Warren Buffett: 5 concrete tips to become rich in 2025

Warren Buffet’s investment advice is as intriguing as it is reassuring. They speak of patience, common sense and discipline, even when the market is shaking. Here, we look back at the principles that built his legend, and how to apply them today.

Warren Buffet’s investment pillars

The heart of his method lies in the idea of “value”. He looks for simple, sustainable businesses, at a price below their estimated value. In this way, he stays within his circle of competence and refuses to rush. This methodical sobriety helps him to stay the course when the news gets out of hand.

Time is his most reliable ally. He relies on capitalization, visible cash flow and robust competitive advantages. What’s more, it favors profit retention when reinvested returns are high. Patience transforms small decisions into solid results.

The figures confirm this long-term approach. Berkshire Hathaway has compounded at nearly 19.8% per annum since 1965, according to annual reports. This performance does not rule out difficult periods, of course. Warren Buffet reminds us, however, that regularity wins out over restlessness.

For most investors, he recommends low-fee index funds. The idea is simple, but powerful for those who lack the time or inclination for analysis. As a result, broad exposure to the S&P 500 may suffice over the long term. Warren Buffet prefers this to complicated, emotional bets.

“Be fearful when others are greedy, and greedy when others are fearful.”

Budget and discipline according to Warren Buffet

Wealth begins with controlling your spending. We live better when we avoid high-interest debt, especially credit cards. What’s more, a simple budget that’s followed every month protects you from excesses. Warren Buffet praises this frugality because it frees up the ability to invest.

An emergency fund gives you real freedom of action. It allows you to wait for the right price without panic selling. A cash cushion also creates a margin of safety on a day-to-day basis. Warren Buffet insists on this safeguard, which reduces costly mistakes.

• Set a stable, automatic savings rate.
• Eliminate high-interest debt first.
• Build up an emergency fund for 3 to 6 months.
• Invest via low-cost index funds.
• Stay within your circle of competence.

Making rational decisions

Price is visible, value requires work. It compares future cash flows to be paid today, by demanding a discount. In this way, it creates a protective gap between estimated value and purchase price. Price is what you pay, value is what you get.

He says no to almost everything, then yes to very little. This rarity of “yes” comes from a written and rehearsed method. What’s more, he reads every day to refine his criteria and keep his distance from the noise. The Omaha investor turns slowness into an advantage.

The quality of management is as important as the numbers. He looks for integrity, frugality and rigorous capital allocation. On the other hand, he avoids managers guided by short-term euphoria. This consistency strengthens his confidence in the long term.

Who is the Warren Buffet method for?

This method is suitable for a wide range of profiles, but with some nuances. Beginners often benefit from using index ETFs. In this way, they can capture global growth without selecting individual stocks. More experienced investors can opt for value analysis.

In France, a PEA or a unit-linked life insurance policy can be used for this plan. Low fees and regular payments make all the difference. Consequently, taxation and discipline are just as important as the choice of securities. Warren Buffet puts simplicity before artifice.

Putting it into practice today

Start by clarifying your goals and horizon. List debts, fixed expenses and income, then automate savings. In addition, allocate a monthly portion to investment, say 10% to 20%. Consistency is more important than perfect timing.

Put together a list of understandable companies with robust balance sheets. Write down your buying thesis to keep a cool head. On the other hand, limit the number of positions you take as long as your follow-up remains artisanal. Warren Buffet takes things one step at a time.

Accept uncertainty and prepare for market lows. Adjust your sails without confusing volatility with permanent risk. And keep cash on hand to seize rare opportunities. Warren Buffet’s principles are still valid when the tide turns.

• Warren Buffet