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Phil Osagie
Updated Mar 26, 2026
He started out with $9,800 in savings after college. He’s now worth a staggering $150.2 billion, making him the 10th richest person in the world.
That’s Warren Buffett.
His secret? Strategy that isn’t built on hype — it’s built on patience, discipline and a handful of fundamental principles that have stood the test of time.
The best part is these aren't just reserved for billionaires or Wall Street insiders. They're practical rules anyone can follow, whether you're investing your first $1,000 or managing a six-figure portfolio.
Here’s how you can apply Buffett’s timeless advice to your own finances.
Fundrise Flagship Fund
Buy real estate through Fundrise's $1 billion private fund
1. Let compounding work its magic
Buffett’s secret weapon isn’t timing the market — it’s time in the market.
“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever,” Buffett famously wrote in a letter to shareholders in Berkshire Hathaway’s 1988 annual report.
One of the most powerful aspects of compound interest is that it works quietly in the background, requiring minimal effort from the investor. It allows your investments to grow on top of themselves over and over again — like a snowball gaining momentum.
The trick is to start early, automate your savings and think long-term.
At just 11, Buffett bought his first stock — three shares of Cities Service at $38 each. When he sold at $40, the price soon soared, teaching him an early lesson: real wealth doesn’t come from quick trades, but from patience and the power of compounding over time.
The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns — a popular app that automatically invests your spare change.
Signing up for Acorns takes just minutes: link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.
With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.
You can also let Rocket Money work behind the scenes to keep your finances on track.
With the app's premium Net Worth feature, you can link all your accounts — banking, investments, retirement, property, vehicles, and even manually added items like jewelry — and it shows your assets versus liabilities in real time, no spreadsheets required.
With free tools like subscription tracking, bill reminders, credit scores, and budgeting basics, plus premium features such as automated savings and customizable dashboards, Rocket Money makes it easier to see the big financial picture, stay on top of your investments, and keep you focused on building your wealth.
2. Focus on long-term value — not short-term noise
“Be fearful when others are greedy, and greedy when others are fearful,” Buffett wrote to shareholders in Berkshire Hathaway's 1986 annual report.
When markets tumble, fear takes over, prompting many investors to sell. Buffett, however, takes the opposite approach. He buys high-quality assets at discounted prices during times of fear, confident that their actual value will appreciate over the long run.
You can adopt a similar strategy by diversifying your investments across various assets and resisting panic-driven decisions during market fluctuations.
Real estate is especially effective as a hedge, offering stability and protection against both volatility and inflation, making it a smart addition to a well-rounded portfolio.
But, while real estate might be a solid investment, the asset class typically has a high barrier to entry. Fortunately, a growing number of platforms out there now make it easier to invest in real estate today.
For instance, the Fundrise Flagship Fund¹ is a $1 billion private real estate fund that lets you invest in an expertly crafted strategy without needing hundreds of thousands of dollars. You don’t need to be an accredited investor, and you can get started with as little as $10.
With 4,700+ single-family homes and 2,500+ residential units owned by the Fundrise Flagship Fund, you get exposure to institutional-style scale and diversification.
Industrial
215 Interchange
Las Vegas, NV
Build-for-rent
Pine Ridge
Fountain Inn, SC
Build-for-rent
Omnia
Richmond Hill, GA
These are a few examples of properties powering the Fundrise Flagship Fund. For a full list of the Fundrise Flagship Fund's portfolio properties see the Flagship Fund website.
After you place your first investment, the Fundrise Flagship Fund will work to find and add new assets to your portfolio over time and send you transparent updates along the way.
It only takes a few minutes to sign up now and become a real estate investor today.
Fundrise Flagship Fund
Buy real estate through Fundrise's $1 billion private fund
If diversifying into multifamily rentals appeals to you, you could consider investing with Lightstone DIRECT, a new investing platform from the Lightstone Group, one of the largest private real estate companies in the country with over 25,000 multifamily units in its portfolio.
Featured
Residential
Columbus, OH
Featured
Industrial
Tobyhanna, PA
Featured
Residential
Beverly Hills, MI
These are a few examples of past properties or acquisitions from Lightstone. Explore more investment opportunities when you register with Lightstone DIRECT.
Since they eliminate intermediaries — brokers and crowdfunding middlemen — accredited investors with a minimum investment of $100,000 can gain direct access to institutional-quality multifamily opportunities. This streamlined model can help reduce fees while enhancing transparency and control.
And with Lightstone DIRECT, you invest in single-asset multifamily deals alongside Lightstone — a true partner — as Lightstone puts at least 20% of its own capital into every offering. All of Lightstone’s investment opportunities undergo a rigorous, multi-stage review before being approved by Lightstone’s Principals, including Founder David Lichtenstein.
How it works is simple: Just sign up with your email, and you can schedule a call with a capital formation expert to assess your investment opportunities. From here, all you have to do is verify your details to begin investing.
Founded in 1986, Lightstone has a proven track record of delivering strong risk-adjusted returns across market cycles with a 27.5% historical net IRR and 2.49x historical net equity multiple on realized investments since 2004. All told, Lightstone has $12 billion in assets under management — including in industrial and commercial real estate.
As such, even if multifamily rentals don’t appeal to you, Lightstone could still serve you well as an investment vehicle for other real estate verticals.
Get started today with Lightstone DIRECT and invest alongside experienced professionals with skin in the game.
3. Don’t overpay for investment fees
Warren Buffett is a staunch critic of high investment fees — and for good reason. As he famously said, “A great many people think they’re investing when they’re just speculating. And if you’re paying high fees to do it, you’re compounding the mistake.”
Many investors unknowingly sacrifice a significant portion of their returns to high management fees.
His approach is to avoid unnecessary fees and high advisor commissions wherever possible. They are hidden costs that often go unnoticed, but they compound just like returns.
Traditional advisors typically charge fees between 0.5% to 2% AUM, or $1,000 to $3,000 plus for comprehensive financial plans.
The key is finding the right advisor based on your specific needs.
Once your portfolio reaches a certain size, your investment strategy becomes more about being tax-efficient and ensuring your asset allocation can withstand a volatile market.
By hiring a fiduciary advisor, you’re gaining a strategist who looks at your financial buckets — from real estate and investment accounts to your cash reserve and 401(k) — as a whole. It’s the same institutional approach the 1% use to protect their purchasing power and ensure their wealth actually lasts for generations.
Platforms like Advisor.com can help match you with fiduciary advisors from their network of professionals, whether you're looking for guidance from established firms like Vanguard and Fisher Investments or boutique local advisors if you prefer in-person meetings.
Just answer a few questions about yourself and your goals, like tax optimization, estate planning, or retirement timing, and the platform will match you with a vetted fiduciary.
To see if you're a match, you can schedule a free consultation with no obligation to hire.
4. Keep a cash cushion
Even as a billionaire investor, Buffett doesn’t take liquidity for granted. Holding cash — or cash-like assets — gives him the ability to act quickly when opportunities arise and shields him from needing to sell investments at a loss during emergencies. It's a smart, defensive move that ensures stability.
“We always maintain at least $20 billion — and usually far more — in cash equivalents,” Buffett wrote in a letter to shareholders in Berkshire Hathaway's 2014 annual report.
You might not have billions like Warren Buffett, but you can still apply the same principle by growing your savings efficiently and building a substantial cash cushion with a high-yield savings or cash account.
A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.
A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%².
That's ten times the national deposit savings rate, according to the FDIC's March report³.
Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase⁴ with no expiration date or balance limit, meaning your APY could be as high as 4.30%.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.
When interest rates are in flux, high-yield savings accounts can feel like a moving target. You might earn a competitive APY one month, only to have your bank quietly lower it the next. While flexible, HYSA returns aren't guaranteed — a risk that's magnified when the Fed holds rates steady or signals future shifts.
With a Certificate of Deposit (CD), you lock in a rate upfront, so your earnings stay fixed for a set term, even if market rates slip.
For those seeking predictable, reliable growth, a platform like CD Valet can help you find higher-yield options that work for you, whether you’re saving for something soon or building a cushion for the long haul.
CD Valet tracks over 40,000 verified rates from FDIC-insured banks and NCUA-insured credit unions nationwide. Unlike other websites, they show every publicly available rate, ensuring you have a comprehensive view of the market.
To help you save smarter, CD Valet provides free, specialized tools.
- Earnings calculator: See exactly how much interest you’ll accrue by the end of your term. Adjust different rates and terms to see how much you can earn with a 12-month vs. a 24-month CD.
- CD rates map by state: See real-time offers of the best CD rates across the country. Many institutions allow you to open an online account, so you can take advantage of a great CD rate without being located in that state.
Plus, their CD rates are updated continuously so you can shop, compare and open CDs with ease .
5. Buy low-cost S&P 500 Index Funds — consistently
Buffett has long championed the S&P 500 index fund as a smart, low-cost way for most people to invest. It provides broad exposure to top U.S. companies, ensuring diversification while minimizing risk.
“I think it makes the most sense practically all of the time. Keep buying it through thick and thin, and especially through thin,” Buffett stated.
The results back him up. Over the past 50 years, the S&P 500 Index has demonstrated a strong track record of performance, with recent annual returns of 26.29% in 2023, 25.02% in 2024, and a steadier 14.47% so far in 2025.
Even professional investors often struggle to beat this index over time.
You can follow Buffett’s advice by regularly investing in the S&P 500 Index Fund through a self-directed trading account with SoFi Invest.
There are no commissions, no account minimums, and you can even receive up to $1,000 in free stock when you open and fund a new account. It’s a simple, low-cost way to build your investment foundation — with minimal effort.
SoFi Invest also keeps you informed with real-time market news, sector performance and key trading data — giving you the tools to invest confidently.
You’re doing it yourself, but like Buffett, you’re never investing blindly.
6. Live within your means
Warren Buffett still lives in the same Omaha home he purchased back in 1958 and drives a modest car. Can you believe it?
His frugal lifestyle isn’t being stingy — it’s about discipline. He doesn’t buy luxury cars or mansions just because he can. By keeping his costs low, he’s able to leave more of his money invested and continue compounding over time.
You can adopt this same mindset by finding creative ways to cut costs in your own life. Little things often add up to big results over time.
One area where many people can save significantly is home and car insurance. Regularly shopping around and comparing rates between insurance providers can make a big difference in your budget.
OfficialHomeInsurance.com can take the hassle out of shopping for home insurance. In just under two minutes, you can explore competitive rates from top insurance providers, all in one place — and potentially save an average of $482 per month.
With OfficialHomeInsurance.com, you can easily find the coverage you need at a price that can fit your budget.
But saving on home insurance is just the start. Car insurance is another major monthly expense — and rates have been climbing. Between 2020 and 2024, motor vehicle insurance costs rose by an astonishing 54%, according to data from the U.S. Bureau of Labor Statistics..
OfficialCarInsurance.com lets you compare quotes from trusted brands — including Progressive, Allstate and GEICO — to make sure you're getting the best deal. The free tool takes into account your location, vehicle details and driving history to find you the lowest rate possible.
The process is 100% free and won’t affect your credit score. In just a few clicks, you could pay as little as $29 a month.
7. Avoid high-interest debt
Warren Buffett once said, “If I owed any money at 18%, the first thing I'd do with any money I had would be to pay it off.” That’s not just advice — it’s a strategy.
Buffett understands that high-interest debt, like credit card balances, can quietly undo years of smart investing. When interest is compounding against you, even the best investments struggle to keep up.
If you're carrying debt with steep rates, follow Buffett's lead: make paying it off your top priority.
If you have considerable equity in your home, you may consider consolidating your high-interest debt into a low-interest HELOC or home equity loan.
Having access to your home equity could help to cover unexpected expenses, pay substantial debt, fund a major purchase like a home renovation or supplement income from your retirement nest egg.
Rates on HELOCs are typically lower than APRs on credit cards and personal loans, making it an appealing option for homeowners with substantial equity
Unlock great low rates in minutes with Figure. You can fill out an application that's 100% online – no need to wait for an in-person appraisal.
If you owe a substantial amount, you may also want to see if you qualify for a debt relief program to help clear a significant portion of your debt.
With Freedom Debt Relief, you can speak with a certified debt relief consultant for free, who can show you how much you can save by partnering with them.
If you're eligible, they can negotiate settlements with your creditors until all of your enrolled debt is resolved.
8. Only invest in what you understand
Buffett has a simple golden rule: “Never invest in a business you cannot understand.”
If he can’t easily explain how a company makes money or what gives it a competitive advantage, he stays away.
You can take a similar path by removing the guesswork from your decisions. If you're not sure where your strengths lie as an investor, that’s where platforms like Moby can come in.
Moby provides expert research and stock recommendations backed by former hedge fund analysts, making it easier to identify strong, long-term investment opportunities.
Over the past four years, Moby’s nearly 400 stock picks have outperformed the S&P 500 by an average of almost 12%. They also offer a 30-day money-back guarantee, so you can try it risk-free.
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 5 minutes.
And in true Buffett fashion, Moby empowers you to invest in what you understand — so you can build wealth the smart, steady way.
More smart moves to level up your portfolio
Mogul
Real estate investing
Institutional-quality real estate for a fraction of the cost.
Arrived
Real estate investing
Buy shares of homes and vacation rentals for as little as $100.
Masterworks
Alternative investing
Invest in paintings by best-selling artists like Banksy and Basquiat.
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Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund’s prospectus. Read them carefully before investing. This marketing was vetted by the Moneywise team and sponsored by the Fundrise Flagship Fund.
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The Base Annual Percentage Yield (APY) is 3.30%, as of 01/30/26, and is subject to change. If you are eligible for the overall boosted rate of 4.05% offered in connection with this promo, your boosted rate is also subject to change if the base rate decreases during the three-month promotional period. The Cash Account is offered by Wealthfront Brokerage LLC, Member FINRA/SIPC. Wealthfront is not a bank. The Base APY is representative, subject to change, and requires no minimum. Wealthfront Brokerage sweeps cash balances to Program Banks, where it earns the variable base APY and is eligible for FDIC insurance. Instant withdrawals may be limited by your receiving firm and other factors. Investment advisory services provided by Wealthfront Advisers LLC, an SEC-registered investment adviser. Securities investments: not bank deposits, bank-guaranteed or FDIC-insured, and may lose value.
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Based on the national average savings accounts interest rate of 0.39% as posted on FDIC.gov, as of March 16, 2026. Wealthfront doesn't charge wire fees for transfers to title and escrow companies or your accounts at other institutions, but the receiving entity or institution may charge a fee. For more wire info, visit wealthfront.com/transfer-agreement.
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The Direct Deposit Plus Investing Program ("DDI Program") from Wealthfront Advisers LLC and Wealthfront Brokerage LLC (collectively, "Wealthfront") provides eligible clients a 0.25% annual percentage yield ("APY") increase above the current base APY (paid by Program Banks) on total eligible Cash Account balances. Wealthfront may change or end the program at any time and determines eligibility at its discretion. See Terms and Conditions at wealthfront.com/promo-terms.
Phil Osagie
Conversion Copywriter
Phil is a writer at Moneywise, bringing a strong background in public relations, financial communications and copywriting. Educated in Cambridge, U.K., he has created content for several blue-chip companies, combining clarity with strategic insight.
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