Warren Buffett: Business Quality, Valuation and Discipline
Originally published 2025-05-18. Translation and editorial review: 14 October 2026. Market figures refer to the original reporting period.
If you want to be a "sustainable" investor, not just "temporarily good," try studying some simple concepts. But the power of one of the most respected men in the financial world: Warren Buffett.
He didn't spend his fortune. Or a secret formula based on a concept called Value Investing — value investing inspired by his teacher Benjamin Graham (Benjamin Graham).
🔎 Summary of Warren Buffett's investing principles (read and understand immediately)
1. Invest in What You Understand (Invest in What You Understand)
Do not invest in businesses that do not understand the income or risks.
Use the “Circle of Competence” as a compass.
2. Look for stocks that are “cheaper than their intrinsic value”
Assess the Intrinsic Value of the business
If the market price is lower than the actual value = “There is a good Margin of Safety”
3. Look at stocks as "businesses", not just "graphs".
Think of it like you're buying out the entire company.
Interested in the basics, not chasing prices based on the news.
4. Hold good stocks for the long term.
Good stocks should be held "for years" or "for life."
Time is a strong business friend.
5. Looking for an advantage (Economic Moat)
such as strong brand, patents, network, business size
Businesses with Moat will protect against competitors. and make continuous profits
6. The management team must be transparent and have vision.
Looking for executives who work for the business. Not for accounting
A CEO who thinks like a business owner is an invaluable asset.
7. Don't follow market trends.
“Be fearful when others are greedy, and greedy when others are fearful.”
Don't buy because other people do.
Invest with consciousness, not emotion.
8. Focus on ROE (Return on Equity).
Business that uses shareholder capital efficiently
ROE is high and consistent. is a sign of quality business
9. Avoid excessive debt.
Leverage is a double-edged sword.
Don't take unnecessary risks.
10. Good opportunities require courage to invest heavily.
If you are confident in stocks that meet the criteria → Dare to hold a high percentage.
“No need to distribute. If you are confident in what you know deeply.”
11. Cash is the secret weapon.
kept for use during a crisis.
Cash creates opportunities It's not a burden.
12. Patience is the key to winning.
“The stock market is a tool for transferring money from impatient people to calm people.”
“Invest in what you understand. It's not what other people are talking about.” — Warren Buffett
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