Warren Buffett, founder and chairman of Berkshire Hathaway, has offered a wealth of investing advice over the years. Known for his long-term approach to stocks, sticking to fundamentals, and taking calculated but thoughtful risks, the wisdom of the so-called ‘Oracle of Omaha’ is often circulated online.
In the investment world, Buffett and his longtime business partner and friend, the late Charlie MungerKnown for his no-nonsense approach to business and relatively frugal lifestyle compared to his immense wealth.
Known as architects of change Berkshire Hathaway From a failing textile manufacturer to an empire. Decades of compound returns made the pair a favorite of investors ranging from billionaires and folk heroes.
It is noteworthy that in January this year, Buffett handed over the reins and the post of CEO to his successor. greg abel. But his “bull run” with Berkshire has been spectacular – generating over 55,00,000% returns over 60 years (1964-2024), building the conglomerate to $1.2 trillion and expanding Class A shares to $167 billion.
Here are Buffett’s top five tips that still hold power:
- Don’t try to time the markets: Speaking to CNBC in 2016, Buffett said he never knew how. market Going to do. But there was confidence that they would go up with time. “In terms of what’s going to happen in a week, or a month, or a year, I never felt like I knew. I never felt like it was important,” he told the channel.
Notably, in the last five years, NSE has given a return of 96.01% Sensex Market data from Mint shows that it has given a cumulative return of 90.24% over the same period.
- Don’t be afraid of the fall: Additionally, the lead investor said Berkshire is “almost always a buyer.” sharesKeeping in mind that market declines are an opportunity for retail investors to acquire premium stocks at low prices.
A recent report by DSP Mutual Fund has removed its conservative stance on equities. It says valuations are shrinking towards fair value. Especially for large-cap stocks in the banking, IT, healthcare and FMCG sectors, the top names in the index are close to historical Evaluation Low compared to high. However, it stopped short of calling it a market bottom and cautioned investors to maintain balance.
- keep it simple: On the investment and options approach, Buffett has repeatedly said that stable fundamentals are the most important aspect. “I think every business should run as efficiently as possible — some are, some aren’t (and) we try to buy the ones that are (efficient),” he told CNBC.
According to the billionaire, average investors should divide their funds like this: Put 90% in low-cost S&P 500 index funds (for India) nifty 50Nifty 500 and BSE 500 are equivalent options), and the remaining 10% is in short-term government bonds i.e. government securities (G-Secs).
Notably, over the last five years, the Nifty500 has delivered 118.91% cumulative returns, according to Mint data. According to the data, BSE500 has given a return of 116.98% in the same period.
According to CA Nitin Kaushik at X, Nifty50 has given an average annual performance return About 13% over the past 20 years, “effectively outperforming about 60% of actively managed large-cap funds”.
- Start Young: Buffett told the channel that he bought his first stock at the age of 11 in April 1942 – just months after the attack on Pearl Harbor in the United States. According to Bloomberg, today Buffett’s net worth is estimated at $142 billion, making him the 13th richest person in the world. millionaire Index.
For example, if you invest ₹10,000 at an annual interest rate of 8%, it will grow to approximately ₹14,693-increase in five years ₹Rs 4,693 without any additional contribution. The longer you stay invested, the more powerful and dramatic the growth becomes due to the compounding effect.
In another post on X, CA Kaushik said, “If you start ₹3,000 monthly SIP And let it run for 15 years at 12% returns, eventually you will end up with ₹Only Rs 15 lakh from total investment ₹5.4 lakhs.”
The power of compounding cannot be denied. an investor who invested ₹Anyone earning Rs 1 lakh every year starting from 2001 till the end of 2025 has accumulated substantial wealth over time. The index, which stood at 3,262 in 2001, rose rapidly in subsequent years, reaching 20,286 in early 2008. While this rally was disrupted globally financial crisisIt bounced back strongly in 2009, delivering an impressive annual gain of nearly 81%, one of its best performances on record, and completely recouping the previous year’s losses. The momentum continued in subsequent years despite declines and falls, with the Sensex reaching a record high of 86,159 in early 2026.
Overall, the Sensex has given cumulative returns of over 2,500% during this period. an investor who invested continuously ₹If they had invested Rs 1 lakh every year, by the end of 2025 their total investment would have increased by approx. ₹1.54 crores.
- Do not trust those who destroy: buffet It also doesn’t believe that markets are down forever. Noting that he began investing when the US entered World War II, he said: “The country is not going to go away, the plants, the people and the talents are not going to go away. The value of the country will increase over time.”
For Indian investors, the domestic market’s decline in March was a direct result of global uncertainties – the war in West Asia and rising oil prices. It was down 11.3% MoM and 15.3% from the Nifty 50’s 52-week high. But the main consideration is how long the conflict lasts. The longer the period, the greater the potential economic and income loss.
However, Vinod Nair, head of research at Geojit Investments, believes that in the medium term, the set-up looks constructive. “Based on Thursday’s close, nominal returns of 15% to 20% appear possible, assuming the conflict ends during April to May. Prices should continue to decline to attract buying, which is already evident in recent sessions. Near-term risks focus on the final phase of US action and Iran’s response, which could impact further crude Prices,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We recommend investors to check with certified experts before taking any investment decision.