Buffett doesn’t invest in trends—he invests in trust. Learn why thinking in decades, not quarters, is the secret to building real wealth.
“Could I hold this company for 50 years?”
That’s the kind of question Warren Buffett asks before making an investment. Most people look for stocks that might go up this year. Buffett looks for companies he can trust enough to own forever—not just for a quick gain.
Long-term investing isn’t about time alone. It’s about choosing well and waiting well. It’s a mindset shift from chasing returns to partnering with great businesses.
If You Spend at Starbucks or Costco, Why Not Own the Business?
If you grab coffee at Starbucks or bulk groceries at Costco every month, you’re already investing—in their revenue. But have you ever thought about becoming a shareholder?
Buffett has praised Costco for its customer loyalty and efficient operations. And Starbucks, with its steady dividend growth, is a go-to for many retail investors seeking dependable income.
Ask yourself:
“Which brands will still be thriving 10 years from now—and do I own them?”
That’s often the clearest long-term signal you’ll get.
Buffett’s Quiet $6 Billion Bet on Japan
In 2020, Buffett made headlines by investing nearly $6 billion in Japan’s five largest trading houses—Mitsubishi, Mitsui, Itochu, Marubeni, and Sumitomo.
Here’s why:
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Undervalued with strong fundamentals. (P/B ratios between 0.6–0.8 at the time)
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Diversified global operations in essential sectors like energy, metals, logistics, and food
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Long-term alignment without control—Buffett publicly stated he would not interfere with management decisions
This investment wasn’t flashy. But it was classic Buffett: cash-rich, steady, and built for the long haul.
3 Things You Need for Real Long-Term Investing
1. Can You Trust the People in Charge?
Even a great product can crumble under poor leadership.
A Morningstar study confirms that capital allocation decisions by executives are among the most critical factors in long-term returns【Morningstar, 2023】.
Companies like Amazon, Tesla, and Apple have benefitted from strong, visionary leadership. That matters.
2. Is the Business a Cash Machine?
Revenue alone doesn’t guarantee durability.
What you want is free cash flow—the money left after operations and capital expenditures.
For instance, Apple has posted consistently strong free cash flow for over a decade, rewarding shareholders with buybacks and dividends【Apple Q4 Report, 2023】.
3. Can You Wait Without Watching Every Dip?
The S&P 500 has historically returned around 10% annually, yet most retail investors underperform due to emotional trading.
A Dalbar report in 2022 showed that average investor returns are consistently below market benchmarks【Dalbar, 2022】.
If you find yourself checking Robinhood hourly or trading based on Reddit hype, you’re not investing—you’re reacting.
Real investors ask: “Would I be okay holding this company for 10+ years even if the price stayed flat?”
“Only Buy What You’d Never Want to Sell”
That’s Buffett’s golden rule.
If you're constantly thinking about when to sell, you're not investing long-term—you’re just trading.
Buffett never said he’d sell his Japanese holdings. In fact, he increased his stake and stated:
“We plan to be long-term partners with Japan.”
In a world of fast cycles and constant noise, patience is the advantage most people overlook.
Don’t try to outguess the market. Outlast it.
This post was inspired by Warren Buffett’s remarks at the 2025 Berkshire Hathaway Shareholders Meeting.
His message about choosing companies you can hold for a lifetime reminded us that real investing is not about timing the market—it’s about building trust and staying the course.
In the next post,
we’ll explore another of Buffett’s timeless insights:
“The market is always uncertain—so don’t predict, prepare.”
Through the lens of Market Uncertainty and the Power of Being Ready,
we’ll break down how smart investors navigate fear-driven headlines, avoid knee-jerk reactions,
and position themselves to spot real opportunities—when no one else is paying attention.
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