If you’ve ever wondered how to invest like Warren Buffett, you might assume it’s all about numbers, complex financial models, or secret investment formulas. But Buffett himself gives a much simpler answer: 

“I would just read the Graham and the Phil Fisher books. And then read lots of annual reports, think about businesses, and try and think about which businesses you understand and which you don’t understand.” 

That’s it—no magic tricks, no insider information—just understanding businesses. This principle forms the core of the Warren Buffett investing strategy, a method that has helped him identify some of the best investment strategies and legendary Warren Buffett stock picks over the years. 

But what does this mean for everyday investors? And how can someone without a finance degree or Wall Street connections apply this wisdom? Let’s break it down with long-term investing tips inspired by Buffett himself. 

Step 1: Master the Warren Buffett Investing Strategy with Graham and Fisher 

Buffett credits two investing legends for shaping his thinking: Benjamin Graham and Philip Fisher. Their approaches were different, but together, they created the foundation for intelligent investing principles that Buffett follows to this day. 

Benjamin Graham: The Value Investor 

Graham, Buffett’s mentor, believed in fundamental analysis in investing and buying stocks that were trading below their true worth. He saw stocks as pieces of real businesses, not just ticker symbols bouncing on a screen. His book, The Intelligent Investor, is widely regarded as one of the best books on investing, and its core principles include: 

✔ Margin of Safety: Only buy stocks when they are significantly undervalued, providing a buffer against market downturns.

✔ Mr. Market: Treat the stock market like an emotional business partner who offers to sell you shares at different prices daily. Buy only when the price makes sense. 

Graham’s strategy is like shopping for high-quality goods at a massive discount. Warren Buffett portfolio decisions often follow this same principle—finding value where others aren’t looking. 

Philip Fisher: The Growth Investor 

While Graham focused on numbers, Fisher emphasized long-term investing tips and the importance of business quality. His book, Common Stocks and Uncommon Profits, teaches investors that finding exceptional businesses is just as important as getting a good deal. 

✔ Look for businesses with long-term growth potential: Companies with strong leadership and innovative products tend to thrive.

✔ Management matters: Fisher believed great leaders create great companies. He encouraged investors to evaluate how management treats employees, customers, and shareholders.

✔ Scuttlebutt Method: Instead of just reading financials, Fisher recommended talking to employees, customers, and competitors to get real insights. 

Buffett successfully blended Graham’s focus on value with Fisher’s emphasis on quality, creating a stock market long-term strategy that has made him one of the greatest investors of all time. 

Step 2: How to Invest Like Warren Buffett—Analyze Annual Reports Like a Pro 

Buffett spends 80% of his day reading—not because he enjoys long reports, but because the more you understand businesses, the better your investment decisions. 

So, where should you start? 

Read Annual Reports – Every public company release annual reports, which provides: 

• How the company makes money (business model) 

• Whether it’s profitable and growing (fundamental analysis in investing) 

• How much debt it has (financial health) 

• Key risks it faces (market challenges)

Compare with Competitors – Don’t just read one report. Compare companies within the same industry to see who’s more profitable and innovative. 

Follow the Money – Profits can be manipulated, but cash flow tells the real story. Buffett always looks at how much cash a business generates versus how much it spends. 

This approach is why Warren Buffett stock picks focus on strong, financially stable businesses, not just trending names in the market. 

Step 3: Value Investing for Beginners—Stick to Businesses You Truly Understand 

One of Buffett’s golden rules is:

“Never invest in a business you don’t understand.”

This doesn’t mean you need a finance degree. It simply means: 

Know how the company makes money: If you can’t explain it in one sentence, you probably shouldn’t invest.

Understand the risks: Every business has risks. If you don’t know what could go wrong, you might be in for an unpleasant surprise.

Think long-term: Can you see this company thriving in 10, 20, or 30 years? 

Buffett famously avoided dot-com stocks in the 1990s because he didn’t understand tech businesses. People laughed at him—until the bubble burst. This is why sticking to businesses you understand is one of the best stock market tips for beginners. 

Step 4: Best Investment Strategies—Think Like a Business Owner, Not a Stock Trader 

Most people treat stocks like lottery tickets, buying and selling based on price movements. Buffett, however, views stocks as ownership in a real business. 

Imagine you’re buying a local coffee shop: 

Do customers love the product?

Is it making consistent profits?

Does it have an edge over competitors? 

That’s exactly how Buffett picks stocks. He asks himself: Would I want to own this entire business for the next 20 years? If the answer is yes, he invests. If not, he walks away. 

This mindset is why how to build a stock portfolio isn’t about picking “hot stocks.” It’s about carefully selecting businesses you believe in and holding them for the long run. 

Step 5: Long-Term Investing Tips—Be Patient and Let Your Wealth Grow

Everyone wants to get rich fast, but Buffett’s success comes from intelligent investing principles and patience. Instead of chasing quick wins, he buys great businesses and holds them for decades. 

✔ Coca-Cola (KO) – Buffett started buying Coca-Cola in the late 1980s. More than 30 years later, it’s still in his portfolio. Why? Because it’s a timeless brand with consistent profits.

✔ Apple (AAPL) – Buffett invested in Apple not just as a tech stock but as a consumer brand with loyal customers and strong financials. 

Buffett calls this approach “waiting for the right pitch.” You don’t have to swing at every stock. Be patient, wait for great businesses at great prices, and let time do the work. 

Final Thoughts: Start Thinking Like Buffett Today 

Buffett’s success isn’t about secret formulas—it’s about financial intelligence, patience, and sticking to what works. By following his Warren Buffett investing strategy, you can build a strong portfolio based on timeless investing principles. 

If you’re just starting, focus on:

✔ Reading best books on investing (start with Graham and Fisher)

✔ Learning how to read an annual report to understand businesses

✔ Following stock market long-term strategy instead of chasing trends

✔ Treating stocks like real businesses—not just numbers on a screen 

The key takeaway? Investing doesn’t have to be complicated. If you focus on understanding businesses and making smart, patient decisions, you’ll be ahead of most investors. 

So, take Buffett’s advice: Start reading, start thinking, and start investing in what you truly understand. Your future self will thank you. 

Now, over to you—what’s your biggest takeaway from Buffett’s approach? 

Share your thoughts in the comments!

Read: Who are Intelligent Investors? Timeless Principles for Value Investing