Berkshire Hathaway founder and chairman, Warren Buffett has offered a wealth of investment advice over the years. Known for his long-term approach to stocks, sticking to fundamentals, and taking calculated but thoughtful risks, the so-called ‘Oracle of Omaha’s’ wisdom often makes the rounds online.
In the investment circles, Buffett and his long-time business partner and friend, the late Charlie Munger, are known for their no-nonsense approach to doing business and relatively frugal lifestyles when compared to their immense wealth.
Known as the architects who transformed Berkshire Hathaway from a failing textile maker into an empire. Decades of compounded returns made the pair billionaires and folk heroes to adoring investors.
Notably, in January this year, Buffett handed over the reins and CEO position to successor Greg Abel. But his “bull run” with Berkshire has been legendary — gaining more than 55,00,000% returns over 60 years (1964-2024), to building the group to $1.2 trillion, and expanding Class A shares to worth $167 billion.
Here are top five tips from Buffett that still hold water:
- Don’t try to time the markets: Speaking to CNBC in 2016, Buffett noted that he never knows how the markets are going to do. But was confident that over a period of time, they will go up. “In terms of what’s going to happen in a week, or a month, or a year, I never felt like I knew. I never felt that was important,” he told the channel.
Notably, over the past five years, the NSE has returned 96.01% and the Sensex has given 90.24% cumulative returns over the same period, markets data from Mint showed.
- Don’t be afraid of dips: Further, the ace investor added that Berkshire is “almost always a buyer of stocks” noting that market dips are opportunities for retail investor to get their hands on premium stocks at lower prices.
A recent report by DSP Mutual Fund dropped its conservative stance on equities. It noted that valuations are compressing toward fair value. For large-cap stocks in particular, especially in banking, IT, healthcare and FMCG sectors, top names in the index are closer to historical valuation lows than highs. It did however stop short of calling this a market bottom and cautioned for investors to observe balance.
- Keep it simple: On the approach to investing and choices, Buffett has repeatedly noted that steady fundamentals are the most important aspect. He told CNBC, “I think every business should run as efficiently as possible — some are, some are not (and) we try to buy the ones that are (efficient).”
According to the billionaire, average investors should divide your funds as follows: Put 90% into low-cost S&P 500 index fund (for India the Nifty 50, Nifty 500 and BSE 500 are equivalent alternatives), and the remaining 10% in short-term government bonds i.e. government securities (G-sec).
Notably, over the past five years, the Nifty500 has given 118.91% cumulative returns, as per Mint data. For the same period, the BSE500 has returned 116.98%, the data showed.
According to CA Nitin Kaushik on X, the Nifty50 has delivered an average annual return of around 13% over the last 20 years, “effectively outperforming nearly 60% of actively managed large-cap funds”.
- Start young: Buffett told the channel that he bought his first stock at 11-years-old in April 1942 — just months after the attack on Pearl Harbour in the United States. Today, Buffett’s net worth is estimated at $142 billion, making him the 13th richest person in the world, according to the Bloomberg Billionaire Index.
For example, if you invest ₹10,000 at an annual interest rate of 8%, it will grow to approximately ₹14,693 in five years—an increase of ₹4,693 without any additional contributions. The longer you stay invested, the more powerful and dramatic this growth becomes due to the compounding effect.
CA Kaushik in another post on X noted, “If you start a ₹3,000 monthly SIP and let it run for 15 years at a 12% return, you end up with over ₹15 lakh from a total investment of just ₹5.4 lakh.”
The power of compounding cannot be denied. An investor who put ₹1 lakh every year starting from 2001 and continued till 2025 end has gained substantial wealth over time. The index, which stood at 3,262 in 2001, surged sharply in the following years, reaching 20,286 by early 2008. While this rally was interrupted by the global financial crisis, it rebounded strongly in 2009, delivering an impressive annual gain of around 81%, one of its best performances on record, and fully recouping the losses from the previous year. Momentum continued in the subsequent years despite dips and falls, with the Sensex hitting a record high of 86,159 in early 2026.
Overall, the Sensex has delivered a cumulative return of over 2,500% during this period. An investor who consistently invested ₹1 lakh every year and stayed invested through the end of 2025 would have seen their total investment grow to approximately ₹1.54 crore.
- Don’t believe the doomsayers: Buffett also does not believe that the markets are down for good. Noting that he began investing when the US entered the second World War, he stated: “The country’s not going to go away, the plants, people and talent are not going to go away. The country will grow in value over time.”
For Indian investors, the domestic market’s decline in March was direct hit from global uncertainties — the war in West Asia and rising oil prices. It was down 11.3% MoM and 15.3% from the Nifty 50’s 52-week high. But the key consideration is how long the conflict persists. Greater the duration, the potential economic and earnings damage is also higher.
However, Vinod Nair, Head of Research at Geojit Investments believes that over the medium term, the set-up looks constructive. “Based on Thursday’s close, a nominal return of 15% to 20% appears feasible, assuming the conflict concludes during April to May. The decline should continue to attract value buying, which has already been evident in recent sessions. Near-term risk remains centred on the final phase of US action and Iran’s response, which could further influence crude prices,” he noted.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
