📈 Why I Follow Buffett's Principles — And Why They Work
The Paradox of Simplicity
Warren Buffett's investing principles are simple, public, and endlessly repeated:
Buy businesses you understand.
Be patient.
Ignore short-term noise.
Hold for the long run.
Yet few follow them consistently. Ironically, that's why they work. Buffett's edge isn't secret knowledge — it's discipline. He resists fear and FOMO, while most investors chase trends or panic-sell.
My Own Journey
For most of my life, my passions were history and political science. Finance came later. And that's okay. Buffett himself didn't experience massive wealth until his 50s — the same stage of life where my own portfolio began to compound meaningfully.
I'll admit, sometimes I get teary-eyed when I think about it. For years I chased what everyone else was doing, trying to outsmart the experts and the market. Then I read The Snowball: Warren Buffett and the Business of Life. It was the first book that explained not just what Buffett did, but why. His snowball metaphor made sense: wealth isn't built by brilliance or timing, but by patience, discipline, and compounding over decades. I stopped pretending I could beat the system and instead leaned into my natural instinct — to hoard, to wait, and to buy when fear ruled. That shift changed everything.
I've built my portfolio by living those principles, not just quoting them. Here are the moments that defined my approach:
Pandemic 2020: When the world panicked, I was cash-rich and bought aggressively. This was a once-in-a-generation opportunity, just as 2001 and 2008 had been. Patience paid off — today I'm enjoying splits and rebounds.
Stock Splits: Every split was a chance to accumulate more. Tesla was a prime example.
March 2025 Panic: Another wave of fear, another chance to buy. I swooped in again.
Tech Dips (2022–2023): Amazon and Alphabet briefly traded near $100. I bought heavily, knowing their fundamentals were strong. Those positions have more than doubled.
Looking Ahead: With more splits this fall (Tesla, Netflix, etc.), I'm prepared to act again.
The Myth of "Saving Cash for the Apocalypse"
One argument I hear from panic sellers is: "I need to keep cash ready for the apocalypse."
Germany's history shows us that in true crises, cash becomes meaningless. After WWI, hyperinflation was so extreme that people wheelbarrowed cash down the street just to buy bread. And before WWII, rationing and shortages meant money couldn't buy what didn't exist. In real apocalypses, survival — not savings — becomes the priority.
The point? Cash only matters in functioning economies. In real-world investing, hoarding cash out of fear means missing opportunities. Crises that look like "apocalypses" to investors are actually temporary downturns. That's when disciplined buyers step in and build wealth.
Why This Works
Crises are rare: True "apocalypses" don't happen often. That's why patience is essential.
Execution beats knowledge: Everyone knows markets recover. Few have the courage to buy when fear dominates.
Positive-sum game: Investing isn't poker. When businesses grow, all shareholders benefit. My edge comes from acting rationally when it feels irrational to do so.
The Dilemma
If everyone followed Buffett's principles, opportunities would shrink. But here's the truth: most won't. Human psychology ensures there will always be panic sellers and trend chasers. That's why I can freely share my philosophy without losing my edge.
Closing Thought
I started late, stumbled often, and only found my discipline when the world panicked in 2020. But as Buffett's Snowball taught me, compounding doesn't care when you begin — only that you keep rolling. That's my edge: patience when others chase, conviction when others doubt, and the discipline to let the snowball grow.
