– With Timeless Wisdom from Warren Buffett –
Wrote：2025.8 by Global Economist
1. Introduction
For wealthy individuals, investing is not merely about making money—it is about preserving, growing, and transferring wealth across generations. Their mindset and behavior differ greatly from short-term traders. Warren Buffett, one of the world’s most successful investors, has shared principles that perfectly illustrate this long-term approach.
2. The Wealthy Mindset
(1) A Long-Term Perspective
Wealthy individuals think in decades, not months. They ask: “Will this asset still be valuable in 20 years?”
“Someone is sitting in the shade today because someone planted a tree a long time ago.” – Warren Buffett
(2) Focus on Intrinsic Value
They invest in value, not in price. Strong balance sheets, competitive moats, and durable demand guide their choices.
“Price is what you pay. Value is what you get.” – Warren Buffett
(3) Risk Management and Capital Preservation
Protecting wealth takes priority over chasing high returns. Losses destroy compounding.
“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.” – Warren Buffett
(4) Discipline over Emotion
They avoid following the crowd and stick to principles even in volatile markets.
“Be fearful when others are greedy, and greedy when others are fearful.” – Warren Buffett
(5) Knowledge as the Greatest Asset
The wealthy constantly invest in learning—through books, networks, and research—before committing capital.
“The more you learn, the more you earn.” – Warren Buffett
3. Investment Behavior of the Wealthy
- Concentrated yet Diversified – focus on core businesses while managing unexpected risks.
- Cash-Flow Assets – dividend stocks, real estate, infrastructure generating stable income.
- Long-Term Holding – wealth is grown by owning businesses, not flipping assets.
- Cash Reserves – dry powder for downturn opportunities.
- Social Responsibility – aligning wealth with ESG principles to maintain legitimacy.
4. Conclusion
The wealthy view money as a tool that should work for them, not the other way around. Guided by principles of long-term value, disciplined risk management, and continuous learning, they embody Buffett’s timeless wisdom. Their approach ensures that wealth is preserved, multiplied, and passed on with purpose.
