#TradFi交易分享挑战

‌The Five Core Secrets to Buffett's Success in Investing in U.S. Stocks‌！

‌1. Adhere to the "Circle of Competence" Principle: Only Invest in Companies You Truly Understand‌

Buffett never chases hot trends or invests in industries he doesn't understand. Throughout his life, he has heavily invested in Coca-Cola, American Express, and Apple because these companies have simple business models, clear cash flows, and strong brand moats. He once said, “‌The key to investing is not how much you know, but how well you understand what you don’t know.‌” At the 2025 shareholders’ meeting, he emphasized again that even with the surge of AI, he still does not invest in chip design companies because he “cannot assess their long-term technological iteration success rate.”

‌2. Seek "Economic Moats": A Company’s Competitive Advantage is the Foundation of Long-Term Returns‌

Buffett compares a company to a castle, and the moat is the ditch protecting it — which could be brand loyalty (Coca-Cola), cost advantage (GEICO insurance), network effects (Apple ecosystem), or regulatory franchises (railroads). He doesn’t buy “cheap companies,” but rather “expensive but irreplaceable companies.” In his 2024 letter to shareholders, he pointed out: “‌A company with a wide moat, even with mediocre management, can continue to create value.‌”

‌3. Buy with a "Margin of Safety": Price Determines Investment Success‌

The essence of value investing is buying an asset for 50 cents on the dollar. Buffett follows Benjamin Graham’s “margin of safety” principle — the purchase price must be well below intrinsic value to buffer against judgment errors and market fluctuations. During the 2008 financial crisis, he bought Goldman Sachs preferred shares at $100 per share, with a 10% dividend and warrants, exemplifying a typical margin of safety operation.

‌4. Hold Long-Term: Time is a Friend of Excellent Companies‌

Buffett’s average holding period is “forever.” He has held Coca-Cola for over 35 years, Apple for over 10 years, and Japan’s five major trading companies for 5 years with plans to hold them for another 50 years. He often says, “‌If you aren’t willing to hold a stock for ten years, don’t hold it for ten minutes.‌” The magic of compound interest only manifests through long-term holding — Berkshire Hathaway’s annualized return from 1965 to 2024 is 19.9%, far surpassing the S&P 500’s 10.4%, achieved not through timing but through the power of time’s compounding.

‌5. Maintain a Large Cash Reserve, Waiting for the "Sweet Spot"‌

Buffett never fully invests all his cash. In 2025, Berkshire’s cash reserves reached a record high of $347.7 billion. He compares the market to the “best hitting zone” of baseball player Ted Williams — only swing when the ball is in your most skilled zone. In May 2026, he still refuses to acquire any overvalued tech companies, preferring to “wait five years rather than buy at the wrong time.”$TSM $JNJ