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Warren Edward Buffett, is an American investor, business tycoon, and philanthropist, who is the chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and has a net worth of US$88.9 billion as of December 2019, making him the fourth-wealthiest person in the world. – Source

He always said, “Never lose money!” The idea is simple: guard your hard-earned cash. One bad move can wipe out your savings, leaving you with nothing. Many people lose money by chasing quick gains—greed can backfire in the long run. It’s better to grow wealth steadily. After all, what’s the hurry?

Warren Buffett is basically the rock star of investing. His witty one-liners pop up in almost every finance book or article—“According to Warren Buffett…” is practically a catchphrase. That’s why it’s worth taking a closer look at his methods and quotes, which have inspired countless investors worldwide.

Warren Buffett is a genius—he actually reminds me of my grandfather, who had a similar talent for investing. There are tons of books online about Buffett’s life and his investing ideas if you want to dig deeper.

Unfortunately, many people misinterpret the concept of stocks and investing—just like how we twist other things, such as religious teachings.

Warren Buffett made his fortune by investing in great companies and holding onto them for a long time—that’s why he’s called the “Oracle of Omaha.” Trying to pick stocks like him is a huge gamble and is probably the biggest takeaway I got from reading countless investing books. If you still believe you can outsmart the market by cherry-picking stocks, you learn the hard way and end up back here ( this article i mean 😉 ) in a few years.

Are you saying we should not try to be Buffett ?

Stock picking today is tougher than ever.
In the past, legends like Warren Buffett found hidden gems by reading thick company manuals. Today, trading algorithms and real-time news alerts level the playing field—everyone knows everything, instantly. Big firms even invest billions in ultra-fast internet to react milliseconds ahead of others.

In India, holding on to once-famous names like HMT, BPL, or Videocon would’ve meant huge losses. Even a stock backed by Sachin Tendulkar turned out to be a scam. The market’s become unpredictable and ruthless.

Take Yes Bank: once the darling of investors, its stock crashed from ₹400 to ₹5 due to cooked-up balance sheets. Value investing tells us to trust the numbers—but when people like Rana Kapoor can manipulate them, even that’s risky.

Buffett can afford to lose crores—his steady cash flow from GEICO cushions the blow. But for most Indians, one bad stock bet can wipe out years of savings and shatter trust in investing.

Moral ? Don’t blindly buy and hold a single stock. Spread your risk. Stay alert.

Does Warren Buffet still believe in Value Investing, i.e buying stocks of company based on its real worth?

Warren Buffett has an incredible talent for spotting top-notch companies, but even he admits that finding those gems is like searching for a needle in a haystack. These days, he advises buying the entire haystack—in other words, invest in a broad, diversified market like an Index Fund.
It’s getting tougher for even Buffett to pick winners. When the pandemic hit in 2020, he sold all his airline stocks and took a $400+ million loss. That’s a huge amount, but it also shows no one, not even the “Oracle of Omaha,” is immune to market surprises.

It’s absolutely impossible to lose money in the Stock Market

-WARREN BUFFET

If you mention this advice in an Indian family gathering, brace yourself for long “gyan” sessions about how people—often the storytellers themselves—lost a fortune in the stock market. Many Indians have been burned so badly by stocks that even Burnol wouldn’t soothe their wounds!

What Buffet actually mean by saying it’s impossible to lose money in stocks?

Based on most of the Berkshire Hathaway shareholder letters I have gone through, what Warren was suggesting is “Eventually the market will always go up and a stock market is a place where money moves from a lot with no patience to the few with lots of patience.”

To sum up, the days of buying and holding individual stocks seem to be fading. The better path is to invest in an Index Fund—buy the entire market instead of spending hours trying to pinpoint the next big winner.

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