Never invest in a business you cannot understand
Most news is noise, so avoid the hype. Buffett believes in taking in only select amounts of news and information that is helpful, instead of being inundated with too much useless information.
A low-cost index fund is the most sensible equity investment for the great majority of investors
Associate yourself with ‘high-grade people’. He believes, if you surround yourself with high-grade people, you will find your motivations moving in the right direction
Be fearful when others are greedy and be greedy when others are fearful. Save for downfall – Save enough to invest when the prices of great companies fall to get the best benefit.
6. It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price
Time is the friend of the wonderful company, the enemy of the mediocre. He believes the longer you invest the better you will get.
Never use borrowed money to invest
Keep it simple – Buffett himself follows a simple process to understand investing framework and he wants investors to invest in simple and understandable instruments only and using a process that one can easily digest
