How to invest like Warren Buffet

Who is Warren Buffett?

Warren Buffett is the CEO of Berkshire Hathaway and one of the most successful investors in history. Born in 1930 in Omaha, Nebraska, Buffett showed an early fascination with business and investing. He bought his first stock at age 11 and filed his first tax return at age 13. Over the decades, he turned that early ambition into one of the most admired investing careers of all time.

Buffett built Berkshire Hathaway’s success on a clear and simple philosophy: buy quality businesses at fair prices and hold them for the long term. He avoids speculation, sticks to what he understands and waits patiently for the right opportunities.

Today, Berkshire Hathaway manages a portfolio worth over $350 billion, with major positions in mega-cap companies. Under Buffett’s leadership, Berkshire stock has delivered a compounded annual gain of around 19% since 1965, compared to roughly 10% for the S&P 500.

Buffett is known for his plain-spoken wisdom, famously saying, “The stock market is designed to transfer money from the active to the patient.” That patient, focused style of investing is what makes his approach both effective and instructive – even for investors just getting started.

Warren Buffett’s investment philosophy

Buffett’s personal story is compelling, but it’s his philosophy, which he applies through Berkshire, that truly drives his results. At its core, his approach is grounded in a few timeless principles – ideas that he’s shared in his shareholder letters, have stayed the same for decades, and continue to outperform broader markets.

1. Value investing

At the core of Buffett’s philosophy is value investing – buying stocks that trade for less than their intrinsic value. Intrinsic value is the real worth of a company based on its fundamentals, not its share price. This includes earnings, assets, future cash flows, and growth potential. Buffett looks for opportunities where a company is undervalued due to short-term noise, even though its long-term outlook remains strong. He believes the market often misprices quality – and that’s where the real opportunity lies.

2. Buying quality businesses

Buffett doesn’t chase trends. He invests in companies with durable competitive advantages, often called economic moats. These are businesses with strong brands, loyal customers and a track record of steady earnings. Examples include long-term Berkshire holdings like Coca-Cola, Apple and Johnson & Johnson. He also sticks to his ‘circle of competence’ – investing only in businesses he understands deeply, which reduces unnecessary risk.

3. Margin of safety

This refers to buying an investment below its intrinsic value, providing a cushion against market uncertainty or mistakes in valuation. It allows investors to protect themselves from downside risk while still capturing upside over time. Buffett always aims to buy with room for error.

4. Long-term investment horizon

Buffett invests for the long haul. Berkshire often holds positions for decades, allowing compound interest to do the heavy lifting. This reduces trading fees, minimizes taxes and avoids emotional reactions to market swings. The focus is not on short-term price movements, but on long-term business value.

Key principles for investing like Buffett

Warren Buffett’s investment success comes from staying grounded in a few clear principles. These ideas don’t rely on market timing or complicated financial models. While most investors can’t copy Berkshire Hathaway’s exact moves, the underlying logic is widely applicable.

1. Invest for the long term

Buffett famously said, “our favorite holding period is forever”. This principle is about choosing businesses you trust and giving them time to grow. Rather than reacting to daily price swings, focus on long-term value creation.

Berkshire first bought shares of Coca-Cola in 1988. More than three decades later, it remains one of its core holdings. The company’s global brand, consistent dividends and pricing power make it a textbook example of a long-term winner.

2. Understand the business you’re investing in

Warren Buffett only buys what he understands. He encourages investors to stay within their “circle of competence” – industries and companies they can evaluate with clarity. He has famously avoided tech companies he didn’t understand for years, only investing in Apple after he grasped the strength of its ecosystem and customer loyalty. “Never invest in a business you can’t understand”, he advises.

3. Diversification through quality, not quantity

Buffett doesn’t believe in holding dozens of mediocre stocks. “Wide diversification is only required when investors don’t understand what they’re doing”, he says. Instead, Berkshire invests heavily in a few great companies it trusts. Its top holdings represent a large percentage of the portfolio – showing Buffett’s preference for conviction over spreading thin.

Using Crypto.com Whale Baskets to invest like Buffett

Crypto.com’s Whale Baskets lets users mirror the publicly disclosed stock trades of well-known investors and institutions. For example, Buffett’s Whale Basket is based on Berkshire Hathaway’s reported holdings. These baskets allow everyday investors to follow the investment moves of prominent market figures and firms in a simplified way.

• Structured exposure: Whale Baskets provide curated exposure to famous investors’ holdings, ranked by performance over different time horizons (3 months, 6 months, 1 year). Investors can choose baskets that align with their own outlook.
• Regular rebalancing: You’ll get an alert if the ‘whale’ made a new trade, to help you stay aligned with market performance and basket goals.
• Passive income potential: While not all Whale Basket stocks pay dividends, qualified customers can enroll in our securities lending program to potentially generate additional income from their holdings.

Stocks Whale Baskets live inside the Crypto.com Stocks App, giving you a seamless way to invest, monitor, and adjust your portfolio from anywhere. They’re especially helpful for those who don’t want to manage each investment selection manually.

Steps to get started with Whale Baskets

Ready to apply Buffett’s logic using a tool designed for simplicity and performance? Here's how:

1. Sign up on the Crypto.com App
2. Open a Crypto.com Stocks account
3. Deposit funds via bank transfer, card, Apple Pay or Google Pay
4. Open the app and tap on the ‘Trade’ tab
5. Select ‘Whale Baskets’ from the available options
6. Browse basket categories based on growth, sector, or performance
7. Choose a pre-built basket or build your own based on value and conviction
8. Review your selection, confirm, and start investing with confidence

Ready to get started?

1. Sign up on Crypto.com
2. Open a Crypto.com Stocks account
3. Deposit via bank transfer, card, Apple Pay, or Google Pay
4. Navigate to the ‘Trade’ tab and explore Whale Baskets

Foris Capital US LLC (FCUL) is a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a Member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). For further information about FCUL, please visit FINRA BrokerCheck.  

FCUL is a subsidiary of Crypto.com. FCUL is a separate entity from Crypto.com, Foris DAX, Inc., and other affiliated Foris companies. FCUL does not engage in the sale, transfer or custody of crypto currencies or digital assets. Crypto.com is a separate entity from FCUL and does not engage in the securities business. Customer balances and crypto holdings held and transacted at Crypto.com and other entities outside of FCUL are not covered by SIPC insurance and are separate from securities transactions and holdings at FCUL.

All investments involve risk, and not all risks are suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. The past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit or protect against loss in a down market. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing.

​​This is informational content sponsored by Crypto.com and should not be considered as investment advice.