Warren Buffett, also known as the Oracle of Omaha, isn’t just some famous guy—he represents a whole approach to life.
At the ripe age of 94, his net worth is firm at on over $130 billion, and he didn’t get there by running after the latest fads. Instead, he nailed the game of investing in a way that’s clever yet straightforward. For the young investors in India who are surfing the stock market’s highs and lows, Buffett’s style of thinking is what you need. Forget all the complex graphs and formulae. Forget all the attention-grabbing reels. What you want is straight-shooting discipline, crystal-clear understanding, and just a dab of staying power.
Here is a starters checklist for young wannabe Warren Buffetts. Please note I have used some company names to better articulate the core of Buffett’s teachings. These are not recommendations.
1. Make It Simple, Like Your Daily Cup of Chai
Buffett keeps it simple. “You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130” he once said. In India, we get hit with a lot of noise —like crypto pushes, wild IPO rushes, and WhatsApp stock tips. What’s Buffett’s move? He sticks to strong companies that are available at good prices. And no, he does not do cryptos or IPOs. Neither does he rely on WhatsApp!
See it as if you’re choosing the right chai place. No need for a ton of flavours—just robust tea, fresh cream, and a steady seller does the trick. When you’re investing, look for businesses that make sense to you: think Colgate with its toothpaste or Maruti rolling out autos. When a company seems too complex just pass on it. Keeping it straightforward often comes out on top.
2. Skip the Herd – Even During a Diwali Rush
Ever caught yourself racing to those big sales snagging items you never use later? It happens in the stock market too. Take those hot, profitless EV startups—folks can’t wait to dive in. But not Buffett. He hangs back.
We witnessed India get swept up in crypto mania back in 2021. Many boasted making cash tenfold. Then it all went south. Buffett sticks to a different playbook: steer clear of crowd-following. He’s the type to pick up something unexciting like perhaps HDFC Bank for an attractive price over some flashy newcomer. If your cousin tells you about that “surefire win,” stop for a second. Think. Is this a Buffett kind of opportunity or is it a gamble?
3. Go for the Long-Term Play – Imagine Test Match, Not Just a T20 Match
Warren Buffett is a fan of sticking with investments for the long haul. He bought some Coca-Cola stock back in ’88 and hasn’t let go of it yet. What’s the reason? Rock-solid companies tend to grow as time marches on. Here in India, there’s big hype around lightning-fast trades—think options and intraday trading among others. The stats from NSE reveal a whopping 90% of investors end up losing cash in these speedy deals.
Buffett’s got a whole other game plan. He’d advise treating shares like your test match squad: select solid companies and stay with them for the long run, not just for a quick game. Look at bluechips like ICICI Bank or TCS—these steady heavyweights pay off if you’ve got the patience. Speak to your investment advisor to see what the best way for you could be to start. May be kick things off with a modest SIP and let the clock work its magic, or a better option your advisor could tell you about.
4. Grab Deals During Market Chaos – Think Clearance Sale
Buffett quipped, “Be fearful when other are greedy, and greedy when others are fearful.” When the market plunges, he goes shopping. Back in 2008, as Wall Street was in flames, he grabbed awesome deals. We’ve seen the same with Nifty lows—take the 2020 pandemic nosedive, for example. Folks in panic sold their shares. The clever ones grabbed good deals.
When the Sensex next nosedives, don’t just stand there. Look for solid firms—think Asian Paints and Infosys—whose prices may take a hit for no good reason. That’s your shot to act like Buffett. You’re not trying to time the market; you’re just hunting for quality at a discount when the crowd scatters.
5. Understand Your Expertise – Stick to Your Path
Buffett names his method the “circle of competence.” He sticks to investing in companies which he understands well. Tech wasn’t his place to be, so he steered clear for ages. In India, everyone’s buzzing about startups – you’ve heard of Zomato, Paytm, and Swiggy, right? They seem cool, but do the ins and outs of their profit-making make sense to you?
Focus on familiar territory. Say you’re from a farming background; you might want to peek at agriculture shares. Tech whizzes might want to delve into a company like Infosys. Buffett’s advice boils down to this: don’t try to hit every ball—aim for the ones you’re sure you can smack.
6. Tune Out the Din—No Matter How Deafening
Buffett doesn’t look at the stock prices every day. He isn’t bothered by TV experts who shout “Buy!” or “Sell!” Many are glued to business shows and Twitter conversation. Each low seems catastrophic; each high feels like we’ve hit the big time.
Buffet would suggest ignoring it all. Pay attention to the company owning the stock. Does Titan continue to trade in jewels? Does Hindustan Unilever keep selling detergents? If they do, take it easy. Noise remains just that—noise. Your role involves thinking, not just responding.
7. Embrace Learning – Act as a Student, Not a Wager Maker
Buffett tackles a hefty 500 pages every week. He digs into everything: books, papers, the lot. His words, “The more you learn the more you earn,” should spark something fierce in India’s youth. Check it out, we’ve got all the sweet free stuff—company info on the BSE, cool podcasts, and you can even peek at Buffett’s past letters for that matter.
Kick things off easy. Each week, peek at a new company. Give it some time and you’ll get good at picking the winners just like Buffett does. Remember, you are not rolling the dice – you’re hitting the books.
Your Buffett Adventure Kicks Off Now
You don’t have to be a billionaire to think like Buffett. Instead, you need his way of thinking. Initiate an SIP or just one dependable stock. Ignore all the excitement. Go for what’s uncomplicated, what’s sturdy, and yeah even what’s dull. We’re living in times where things happen at breakneck speed—whether it’s watching quick videos on Instagram or getting food from Swiggy. Meanwhile, Buffett sticks to a method that’s slow and sure—and hey, it’s still effective.
Buffett transformed a humble $100 into a fortune of billions. You’ve got the chance to grow your initial funds as well. So, what are you planning to do next? Is there an Indian company out there that fits the Buffett mold?
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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