Buffett’s most famous rule is: "Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1". This emphasizes over chasing high-risk returns. By avoiding catastrophic losses, the power of compounding can work uninterrupted. 2. Invest in What You Understand (Circle of Competence)
Warren Buffett ’s investment philosophy is often summarized into core "golden principles" that have guided his success at Berkshire Hathaway for decades. While various lists exist, the following 10 principles are consistently verified through his Annual Letters to Shareholders and major investment texts like The Warren Buffett Way . 1. Never Lose Money
A "moat" is a sustainable competitive advantage—like a strong brand, high switching costs, or a low-cost production advantage—that protects a company from competitors. Buffett seeks "economic castles" protected by these unbreachable moats. Warren Buffet's Investment Tenets - Simply Ethical
Stick to businesses within your "Circle of Competence". Buffett famously avoided technology stocks for years because he didn't feel he could predict their long-term economics as easily as a consumer goods company like Coca-Cola . 3. Look for an Economic Moat
