you are comfortable holding on to it in case the stock market shuts down for a decade. Since you are holding onto the stocks for 10 or more years, there is no point in losing sleep over the minor swings.

Ignore the headlines about the trade wars, the government shutdown, and other chaotic news. Instead, you focus on learning the potential growth of your company over the course of time. The fact is, stock prices keep on changing, but it’s not significant if the company’s business still has a bright future.

“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” – Warren Buffett

5. Buy Buffett’s Stocks

Buffett keeps everything simple when it comes to investing. If you don’t want to do the guesswork and research to figure out which stocks to buy, simply invest in the stocks Buffett already owns. But, make sure you understand the business. Buffett discloses his holdings publically each quarter. He has capital in companies such as Wells Fargo, Apple, and Bank of America. To keep things simple, you can buy the shares of Berkshire Hathaway itself.

Warren Buffett hasn’t been successful all by himself. He has a team of investors who help him do legal work and give him investment tips. He’s also a part of an advisor network because he understands that an investor needs all the help he can get. It’s amazing that a billionaire like him still listens to others.

Now that you know how to invest like Buffett, it’s time you prepare your investment strategy. These principles are not hard and fast criteria, they are simply a discipline strategy all investors should stick to. Along with these, you can use math, technical analysis, fundamental analysis, and even stock charts to make a decision. You may not end up a billionaire, but you will avoid losses and make more profits than your fellows.

Which one of the 5 key investment principles from above resonated with you most? Let us know below!

Linda Whitt is a social critic, movie buff, tech junkie, animal lover and writer. She writes professionally on varying subjects that include e-commerce, business, and tech news and lifestyle pieces. In her spare time, she likes to dabble in online trading, stocks and bonds. Linda also has an interest in financial news and has written many published blogs on the subject. When not working, you can find her at her favorite bookstore or local animal shelter.

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Change Your Mindset

The Secret Daily Routines Behind History’s Most Brilliant Thinkers

Uncover the daily rituals and hidden habits that powered history’s most brilliant minds to success.

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Why Daily Rituals Matter

Every great achiever has one thing in common: discipline. Behind the novels, inventions, discoveries, and masterpieces are small, consistent habits repeated daily. (more…)

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Did You Know

How to Turn a Simple Link-in-Bio Into a Powerful Brand Hub

Transform your forgotten bio link into a high-impact gateway that fuels engagement, clicks, and conversions across every social platform.

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link in bio best practices
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Social media is one of the greatest marketing tools in 2025. According to a recent study, some 86% of marketers globally use platforms like Facebook and Instagram for advertisements, while 94% use it for content distribution.  (more…)

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Personal Development

These 11 Habits Will Make You More Productive, Successful, and Confident

Boost your focus, confidence, and results with 11 powerful habits successful people use every day.

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Successful people love to help beginners. They have an incredible work ethic and rarely complain. As a result, others naturally look up to them and want to follow in their footsteps.

But here’s the truth: there’s no success without sacrifice. You’ll need to give up comfort, excuses, and sometimes even social approval to accomplish your goals.

Value comes from solving problems, and these 11 powerful tips will help you become more productive, successful, and confident, starting today.

1. Take Short Breaks After Finishing a Task

Psychology shows it’s important to reward positive behaviour.

After completing a big task or finishing a book, take five minutes to walk, stretch, or simply breathe. This quick reset helps your brain recharge and strengthens focus.

Many great writers swear by morning walks, solitude, and reflection can unlock creativity.

But if you refuse to take breaks, don’t be surprised when burnout hits. Your brain needs recovery time just as much as your body does.

2. Schedule Your Most Important Tasks First

Multitasking kills productivity. If you want to get more done, try time blocking, a method where you dedicate set periods for specific tasks.

Productivity expert Caitlin Hughes explains, “Time blocking involves scheduling blocks of time for your tasks throughout the day.”

For example, if you’re a writer:

  • Research your topic at night.

  • Write your first draft in the morning (don’t worry if it’s rough).

  • Edit in the afternoon, great writing comes from rewriting.

You can’t buy more time. Use it intentionally and without regret.

3. Eliminate Distractions from Your Workspace

Focus is the foundation of success.

According to Inc. Magazine, it takes an average of 23 minutes to recover from a distraction. That’s nearly half an hour of lost productivity every time you check your phone.

Put your phone away. Close unnecessary tabs. And yes, limit your Netflix binges.

Meeting deadlines consistently is one of the fastest ways to stand out and earn respect.

4. Take Full Responsibility for Your Life

Entrepreneur Derek Sivers once said, “Everything is my fault.”

This mindset doesn’t mean self-blame; it means self-ownership. Stop pointing fingers, making excuses, or waiting for others to change.

If your habits (like smoking or drinking too much) hold you back, it’s time to make better choices. Your friends can’t live your dreams for you; only you can.

5. Invest an Hour a Day in Learning New Skills

Knowledge compounds over time.

Whether you read books, take online courses, or practise a craft, consistent learning gives you a competitive edge.

I used to struggle with academic writing, but I improved by studying the work of great authors and applying what I learned.

Your past doesn’t define you; your actions do. Every new skill adds another tool to your arsenal and makes you more unstoppable.

6. Develop a Growth Mindset

Psychologist Dr. Carol Dweck introduced the concept of fixed vs. growth mindset.

  • A fixed mindset believes success is based on natural talent.

  • A growth mindset believes success comes from effort and learning.

Choose the growth mindset. Embrace challenges. See failures as feedback. In today’s fast-moving digital world, adaptability is your biggest advantage.

7. Learn Marketing to Reach People Who Need You

I once believed marketing was manipulative, until I realised it’s about helping people solve problems.

If your work provides genuine value, marketing is how you let others know it exists. Even Apple spends billions on it.

Don’t be ashamed to promote your skills or business. Without visibility, your ideas will never reach the people who need them most.

Creative professionals who understand marketing and sales have an unfair advantage.

8. Ask Your Mentor the Right Questions

Good mentors can fast-track your growth.

While mentorship often costs money, it’s one of the best investments you can make. Great mentors don’t care about titles; they care about your progress.

If you don’t have access to a mentor yet, books are your silent mentors. Read the best in your field, take notes, and apply what resonates.

9. Build Confidence Through Action, Not Affirmations

Author Ryan Holiday once said, “I don’t believe in myself. I have evidence.”

Confidence doesn’t come from shouting affirmations into the mirror; it comes from proof. Doing hard things, keeping promises to yourself, and following through.

When you consistently take action, your brain gathers evidence that you can handle whatever comes next. That’s real confidence, grounded, earned, and unshakable.

10. Focus on Your Strengths

Your strengths reveal where your greatest impact lies.

If people compliment you on something often, it’s a clue. Lean into it.

A former professor once told me I was creative, and that simple comment gave me the confidence to go all in. I studied creativity, applied it daily, and turned it into my career advantage.

Double down on your strengths. That’s how you build momentum and mastery.

11. Identify and Challenge Your Limiting Beliefs

Your beliefs shape your reality.

For years, I believed I couldn’t be a great writer because of my chronic tinnitus and astigmatism, sensory challenges that made concentration difficult. But over time, I realised those struggles made me more disciplined, observant, and empathetic.

Your limitations can become your greatest motivators if you let them.

Avoid shortcuts. Growth takes time, but it’s always worth it.

Final Thoughts

Becoming productive, successful, and confident isn’t about working harder than everyone else. It’s about working smarter, consistently, and intentionally.

You don’t need to overhaul your life overnight. Start small: take a break after your next task, schedule your priorities, or spend one hour learning something new.

Every habit you change compounds into long-term success. Remember, true change comes from practising new behaviours.

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Success Advice

Why One-Size-Fits-All Leadership Will Always Fail (and What Works Instead)

The surprising truth about leadership styles that can make or break your team’s success.

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Why one-size-fits-all leadership doesn’t work
Image Credit: Midjourney

Leadership has always been as much about people as it is about performance. Ken Blanchard, in his influential book, “The One Minute Manager”, put it simply: different strokes for different folks. (more…)

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