The stock market is often manic-depressive. Some days it is euphoric; other days it is suicidal.

Buffett distinguishes between productive leverage (insurance premiums collected before paying claims) and dangerous leverage (bank loans, margin debt). Berkshire holds at least $20–30 billion in cash to survive any crisis. He famously avoided the 2008 financial crisis collapse because Berkshire had no short-term debt. Principle: You can only compound wealth if you are not forced to sell at the worst possible time.

Measure success through relationships, not just money. Key Investment Strategies Safety First: Prioritize not losing money.

Warren Buffett’s "10 Golden Principles" are a set of core strategies centered on capital preservation, deep business understanding, and long-term patience. While different authors summarize his decades of advice into various lists, the following 10 principles are the most widely cited core tenets of his philosophy: Rule No. 1: Never Lose Money : This is Buffett's primary rule for capital preservation. Rule No. 2 is simply to never forget Rule No. 1. Invest in What You Understand : Stay within your "circle of competence."

: The stock market is a device for transferring money from the impatient to the patient Think Long-Term : Buffett famously said his favorite holding period is "forever." Avoid the urge to trade frequently. Look for Economic Moats : Invest in businesses with durable competitive advantages

Buffett has often referred to the stock market as "Mr. Market," who provides opportunities to buy or sell stocks at irrational prices. He advises investors to take advantage of Mr. Market's mood swings.

Warren Buffett's Investment Strategy and Rules - Investing.com

“The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business.” — 2011 Interview with PBS