Skip to main content
NY Home homeNews home
Story

5 Ways To Adopt Warren Buffett’s Long-Term Approach to Investing

Caitlyn Moorhead

4 min read

It’s said that patience is a virtue, and we see this truth shine often, especially in the realms of personal finance and long-term investing strategies. Just look at Warren Buffett for an example. With a current estimated net worth of $154.1 billion, Buffett began growing his substantial funds from humble beginnings.

Advertisement: High Yield Savings Offers

Powered by Money.com - Yahoo may earn commission from the links above.

Find Out: How To Get a 10% Return on Investment (ROI): 10 Proven Ways 

Consider This: Here's the Minimum Salary Required To Be Considered Upper Class in 2025

Among his most famous and respected philosophical approaches to wealth building is investing for the long haul. This means not bailing on stocks just because of market turbulence or ditching a real estate investment when the housing market takes a hit.

“Buffett’s approach to investing focuses on investing in companies with ‘good business’ — sustainable and uncomplicated businesses with solid management teams,” said Ayako Yoshioka, a chartered financial analyst (CFA) and portfolio consulting director at Wealth Enhancement Group.

“Companies that can generate enough profits to return funds to shareholders in the form of dividends. Buffett also likes companies with deep ‘moats’ or competitive advantages, so companies that rise above their competition fit this style.”

Keep in mind, however, that Buffett doesn’t always hold to this tenet; for example, he’s not in favor when an investment isn’t built on a sound foundation or guided by excellent leadership. Simply put, he’s not fearful when others are greedy.

Here are five ways to adopt Buffett’s long-term approach to investing.

Before you consider the ways in which you can adopt Buffett’s long-term approach to successful investing, first explore why this method is best for your wealth-building goals.

“Investing for the long term is the only way you can make money from data and analysis and [applying] your only two assets that matter: your brain and hard work,” said Eldad Tamir, founder and CEO of Tamir Fishman Group.

“Buffett’s approach acknowledges that, while markets can be efficient in the long run, they often misprice securities in the short term, creating opportunities for informed investors,” Tamir continued. “In addition, investing with a margin of safety and focusing on intrinsic value prevents downside risk. But most importantly, this philosophy advocates for making decisions based on rational analysis rather than emotional reactions to market volatility.”

When diving into investing, be discerning about the investments you’ll keep. Buffett would advise this to any new investor or his company Berkshire Hathaway’s shareholders.