Warren Buffett’s 5 Timeless Investment Principles:

1. Invest in what you understand.

Buy businesses with clear models—if you can’t explain it to a smart 10-year-old, you shouldn’t own it.

2. Look for a durable competitive advantage.

Invest in companies with strong brands, networks, or products that can’t easily be copied.

3. Focus on management integrity and talent.

Great leadership knows how to allocate capital wisely and run the business with discipline.

4. Demand strong financials.

Cash flow, low debt, and high return on equity are signs that a company’s built to last.

5. Buy at a fair price—not just a cheap one.

Buffett doesn’t chase low prices; he buys quality businesses at good value for long-term gains.

5 Stocks That Fit Buffett’s Criteria

Apple (AAPL)

Apple has unmatched brand loyalty and pricing power, making it one of Buffett’s largest holdings.

Microsoft (MSFT)

Microsoft dominates enterprise software with sticky products and generates massive free cash flow.

Coca-Cola (KO)

Coca-Cola’s global brand and distribution network make it the definition of a durable advantage.

Visa (V)

Visa benefits from a powerful network effect, collecting fees every time money moves around the world.

Berkshire Hathaway (BRK.B)

Buffett’s own company reflects all his principles in practice, with diversified holdings and elite management.