3 Lessons From Investing Legend Warren Buffett to Carry Into 2026

January 6, 2026

Warren Buffett is no longer CEO of Berkshire Hathaway, but his legacy will live on.

Warren Buffett is no longer the CEO of Berkshire Hathaway, but that doesn’t mean the investing lessons Buffett taught us over his six decades at the helm of the large conglomerate won’t live on for generations.

Buffett has captained Berkshire to market-crushing returns since he took the reins of the company back in the 1960s. The Oracle of Omaha transformed the company from a struggling textile manufacturer into one of the largest conglomerates in the world, with dominant businesses in insurance, energy, mortgages, and, of course, Berkshire’s legendary $300 billion-plus stock portfolio.

Here are three lessons from Buffett that investors can carry into 2026.

Warren Buffett.

Image source: The Motley Fool.

1. Stick to your fundamentals and trust yourself

One of the things I find most impressive about Buffett is his ability to apply his investing philosophy to businesses across all sectors, whether new or already established. In recent years, the market has piled into artificial intelligence (AI) stocks, at times overlooking valuation. Some may have assumed that Buffett, well into his 90s, would have no interest in the group.

However, Berkshire owns Apple, Amazon, and now Alphabet. But while investing in these companies, Buffett and his team have not forgotten about valuation. Instead, they have purchased large tech conglomerates with AI exposure at prices they deem fair. Earlier in 2025, Alphabet was viewed as the value stock in the “Magnificent Seven.”

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This demonstrates how Buffett invested in AI while sticking to his core investing principles of purchasing wonderful companies at fair prices. Buffett didn’t let the shiny new toys distract him from his traditional investment approach, and investors should do the same.

2. Be disciplined in your purchases

Second, Buffett hasn’t been a significant buyer of stocks in recent years, despite the bull market, seemingly because he sees issues arising in the longer term. Instead, Buffett has built a massive hoard of cash, giving Berkshire a fortress-like balance sheet. This demonstrates extreme discipline, showing that Buffett and his team are rowing against the current based on their long-term beliefs.

This is another great lesson for investors: Don’t follow the crowd if you’ve done the work and have high conviction.

3. Hang in there over market ups and downs

Finally, Buffett has demonstrated the effectiveness of hard work and patience in investing over a long time horizon. Buffett has even acknowledged that he has made many mistakes throughout his career. However, because Buffett has always been willing to conduct in-depth research on stocks and not get frustrated when his thesis doesn’t play out in the short term, he has consistently outperformed the market since Berkshire’s inception.

How investors can follow Buffett in the new year

Investors should strive to follow this approach, especially in a world that’s full of temptations from meme stocks and cryptocurrencies. If you aren’t willing to do the work and be patient, that’s perfectly OK. After all, not everyone has the time. However, in this case, Buffett recommends avoiding individual stock picking and instead purchasing low-cost index funds.

 

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