Warren Buffett’s approach to investing emphasizes temperament and discipline over intelligence. He advocates for understanding a business thoroughly before investing, focusing on long-term holdings within one’s “circle of competence,” and remaining unaffected by market fluctuations or outside opinions. He stresses the importance of personal qualities like optimism, generosity, and dependability, suggesting these traits contribute more to long-term success than innate intelligence. Finally, Buffett advises buying when others are fearful and selling when others are greedy, acknowledging that market panics are inevitable.

• 🧠 Focus on Temperament, Not Intelligence: Buffett repeatedly emphasizes that a calm, rational temperament is more crucial to successful investing than sheer intelligence. He stresses the ability to remain objective during market swings.

• 🎯 Invest Within Your Circle of Competence: Buffett advises focusing on businesses you deeply understand. Don’t invest in areas you lack knowledge, regardless of market hype.

• 🕰️ Long-Term Perspective: He strongly advocates for long-term investment strategies, emphasizing the need to be prepared for significant short-term losses without panic selling.

• 🤔 Counter-Cyclic Investing: Buffett’s famous “be fearful when others are greedy, and greedy when others are fearful” strategy is highlighted as key to long-term success.

• 🤝 Cultivate Positive Personal Qualities: He emphasizes the importance of personal characteristics like optimism, generosity, and integrity, suggesting these traits are key to both personal and professional success.

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