#分享美股交易赢英伟达股票

Warren Buffett's Secrets to Investing in U.S. Stocks

The market in the crypto world is sluggish, and many retail investors have turned to the booming U.S. stock market. As a beginner, paying tuition is the least you can do. You can look at Warren Buffett’s investment experience in U.S. stocks; even if you don’t learn the essence of the Oracle of Omaha, grasping some superficial knowledge should be enough for us to “conquer the battlefield”!

1. The Three Pillars of Investment Philosophy

Ability Circle Principle: Only invest in companies you truly understand. Buffett once said, “If you don’t understand it, don’t touch it.” Early on, he avoided tech stocks not because he rejected innovation, but because he couldn’t judge their long-term business models. It wasn’t until Apple became a “consumer electronics brand” rather than a “tech company” that he included it within his circle of competence.

Margin of Safety: The purchase price must be significantly below the intrinsic value of the company, leaving room for error. He emphasizes, “The first rule of investing is don’t lose money, and the second rule is never forget the first.”

Long-termism: Holding period determines investment success. His famous saying, “If you aren’t willing to hold a stock for ten years, don’t hold it for ten minutes,” reveals his compound interest mindset—time is a friend to excellent companies and an enemy to mediocre ones.

2. The Four Core Criteria for Stock Selection

Durable Moats: Companies with hard-to-copy competitive advantages, such as brand, cost leadership, network effects, or franchise rights. Coca-Cola has built an intangible barrier through global brand recognition, while American Express relies on the bilateral network effect of its credit card ecosystem to form a monopoly-like environment.

High ROE and Stable Cash Flow: Consistently high return on equity (above 15%) over many years, with abundant free cash flow, not relying on external financing to sustain operations. Apple’s ROE exceeded 40% in 2025, and Coca-Cola has been paying dividends for nearly 40 years—both are models of stable cash flow.

Excellent Management: Management must be honest, rational, and prioritize shareholder interests rather than blindly pursue growth. The founding families of See’s Candies and Nebraska Furniture Mart under Berkshire Hathaway exemplify this “owner’s spirit.”

Simple and Understandable Business Models: Clear, transparent business logic that doesn’t rely on complex technology, policy changes, or short-term trends. Consumer goods, insurance, railroads—these industries may not be glamorous but are favored for their predictability.

3. Wisdom in Contrarian Market Sentiment Operations

“Be fearful when others are greedy, and be greedy when others are fearful”: This is his precise summary of market psychology. During the 2008 financial crisis, he invested $8 billion in preferred stocks of Goldman Sachs and General Electric, earning 10% annual interest—a classic contrarian move.

Cash is King: In 2025, Berkshire’s cash reserves exceeded $325 billion—not out of conservatism, but to wait for the “right moment to fire.” He never predicts the market but is always prepared to act when others panic.

Reject the Noise: He doesn’t read analyst reports, listen to financial commentary, or chase hot topics. He states, “If you need a calculator or computer to figure it out, then don’t buy it.”

4. Ultimate Advice for Ordinary Investors

If you are not a professional investor: Buy low-cost S&P 500 index funds (such as Vanguard’s VOO). This is Buffett’s “legacy investment plan” for ordinary people.

If you are willing to research companies:

Start with brands you use daily (like your soda or credit card);

Review their 10-year financial statements, focusing on ROE, free cash flow, and debt ratio;

Buy when the stock price drops more than 20%, and hold for at least 5 years;

Never sell due to short-term fluctuations unless the company’s fundamentals deteriorate.

Buffett says, “Investing is not a game of intelligence, but a game of character.”

Patience, discipline, and rationality—more important than high IQ.

So, family members, have you gained anything? Have you learned enough? 😀