2 tips on how to invest in Warren Buffett

Warren Buffett has been investing in actions for longer than I have been alive. Given that fact, he has seen several new technology cycles reaching the stock market, with the hurry resulting from buying related companies to try to benefit from advances. With ai as an issue that will continue to boost markets in 2025, here are two tips that I am taking seriously on this issue.

Invest in what I understand

One of Buffett's famous appointments is “Never invest in a business that I can't understand”. That is a reason why some of its long -term holdings include tastes of Coca-cola and American Express. Both companies operate relatively simple business models. As a result, you can easily understand any strategy change. From there, you can take into account your thoughts about what it could mean for the company's finances.

This applies to me when it comes to ia. I get the premise of ai and the role that some companies play with the hardware. However, there are some actions related to the ai ​​in which I really do not see where the driving force for the use of technology comes from. Some software providers that are quite specialists in providing help for training models also overlook me.

On that basis, I am trying to resist the impulse to buy shares that increase depending on the speculation of ai simply due to the fear of getting lost (Fomo).

Focus on value, not exaggerate

Buffet once said that “The stock market is designed to transfer money from the patient asset.” Since the sector is developing at such a fast pace, there may be the temptation to buy and sell every day to try to capture profitable changes.

Instead, I want to try to imitate your advice being patient. I will focus on assigning my money to established companies that should be long -term IA winners. For example, I have actions in Tesla (Nasdaq: Tsla). The business published results earlier this week (January 29), which shows that the impulse of robotaxis and other autonomous driving technology is really accumulating rhythm. He hopes to try robotaxis in Austin, Texas, already in June. More cities must be followed by the end of the year.

I think the company is well prepared to advance in this area, since it already has a solid base with the existing design and production of electric vehicles. In addition, he has already been involved in ai for some time, which means that it will be unlikely to be a flashing in the bread. During the past year, growth actions increased by 103%.

A risk is that management must maintain a cost lid. It is fine to invest a lot in R&D, but they must ensure that this does not compromise the profitability in the process too much.

When trying to apply Buffett's thoughts, I feel you can make a better investor. Especially with these new trends, I can try to maintain my profitable portfolio!