Cover Warren Buffett (Photo: Getty Images)
Warren Buffett (Photo: Getty Images)
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As legendary investor Warren Buffett turns 96, here are principles from his six-decade career at Berkshire Hathaway that show how integrity, patience and wit helped him build a fortune
One of the world’s most iconic business figures, Warren Buffett is known for his financial success as well as his folksy, down-to-earth lifestyle and sense of humour. From 1965 to 2024, his holding company, Berkshire Hathaway, delivered compound annualised returns nearly double those of the S&P 500, the benchmark index of American companies; meanwhile, Buffett has maintained a humble diet of Cherry Coke and burgers, operating from an office far from Wall Street in his hometown of Omaha, Nebraska.
Buffett turns 96 today, his first birthday since stepping down as Berkshire’s CEO after six decades in the role. He handed the reins to Greg Abel, a longtime deputy, on January 1, 2026 and remains chairman of the board—leaving behind his role writing annual letters to shareholders. Buffett has also pledged to donate the vast majority of his wealth, including an announcement in July 2026 that he aims to give away his US$140 billion stake in Berkshire by the end of 2034.
Few figures in finance have generated quite as many aphorisms as Buffett, especially not ones that have survived the test of time. Here are the key quotes and ideas that summarise principles from Buffett’s 60 years in business and offer lasting insight for today’s corporate leaders.
Protect your capital and be patient
Above Warren Buffett on a 1985 TV interview with PBS’s show, titled Adam Smith's Money World.
“Rule No 1: Never lose money. Rule No 2: Never forget rule No 1.”
Buffett’s investment philosophy focuses on downside protection—measures taken to limit investment losses—before evaluating potential upside. By meticulously analysing companies and prioritising those with predictable cash flows and clean balance sheets, a Buffett-esque investor may avoid incurring permanent losses during market downturns.
Capital preservation is inseparable from Buffett’s other defining trait: patience. Thanks to Berkshire Hathaway’s unique capital structure, Buffett has held on to certain stocks for decades rather than trading around quarterly results. While losses may be unavoidable in investing, and Buffett has openly joked about his mistakes—including his “most gruesome” investment in the bankrupt Dexter Shoe Co.—he’s also benefited from investing in and holding shares in companies like Coca-Cola, American Express, and Wells Fargo, which have compounded well over 25 years. As he also put it, “our favourite holding period is forever”.
Other people’s panic can be an advantage
“Be fearful when others are greedy, and greedy when others are fearful.”
A student of the economist Benjamin Graham, known as the “father of value investing”, Buffett became renowned for identifying companies that were undervalued, or priced below their intrinsic worth. In the face of financial crises, which drive down the prices of these companies, Buffett has emphasised the importance of keeping an even keel to search for opportunities—or, as he said in Berkshire’s 2025 annual shareholders meeting, “check your emotions at the door when you invest”.
Buffett put this idea into practice after the 1987 US market crash, investing roughly US$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 saw another opportunity: he sought out struggling, high-quality companies and offered cash in exchange for coveted share packages. For one, by investing US$5 billion into Goldman Sachs in 2008, Buffett pocketed a tidy profit of US$500 million, excluding dividends, when the company bought back its shares in 2011.
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Staying within the bounds of what you truly understand prevents costly mistakes
Above Berkshire Hathaway’s 2026 shareholders meeting, which drew around 25,000 participants.
“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, arguing that forecasting the long-term survival of young tech companies fell outside of his expertise. In a 1999 speech at an event in Sun Valley, Idaho, Buffett issued a rare warning that soaring valuations for internet companies could not be sustained by underlying business fundamentals.
Buffett's caution proved prescient when the Nasdaq collapsed by as much as 75% between 2000 and 2002, wiping out trillions in market value. When Berkshire finally made a substantial investment in Apple in 2016—now the firm’s largest holding, accounting for roughly a fifth of its portfolio—Buffett made the call based on consumer habits and brand loyalty rather than technology itself.
Trust takes decades to earn and only moments to lose
Above Warren Buffett testifying about Salomon Brothers at US Congress in 1991.
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
In 1991, Buffett stepped in as interim chairman of the US investment bank Salomon Brothers after the firm admitted to submitting fraudulent bids in US Treasury bond auctions, with senior executives turning a blind eye to the violations for months without alerting regulators—a byproduct of the firm's cutthroat culture, as immortalised in the book “Liar’s Poker” by financial journalist Michael Lewis. With the US Treasury threatening to ban Salomon, which would have pushed the firm into bankruptcy and sent cascading effects through the wider financial system, Buffett—Salomon’s largest shareholder—intervened.
Testifying before Congress, Buffett apologised for the firm’s conduct and laid out a simple standard for Salomon employees to restore trust. “After they first obey all rules, I then want the employees to ask themselves whether they are willing to have any contemplated act appear the next day on the front page of their local paper, to be read by their spouses, children, and friends, with the reporting done by an informed and critical reporter,” he said.
“If they follow this test, they need not fear my other message to them,” Buffett added. “Lose money for the firm, and I will be understanding. Lose a shred of reputation for the firm, and I will be ruthless.”
Buffett’s stewardship helped Salomon survive the crisis, though the Salomon name was eventually wound down in 2003. While flashy products and savvy marketing can support short-term success, strong corporate governance and an ethical culture shape whether an organisation survives for the long haul. Keeping high standards avoids regulatory trouble, lowers borrowing costs—and, if Buffett is any proof, can help you grow old with grace.
Cat Wang is an editor at Tatler Asia based in Hong Kong, where she covers business, wealth, innovation, and impact. Previously, she was a Forbes Asia reporter and assistant editor of the Forbes Asia 100 to Watch list, spotlighting startups and small companies on the rise across the Asia-Pacific. She began her career as a trainee reporter at the South China Morning Post, Hong Kong’s newspaper of record. Born in New York City, she graduated from the University of California, Los Angeles, with a B.A. in political science.
