How to Invest Like Warren Buffett

We've amassed a veritable library of Warren Buffett wisdom over the years, so we've compiled it in one place for readers to access

Susan Dziubinski 10 August, 2023 | 10:12AM
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Warren Buffett

Warren Buffett is one of the most respected investors of all time. But on paper, his investment strategy is pretty simple.

1) Buy businesses, not stocks. In other words, think like a business owner, not someone who owns a piece of paper (or these days, a digital trade confirmation).

2) Look for companies with competitive advantages that can be maintained, or economic moats. Firms that can successfully fend off competitors have a better chance of increasing intrinsic value over time.

3) Focus on long-term intrinsic value, not short-term earnings. What matters is how much cash a company can generate for its owners in the future. Therefore, value companies using a discounted cash flow analysis.

4) Demand a margin of safety. Future cash flows are, by their nature, uncertain. To compensate for that uncertainty, always buy companies for less than their intrinsic values.

5) Be patient. Investing isn’t about instant gratification; it’s about long-term success.

Naturally, what's simple in theory can be less so in execution.

If you want to emulate Buffett’s investment strategy, we’ve compiled some of Morningstar’s work on the approach he and partner Charlie Munger have pursued at Berkshire Hathaway.

We’ve also taken a look at funds that emulate Berkshire’s style and some of the undervalued stocks in Berkshire Hathaway’s portfolio today. We wrap things up with words of wisdom from Buffett on investing.

After Earnings, Is Berkshire Hathaway Stock a Buy, a Sell, or Fairly Valued?

Here’s our look at Berkshire’s second-quarter results and key factors in how we’re looking at the stock for Buffett’s company.

10 Funds That Buy Like Buffett in 2023

These mutual funds hold the same stocks as Warren Buffett’s Berkshire Hathaway.

12 Lessons on Money and More From Warren Buffett and Charlie Munger

Wisdom from two of the world’s most successful investors.

What We’ve Learned From Buffett and Munger

How these legendary investors have inspired the financial world and shaped the way we think at Morningstar.

How to Pick Stocks Like Warren Buffett

Berkshire Hathaway has traditionally benefited from being able to sniff out companies with moats, including for these holdings.

3 Things Investors Can Learn From Warren Buffett

Whether you’re new to the market or not, there’s plenty to learn from Berkshire Hathaway’s leader.

Even Warren Buffett Thinks Picking Stocks Is Hard

Great investing opportunities are rare, which is why indexing makes sense for most investors.

5 Takeaways From Berkshire Hathaway’s 2021 Shareholder Letter

Warren Buffett discusses why he keeps cash on hand, warns of “bloviated bull,” and explains why he’s not a stock-picker.

2020 Shareholder Letter Recap: Warren Buffett on Bonds, Buybacks, and Apple

What Berkshire Hathaway’s chair left out of this year’s annual shareholder letter is almost as notable as what he put in.

2019 Shareholder Letter Recap: 4 Takeaways From Berkshire Hathaway’s Annual Shareholder Letter

Warren Buffett addresses Berkshire Hathaway after his exit, the problem with corporate boards, and why equities are still the place to be long-term.

2018 Shareholder Letter Recap: Buffett Says Focus on the Forest, Forget the Trees

In his annual letter to Berkshire Hathaway shareholders, Warren Buffett argues why the whole is much greater than the sum of its parts—and comments on that sizable cash stake.

2017 Shareholder Letter: Stick With Big 'Easy' Calls

In his annual letter to Berkshire Hathaway shareholders, Warren Buffett makes the case for doing less and sticking to the fundamentals of investing.

2016 Shareholder Letter Recap: Indexing the Best Choice for Investors Large and Small

Berkshire Hathaway CEO Warren Buffett praises indexing and American dynamism in his 2016 letter to shareholders.

2015 Shareholder Letter Recap: America’s Economic Magic Is Alive and Well

America’s golden goose of commerce and innovation will continue to lay more and larger eggs, writes the Berkshire Hathaway chair and CEO Warren Buffett in his annual letter to shareholders.

2014 Shareholder Letter Recap: Berkshire’s Simple Secrets to Success

In the firm's annual letter to shareholders, Warren Buffett and Charlie Munger reflect on Berkshire Hathaway's history and future prospects.

2013 Shareholder Letter Recap: 3 Nuggets From Buffett’s Annual Letter

More clippings – and a few thoughts – for your Oracle of Omaha file.

2012 Shareholder Letter Recap: Don’t Hold Your Breath for a Berkshire Dividend

In his annual letter, Berkshire Hathaway chair and CEO Warren Buffett laid out a case against a Berkshire dividend and a case for more big acquisitions, and issued a reminder not to worry about short-term uncertainty.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Susan Dziubinski  Susan Dziubinski is senior product manager with

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