Warren Buffett says this book changed his life forever. Here's the real key to long-term gains

Yahoo

19-07-2025

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
Warren Buffett is one of the most renowned investors of our time. So, it's easy to forget that he was once a beginner too.
Buffett claims he bought his first stock at age 11, then spent eight years focusing on stock price movements instead of studying the underlying companies.
Don't miss
Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast)
You don't have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here's how
'I had the whole wrong idea,' Buffett said in a 2022 interview with journalist Charlie Rose. 'I thought the important thing was to predict what a stock would do and predict the stock market.' But when Buffett was 19 or 20 years old, he read a book that would change his perspective forever: 'The Intelligent Investor' by Benjamin Graham.
Instead of charting stocks or "stock picking," Graham advocated for the valuation of underlying companies. He theorized that stock prices eventually follow a company's financial performance. This simple philosophy shifted Buffett's view on investing forever.
'I realized that I was doing it exactly the wrong way,' Buffett said. 'I rejiggered my mind when I read the book.'
This philosophy has worked for Buffett, but not everyone has time to read 500 pages of financial analysis a day. Here are three ways to level up your investing depending on how much time you have.
Do your research
Buffett once famously said that he reads 500 pages a day. While this might not be what every investor needs to do, you should think about spending more time with news and analysis from reputable sources.
Buffett's approach favors analysis based on understanding the companies you're investing in, their industry, and the forces impacting their potential for growth. However, technical analysis — focusing on the numbers — also has a place for the modern investor.
When you learn to balance both data and investment philosophy, you'll be well on your way to becoming a savvy market player.
In short: where you get your stock market info from matters.
With Moby, you can get advice from expert former hedge fund analysts, with a 30-day money-back guarantee. In four years, across almost 400 stock picks, Moby's recommendations have beaten the S&P 500 by almost 12% on average.
Moby's team spends hundreds of hours sifting through financial news and data to provide you with stock and crypto reports delivered straight to you. Their research keeps you up-to-the-minute on market shifts and can help you reduce the guesswork behind choosing stocks and ETFs.
Plus, their reports are easy to understand for beginners, so you can become a smarter investor in just five minutes.
Trust the experts
Aside from doing your own research, it can pay to invest in professional advice.
Even Buffett surrounded himself with knowledgeable advisors at Berkshire Hathaway. Everyone has areas of expertise, but no one knows everything.
With this in mind, an expert advisor can help you raise your game. As Buffett once said, 'Pick out associates whose behavior is better than yours and you'll drift in that direction.'
'In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you.'
If you're unsure which path to take amid today's market uncertainty, it might be a good time to connect with a financial advisor through Advisor.com.
This online platform connects you with vetted financial advisors best suited to help you develop a plan for your new wealth.
Just answer a few quick questions about yourself and your finances and the platform will match you with an experienced financial professional. You can view their profile, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
You can view advisor profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
Read more: Rich, young Americans are ditching the stormy stock market —
A 'set it and forget it' approach
While keen investors may be willing to spend the time to learn the markets, many investors can be better off with a passive approach.
"In my view, for most people, the best thing to do is own the S&P 500 index fund,' Buffett once said.
"The trick is not to pick the right company. The trick is to essentially buy all the big companies through the S&P 500 and to do it consistently and to do it in a very, very low-cost way.'
A passive approach might not produce spectacular wins, but it can be a low-risk option for the investor who is simply looking to build a reliable nest egg for retirement.
What to read next
How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement
5 simple ways to grow rich with US real estate — without the headaches of being a landlord. Start now with as little as $10
This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk
Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.