Warren Buffett turns 96: Top 10 investing lessons from the Oracle of Omaha

Warren Buffett, one of the world's most iconic business figures and widely known as the "Oracle of Omaha," turns 96 today. It is his first birthday since he stepped down as chief executive of Berkshire Hathaway after six decades at the helm.

Buffett is no longer Berkshire's CEO, but remains chairman of the board and continues to be involved in the company. He has also continued to make major investment decisions, including building what is now a $36.6 billion stake in Google's parent company, Alphabet, in recent quarters.

Buffett took control of a struggling textile company in 1965 and transformed it into Berkshire Hathaway, now valued at more than $1 trillion, with annual after-tax operating earnings of about $45 billion.


Despite his enormous financial success, Buffett has maintained a famously simple lifestyle, including his fondness for Cherry Coke and burgers. He continues to work from an office in his hometown of Omaha, Nebraska, rather than from Wall Street.

Buffett handed over the CEO role to longtime deputy Greg Abel on January 1, 2026, and has pledged to donate the vast majority of his wealth.

Buffett's six decades in business have produced a long list of investing principles and memorable quotes.

Here are the 10 investing lessons from Warren Buffett:

1. Don't overpay for stocks

Buffett has built his investment philosophy around buying quality businesses at attractive prices. He has rarely bought at more than 15 times forward earnings, maintaining discipline even when investing in high-profile companies such as Apple and Coca-Cola.

The approach puts downside protection ahead of potential upside. By analysing businesses closely and focusing on predictable cash flows and clean balance sheets, investors can reduce the risk of permanent losses during market downturns.

2. Be patient, but take profits when needed

Patience has been one of Buffett's defining characteristics. Berkshire's capital structure has allowed him to hold some stocks for decades rather than trade around quarterly results.

Buffett has famously said, "Our favourite holding period is forever." His long-term holdings have included Coca-Cola, American Express and Wells Fargo.

At the same time, he has trimmed or exited major positions in companies including Apple, Bank of America, JPMorgan Chase, Goldman Sachs, Citigroup and Paramount Global in recent years.

Buffett has also openly acknowledged his investment mistakes, including what he described as his "most gruesome" investment in the bankrupt Dexter Shoe Co.

3. Stick with what you know

Buffett has repeatedly stressed the importance of staying within one's "circle of competence."

"You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital."

Buffett famously avoided technology stocks during the dot-com boom of the late 1990s because he believed forecasting the long-term survival of young technology companies was outside his expertise.

The Nasdaq subsequently collapsed by as much as 75% between 2000 and 2002.

When Berkshire eventually made a substantial investment in Apple in 2016, Buffett based the decision on consumer habits and brand loyalty rather than technology itself.

4. Keep emotions out of investing

Buffett has repeatedly emphasised the importance of maintaining an even keel during financial crises and market downturns.

At Berkshire's 2025 annual shareholders meeting, he told investors to "check your emotions at the door when you invest."

He put the principle into practice following the 1987 US market crash, investing roughly $1 billion in Coca-Cola in 1988 and 1989. By 2025, Coca-Cola's share price alone had climbed nearly 2,800% from his original purchase price.

During the 2008 global financial crisis, Buffett also sought out struggling but high-quality companies and offered cash in exchange for coveted share packages.

In 2008, he invested $5 billion in Goldman Sachs and made a profit of $500 million, excluding dividends, when the company bought back its shares in 2011.

5. Start investing early

Buffett began investing at the age of 12, when he bought Cities Service preferred stock in 1942.

His wealth accumulated gradually. At 21, Buffett's net worth was $20,000. It took him more than 13 years to become a millionaire and more than 33 years to become a billionaire, at the age of 55.

His career illustrates the role of patience and compounding in long-term investing.

6. Learn from great teachers

Buffett was a student of economist Benjamin Graham, known as the "father of value investing."

He studied under Graham at Columbia Business School and later worked at Graham's investment firm before setting out on his own.

Graham's influence helped shape Buffett's focus on identifying companies that are undervalued, or trading below their intrinsic worth.

7. Concentrate when conviction is high

Buffett has not always followed a highly diversified approach.

At the end of the second quarter of 2025, five stocks—American Express, Apple, Bank of America, Coca-Cola and Chevron—accounted for nearly 70% of Berkshire's roughly $300 billion equity portfolio.

Buffett himself holds more than 99% of his net worth in Berkshire shares, a stake valued at about $150 billion.

The approach is to concentrate investments when conviction is high rather than spread capital indiscriminately.

8. Hire strong managers and trust them

Buffett's management style has long involved giving substantial autonomy to the leaders of Berkshire's subsidiaries.

The approach is straightforward: hire capable managers and trust them to run their businesses.

Buffett's decision to remain active after stepping down as CEO also reflects his belief that work can continue well beyond traditional retirement.

Turning 65 did not slow him down, with Berkshire shares climbing thirtyfold since then. Buffett has long said that traditional retirement is not for him or his top executives.

9. Protect shareholders from dilution

Berkshire has avoided issuing stock for acquisitions and has never granted stock-based compensation.

As a result, the company's share count has increased by only about 40% since 1965.

Protecting shareholders from unnecessary dilution has been another important part of Buffett's approach to capital allocation.

10. Love what you do

Buffett has famously described his daily routine as "tap dancing to the office."

Even after handing over the CEO role, he plans to remain active as Berkshire's chairman and continue working daily in 2026.

His career reflects a long-standing belief that work should be something a person enjoys rather than something endured until retirement.

Protecting reputation is as important as protecting capital

Buffett's philosophy extends beyond investing to corporate governance and reputation.

"It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently."

For Buffett, strong corporate governance and an ethical culture are essential for long-term survival. Protecting reputation, like protecting capital, is about avoiding losses that can be difficult to recover from.

Buffett's lessons amid market greed and fear

Buffett's investment philosophy has also remained relevant during periods of sharp market gains and high valuations.

He once said: "You only find out who is swimming naked when the tide goes out."

The idea is that a rising market can make almost everything appear to be working, while a downturn exposes companies with weak financials, poor management or accounting problems. Investors, therefore, should focus on companies with robust financials and sound management.

Buffett has also said that greed, fear and folly among people are predictable, though the sequence is not.

Greed can dominate during a rising market, fear can return when sentiment deteriorates, and folly can emerge when investors rush into overheated markets despite alarming valuations.

His most famous advice remains particularly relevant in such conditions: be "fearful when others are greedy and greedy when others are fearful."

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)