A recent list of Warren Buffett’s best quotes includes his primary view of investing. It represents sound advice that is as good as that provided by any seasoned investor: “The first rule of an investment is don’t lose (money). And the second rule of an investment is don’t forget the first rule. And that’s all the rules there are.”
A $100 investment in his flagship company, Berkshire Hathaway Inc. (NYSE: BRK-B | BRK-B Price Prediction), which he took over in 1965, was worth $5.5 million at the end of last year. Some of this growth is due to financial companies that he favors and has acquired. This includes insurance company GEICO and several reinsurance companies. However, the largest private corporation he owns is the massive railroad Burlington Northern Santa Fe Company.
Two investments demonstrate the diversification of Buffett’s holdings. One is Apple Inc. (NASDAQ: AAPL) (some of which he sold off recently), and the other is the Chinese EV company BYD. He purchased many of his BYD shares in 2008 when the company was still an obscure carmaker. That investment of $230 million is worth $2.4 billion. BYD sells more EVs than Tesla does.
Some of his investments are in America’s oldest companies. These are also some of America’s valuable and visible brands. Coca-Cola Co. (NYSE: KO) was launched in 1886. Berkshire Hathaway was a significant company before Buffett took over in 1965. Kroger Inc. (NYSE: KR) was founded in 1883. American Express Co. (NYSE: AXP) got its start in 1850. All were part of Buffett’s holdings in the first quarter of 2025. He has held some of these for most of this century. These represent part of his investment rules and philosophies.
Often among the best investments are companies that have been industry giants and successful since before Buffett was born in 1930. He and his staff can examine earnings, business models, and both good and bad decisions. He can look at CEOs, both present and past, and he can sift through balance sheets. Buffett has observed the strategies of their competitors and has seen how these companies navigate business cycles, both good and bad.
To be clear, Buffett likes to invest in companies that are relatively new and have been the winners in the new world of tech. This includes, among others, Amazon and Apple. As he watched Apple stock tumble, he sold off some of those holdings.
Buffett has lost money on some investments, but not enough to dent his overall spectacular returns.
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