94-year-old stock market legend Warren Buffett, gives us his final 10 pieces of advice

Why does Warren Buffett’s Circle of Competence Principle Help Avoid Investment Traps?

Opinion / Liu Run Main Writer / Jing Jiu Editor / Huang Jing

**First published in May 2025_**_

Today, we are re-sharing a previously popular article titled “Warren Buffett, the 94-year-old Stock Guru, Gives Us His Final 10 Pieces of Advice,” hoping it will inspire you.

Below is the main text of this reprinted article.

Last year, Omaha, a small town in the American Midwest, was bustling with people from all over the world. Because, the annual Berkshire Hathaway Shareholders Meeting was underway again.

But this time, the atmosphere was a bit “different.”

Because, the main character of the meeting, the 94-year-old “Stock God” Warren Buffett, is about to retire.

(Images from the internet)

However, although the old man is passing the baton, he was very active this time.

Over four hours, he answered every question, discussing everything from trade wars, dollar risks, to artificial intelligence, and advice for young people… speaking nonstop, with a huge amount of information.

Someone who can, through nearly a century of storms and rains, grow a wealth snowball so large, must have a particularly valuable perspective on the world, life, and the underlying logic of money.

So today, I will do my best, drawing from the 50k-word live transcript and various in-depth reports, to distill for you 10 pieces of real, valuable “big truths” for ordinary people.

Where to start? Let’s begin with the recent, highly discussed topic: tariffs.

The fire of trade wars will burn everyone

When it comes to “trade wars” and “tariffs,” do you think they are just news about countries arm-wrestling, far from us ordinary folks?

Actually, not necessarily. The impact is coming soon.

For example, when shopping abroad, prices may start to look off. Because raw material costs are rising, domestic products are also increasing in price. Relatives and friends’ factories are complaining about fewer orders.

The big stick of tariffs ultimately hurts the wallets of ordinary people. It will eventually “burn” into our everyday lives through prices, jobs, and investment accounts.

So this time, Buffett also unusually criticized trade wars directly: Trade should not be used as a weapon.

Between countries, engaging in trade protectionism may seem like protecting certain industries at home. But doing so can very likely disrupt the highly efficient global supply chains that have been built over many years.

When the chain is disrupted, efficiency drops, costs rise, and ultimately, the consumers pay the price. Moreover, once trust is lost, future cooperation becomes difficult.

The visible smoke of trade war is the conflict itself. The invisible loss is the opportunity cost for each enterprise.

Besides the overt conflict of trade wars, there is a more hidden risk waiting for us: inflation.

The money in your hands may be quietly “diluted”

At the meeting, Buffett, who is usually full of confidence in the US, expressed rare concern: I am worried about America’s fiscal problems.

What is Buffett afraid of?

He might be worried that the US government has been reckless with spending, earning less than it spends, and accumulating a huge debt. In the end, it can only print money to settle debts, which affects the credibility and value of the dollar.

If an economy’s money supply exceeds what it can produce over the long term, the money becomes less “valuable.”

Printing too much money is like adding water to soup; the flavor naturally thins, and the purchasing power of money declines.

This is not unique to any country but a basic supply and demand relationship.

You might think, this is America’s issue. Does it matter to us?

It definitely does. After all, the dollar remains the main international currency. Its fluctuations can ripple out like stones thrown into a lake, affecting trade, commodity prices, and the global economy, eventually impacting us too.

The ship of the global economy, when hit by waves, no passenger is safe.

Therefore, Buffett’s concern about the dollar may inspire us: Everyone should have the awareness to manage their wealth well and ensure its preservation and appreciation.

After all, the value of wealth is ultimately reflected in how much stuff it can buy, not just the zeros on paper. Saving money is not just about numbers; it’s about what it can exchange for—“rice, oil, salt, and soy sauce.”

Don’t touch things you don’t understand, no matter how lively they seem

This world changes too fast. Today’s AI large models, tomorrow’s Web3, new opportunities emerge endlessly, making people itchy to try.

But, the more uncertain the environment, the more we need to set a “warning line” in our minds.

Simply put:

Stick to your circle of competence, don’t blindly tinker.

For example, AI. AI is so hot, many want to hear what the stock guru thinks.

The answer? Buffett is very straightforward: I won’t invest or develop everything around AI… If I do use AI in business, it’s up to the more knowledgeable Vice Chairman Ajit Jain to decide.

I myself, don’t give orders blindly.

Pretending to understand when you don’t is the most expensive “tuition” in life, bar none.

Even Buffett maintains a deep respect for things he doesn’t understand, and doesn’t jump in blindly. It’s not “old-fashioned rejection of new things,” but a matter of not investing until he’s studied thoroughly.

The world is vast, opportunities are many, but only a few are enough for you.

The principle is clear. But just guarding isn’t enough. After all, we need to develop and seize opportunities.

Patience is not an excuse for hesitation

When people think of Buffett, the first word that probably comes to mind is: Patience.

But patience is not indecision.

At the meeting, Buffett told a story. In 1966, he received a call from a stranger woman offering to sell her shares in her business, asking for 6 million dollars. The business’s assets alone were worth 2 million, and it earned 2 million pre-tax annually.

A business earning 2 million a year, sold for 6 million. It was a “bargain sale.”

Buffett’s first reaction was: Is this a good deal? Could there be a scam?

So, he quickly discussed with Charlie. They were very nervous, trying to analyze the numbers, maybe read psychology books to understand why she was selling.

When information is insufficient and the situation unclear, don’t make quick decisions; take time to understand.

But the next day, a crucial call provided more information about the woman, dispelling Buffett’s doubts. He realized: this opportunity must be seized. So he acted decisively.

In front of opportunity, the biggest enemy is often not risk, but your own hesitation.

Sometimes, when an opportunity appears, you might only have 5 seconds to decide. That requires you to understand your field well enough to avoid missing out.

Buffett said, when a good opportunity arises, you shouldn’t be impatient. For idle talk that can’t be realized, you shouldn’t be patient either. Your patience should be reserved for those rare opportunities.

Patience is a weapon against ambiguity, not an excuse for clarity.

Getting rich slowly is often the smartest choice

Many people yearn for overnight riches.

But Buffett doesn’t think so. At the meeting, he said: You only need to be rich once.

This means: don’t take excessive risks.

Getting rich slowly is far better than “overnight riches” followed by “overnight loss.”

Because, if you chase “fast,” it often means taking “death” risks.

Opportunities that can make you “get rich overnight” usually come with extremely high uncertainty. Win, and you might soar; lose once, and there may be no way back.

So, for ordinary people, the safest approach might be: Time + compound interest.

Find things that become more valuable over time. For example, entering the pension industry, which will only grow bigger each day. Or creating content, which over time can give you increasing influence in a field.

Let time be your friend. Like a snowball, it starts slow but gets faster as it rolls.

Buffett has always adhered to this “slow” wisdom. He’d rather miss many seemingly lively opportunities than let his snowball melt or break along the way.

But, the starting point of wealth for most people is work. Working 8 hours a day, or even longer. So, how to choose your work?

Find what you love to do

Buffett says, do what you love, and don’t worry too much about the initial salary.

Working only for money is just “renting” your time; working out of passion is “investing” your life.

Buffett himself is the best example. At 94, he still spends every day happily researching investments, with wealth that could last several lifetimes.

So, it’s not that money isn’t important, but: Don’t just chase money; listen more to your heart.

What makes time fly when you do it? What makes doing this the greatest reward for yourself?

Find it, and invest in it.

Even if you start earning less, because of passion, you’ll go faster and farther.

Money is the result, not the goal; passion is the unbeatable competitive edge.

But what if you can’t find your passion at the start?

No problem. At this point, maybe you should find people you want to become like, and make friends with them.

Get close to those you want to become

There’s an old Chinese saying, “Near vermilion, red; near ink, black.”

Buffett also advises that young people should be around wise people, learn together.

If you hang out with positive, upward-looking people, you won’t be lazy; if you exchange ideas with sharp-minded people, your cognition will improve quietly; if you befriend honest and kind people, you’ll value integrity more.

The kind of person you become largely depends on who you spend the most time with. The average level of your five closest friends often determines your own level.

Choosing friends and partners is, to some extent, choosing your future self.

Curiosity is the brain’s preservative

Nowadays, there’s no shortage of information. Swipe your phone, and all kinds of opinions and news flood in.

But many people seem to know more, yet feel more confused and anxious.

This may not be because they know too little, but because they think too shallowly, ask too few questions.

Buffett, at 94, still thinks quickly. How? During the meeting, when asked by a 13-year-old, he said: Curiosity.

The moment you stop being curious about the world is the first day your cognition begins to age.

Having curiosity alone isn’t enough; you need to act, turn curiosity into knowledge.

How? There are roughly three ways: Read, ask, think independently.

He especially admires his old partner Munger. He says, Charlie, when he wants to understand something, cuts to the core and thinks deeply.

Reading is feeding the brain; thinking is digesting the food into nutrients.

So, perhaps you can:

1) Read more things that make you slow down and think. Skip the jokes that make you laugh and forget; focus on those “hard bones” that require brainpower.

2) Develop the habit of asking “why” until you get to the bottom. When you see a conclusion, don’t rush to agree; ask “why?”, “is it true?”, “are there counterexamples?”

3) Beware of “answers” that are fed directly to you. The process of independent thinking may be tiring, but only what you verify yourself can truly become part of your cognition.

Your cognitive boundary determines the size of your world, and also the ceiling of your wealth.

Happiness comes from mindset

At the meeting, someone asked Buffett how he views the lows of life.

Buffett was very honest: Bad things will happen; focus more on the good.

The old man’s life has surely had worries—stock market crashes, investment mistakes, doubts from others… but he knows how to adjust his “spotlight” to focus on what he already has.

For example, he happily said at the meeting that, at 94, he can still enjoy his favorite cola anytime, which is a wonderful thing.

Or, many people complain about not being born at the right time. But Buffett would say, look at history. When would you want to be born? In 1500, 1000, 500 years ago, or now?

Compared to any period in history, we are very lucky to live today. We have electricity, cars, the freedom to learn and the opportunity to start a business, even if it’s hard. This in itself is a huge blessing.

Many people are unhappy not because they have too little, but because they want too much. The result? The more they compare, the more anxious they become; the more they look, the more they feel lost.

Your happiness may depend on where you focus your attention.

Eyes on the gaps, and you see only regrets; eyes on what you have, and you feel abundance.

Names are your most valuable asset

Buffett’s life practice tells us that your most precious asset may not be the numbers in your bank account, but your “name”—that is, trust and reputation.

Why?

If money is lost, as long as you are still alive, capable, and have opportunities, you can earn it back. Trust, once lost, is very hard to rebuild.

As Buffett said long ago: It takes 20 years to build a reputation, but only 5 minutes to ruin it.

Why does Berkshire Hathaway always get opportunities others can’t? Much of it is because of market trust. The “golden signboard” built over decades is one of their most core, irreplaceable competitive advantages.

And the successor, Abel, emphasized this at the meeting. Berkshire Hathaway will always prioritize the company’s reputation.

Many people think that being smart and capable guarantees success. But in business and life, the ones who go far and earn respect are often not the most calculating, but those who uphold integrity and honesty.

Ability determines how fast you can go; character determines how far you can go.

Final words

From Buffett’s first stock purchase at age 11 in 1942, to today, 83 years later.

In these 83 years, he has experienced post-WWII recovery, witnessed the internet bubble, endured financial crises, and seen the wave of digitalization and AI revolution…

A 94-year-old’s advice, in 2026, still touches hearts.

Perhaps it’s because he has grasped the most fundamental aspects of human nature. Greed, fear. Trust, betrayal. Ability, character… These are themes that transcend any era. Even in 2026, they remain relevant.

Because, while times change, human nature does not; technology evolves, but the underlying logic remains; tools change, but the essence of value creation stays the same.

And our learning from Buffett’s wisdom is not to become the next Buffett, but to become a better version of ourselves.

Let’s encourage each other.

(Images from the internet)

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