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MoneyWeek article- how to invest like Warren Buffett

Journalist: Marc Shoffman, Freelance

ended 16. May 2025

Hi,

I am writing a piece for MoneyWeek on how to invest like Warren Buffett. I am keen for tips on what investors can learn from the Sage of Omaha to build their own mini Berkshire Hathaway style portfolio?

Kind regards

Marc

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In 2025’s uncertain climate (tariffs, inflation, geopolitical risks), Warren Buffett’s principles offer a timeless guide. Buffett’s key virtues are patience and discipline. KPIs include focusing on quality companies with moats; buying at fair prices with a below sector average P/E ratio; holding long-term; stick to what sectors you know and understand; seek strong management with metrics like a high ROE and low debt; buying during periods of fear when the markets dip; concentrate on 5-7 stocks with 10-20% cash for opportunities; reinvest dividends; ignore all the noise, and stay up to date.
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It’s simple.

You buy quality US companies that are trading at their 200wma after some sort of general market event.

It’s a simple concept where you front run the eventual capital flow of quality drivers of the market.
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Warren Buffett's investment philosophy was based on humility—a rare thing in the investment world! He would only invest in businesses and industries he felt he truly understood. This philosophy meant he sometimes missed out on emerging trends but also protected him from overhyped fads that didn’t deliver long-term value. Once invested, he typically held positions for the long term, focusing on companies with clear, proven business models and durable competitive advantages.
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Anyone can invest like Warren Buffett, as long as you have the following: time, cash and a modest lifestyle.

If you want to achieve spectacular returns, time is the single biggest factor. The effect of reinvesting growth and income over years and decades - called compounding - is a mathematical wonder.

But it's not easy. To stay invested and keep investing year in, year out, you need to have a good cash buffer, so you don't have to dip into your investments.

And it helps to live modestly. Mr Buffett famously lived in the same house, drove the same car and had the same cheap McDonald's breakfast every day for a very long time.