Buffett's patient formula beat the market

For decades, Warren Buffett outperformed the U.S. stock market by buying good businesses at low prices and waiting patiently. He retired as Berkshire Hathaway's chairman on Friday.

Value investing faces periodic skepticism

Buffett's bargain-hunting approach comes under fire when Wall Street gets excited about hot trends like dot-com stocks or gold. He famously dismissed gold as having no practical use.

Buffett became a national icon

Unlike other investing celebrities, Buffett cracked into the national consciousness from Omaha, Nebraska. Over 40,000 people attended his annual shareholder meetings to hear him and his partner Charlie Munger speak.

His first lesson was never about money

When professor Todd Finkle brought students to meet Buffett, he never started with investing advice. Instead, Buffett's opening topic was always the same: choosing who to marry.

“The most important thing you'll do in your life is to pick who to marry.”

He built trust through radical honesty

After a scandal at Salomon Brothers, Buffett testified in Congress and told employees to ask themselves if their actions could appear on the front page of their local newspaper without shame.

His advice echoes across the internet

Buffett's famous saying, "be fearful when others are greedy, and greedy when others are fearful," is so well-known that even Reddit traders joke about doing the opposite.

“Be fearful when others are greedy, and greedy when others are fearful.”

His core investing rules are simple

Buffett's two-part rule is straightforward: Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1. He also taught that tough times reveal who has taken too much risk.

“Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.”

Life advice matters more than stock tips

Bob Miles, who has taught a college course on Buffett for 16 years, sees him as a guide for living successfully, not just for investing. Buffett emphasized that the people you associate with shape your life's direction.

“I look at him more and more as kind of a guide toward how to live a successful life.”

Finding his replacement will be hard

Other famous investors exist, but few have Buffett's long track record, wit, and personality combined. His departure raises questions about who will champion value investing when traders chase meme stocks and cryptocurrencies.