 His net worth is over 125 billion dollars. He's one of the most successful investors on this entire planet. In this video we'll go through clips of Warren Buffett and his rules for investment. Please smash the like button and let's get this valuable advice trending and subscribe to the channel for more business videos. Let's get right into this video. Warren Buffett is one of the most successful investors on the planet. The top five historic investments in Buffett's holding company, Berkshire Hathaway are Apple, Bank of America, Cudcolla, American Express and Kraft Heinz. Warren Buffett is a mastermind of finding stocks that are beating up rusty companies and turning them around and achieving massive returns on investment. In this video we will go through clips of investment advice from the man himself, Warren Buffett, and go through some of those rules of investing for beginner investors and also intermediate investors, but also ones that have been in the game for a long time. His principles and rules of investing are timeless and stand the test of time through the years relevant today in 2022. Let's get on with the first clip. No, if you're interested in financial matters, A, you've got to have something to work with. I mean, I was fortunate in that respect because my dad paid for my education. If he hadn't, I probably wouldn't have become educated if I had a paper myself. So I was able to save $10,000 by the time I was 21. And that was a huge, huge head start. If I hadn't been able to do that, and my first child came along when I was 22, so it's much easier to save it in those teenage years if you're lucky enough to be in a family where you don't have what your parents are taking care of your financial obligations. Every dollar then is worth making $10 or $20 later on. And so if you are interested in financial matters, getting a stake early is very useful and getting knowledge early is very useful. Learn about who's got good businesses in Carney and why they're good businesses and learn about the businesses that went out of business and why they went out of business and just keep accumulating knowledge. That's one of the beauties of the business that Charlie and I are in is that everything is cumulative. The stuff I learned when I was 20 is useful today, not necessarily the same way and not necessarily every day, but it's useful. So you're building a database in your mind that is going to pay off over time, but you have to have a little money to work with. So there's nothing like getting a few dollars ahead, stay away from credit cards, and you're going to have a lot of fun if your mind goes along that track as you get older. Warren Buffett is saying here that it's important to think long term in the stock market for investors to understand the impact of compounding on the stock market and being consistent with putting money into stocks. Start saving early because this money will compound over time. The best single thing you could have done on March 11, 1942, when I bought my first stock, was just buy an index fund and never look at a headline, never think about stocks anymore, just like it would do if you bought a farm, you just buy the farmer, let the tenant farmer run it for you. And I pointed out that if you'd put $10,000 in an index fund that reinvested dividends, and I paused for a moment to let the audience try and guess how much it amount to, and it would come to $51 million now. You have to take a look at a company's balance sheet alongside its value as a company, and to find stocks that are cheap and undervalued, that way you put yourself at a better position to achieve a positive return on investment in the long term. And it illustrates several points. One is, you don't necessarily get it right exactly right the first time. I mean, the car leasing business, you know, basically you were competing on the cost of money to finance cars. And it's very hard to delight a customer when you just give him the car and tell them to send you a monthly check for five years and you'll be back at that time. So his talents were being wasted basically in that business. But at the age of 40, with all of that experience behind him, he found the golden key and he took a very ordinary business and turned it into an absolutely extraordinary operation, just like Mrs. B. Rose Bumpkin did with furniture. And he didn't worry about whether the Federal Reserve was going to tighten or ease. He didn't worry about whether the stock market was up or down yesterday. He didn't worry about the things he couldn't change. But he did focus on the one thing he couldn't change. And that was the customer's experience. The other piece of advice here is essentially don't get firmer. If a stock price is running up, you don't necessarily take notice of that. You don't necessarily have to chase that. Focus on the fundamentals of the business and what it's worth based upon your own analysis. They're all smaller positions. Sometimes that's because they're smaller companies and we couldn't get that much money in. Sometimes it's because the price has moved up after we bought them. Sometimes it's because we may be selling the position down even. There's nothing magic. We like to put a lot of money in things that we feel strongly about. And that gets back to the diversification question. And we think diversification as practice generally makes very little sense for anyone that knows what they're doing. Diversification is a protection against ignorance. I mean, if you want to make sure that nothing bad happens to you relative to the market, you own everything. There's nothing wrong with that. I mean, that is a perfectly sound approach for somebody who does not feel they know how to analyze businesses. If you know how to analyze businesses and value businesses, it's crazy to own 50 stocks or 40 stocks or 30 stocks probably because there aren't that many wonderful businesses that are understandable to a single human being in all likelihood. And to have some super wonderful business and then put money in number 30 or 35 on your list of attractiveness and forego putting more money into number one just strikes Charlie and me as madness. And it's conventional practice and it may, you know, if all you have to achieve is average, it may preserve your job, but it's a confession in our view that you don't really understand the businesses that you own. You know, I base, I mean, on a personal portfolio basis, you know, I own one stock, but it's a business I know and it leaves me very comfortable. So, you know, do I need own 28 stocks in order to have proper diversification, you know, be nonsense. But if you had bought, if you'd been a pension fund and you put a million dollars into the S&P 500 at that time and reinvested it during my investing lifetime, that million would have turned into $5.3 billion you would have gotten for every dollar you put in. When you have a good manager and you're getting bad results, I mean, when you're getting bad results with a bad manager, you still have to examine the question of whether, you know, you can get better results if you've got a better manager. Usually you can't. You know, I've said in the past, you know, that when a management with a reputation for excellence encounters a business with a reputation for bad economics, it's the reputation of the business that remains intact. And I've proved that many times. There are businesses that are just plain tough. There may be too many competitors. Focused on businesses that try to delight the customer, this is because retaining customers creates recurring revenue and that helps enhance the value of the stock within the longer term. Warren Buffett is essentially saying, if you are unsure about what to invest in or you don't understand the fundamentals of business, then the best way to invest is through an index fund. However, if you're able to look at potential of businesses, its finances, its total addressable market, its customer attention, and the branding, then you're able to analyse the potential of a business and focus on investing in a small select few companies that can yield huge returns, if done the right way. Think about the competitors. Is the stock already in a crowded field with a large number of competitors? This sometimes can create problems. Thanks for watching this video. Please hit the like button and subscribe to the channel for more business videos. You can see another thought provoking video on screen now, which you can click on and view. Please comment down below what is your favourite quote of all time from Warren Buffett and I will pin the top comment with the most upvotes. Thanks for watching.