Warren Buffett has compounded Berkshire Hathaway’s book value at roughly 20% annually for over five decades. That track record was not built on market timing or complex derivatives. It was built on principles rooted in business analysis, patience, and discipline that any investor can adapt regardless of portfolio size.

Buffett’s Investment Philosophy

Buffett’s approach begins with a foundational idea: stocks are not lottery tickets. They represent ownership stakes in real businesses. Every investment decision starts by evaluating the underlying company rather than predicting where the stock price will move next.

This philosophy was shaped by Benjamin Graham, who introduced the concept of intrinsic value: every business has a calculable…