In the second half of 2025, we published a series of articles examining key issues for cross-border investors.
In those articles, you read about:
- Why embracing market volatility is one of the best ways to achieve long-term investment success
- The importance of staying invested rather than continually trying to time the market
- How a long-term investment strategy can help protect you from the effects of inflation or a recession
- The importance of diversity and investing across all market sectors and regions.
In this article, you’ll find some further guidance about how to manage your investment strategy. This takes the form of simple words of wisdom from one of the most famous and successful investors in history, Warren Buffett, who finally retired at the age of 95 at the end of 2025.
Warren Buffett is one of the most successful investors in history
With his long-term colleague and business partner, Charlie Munger, Warren Buffett turned Berkshire Hathaway from a struggling textile company into a major business conglomerate, which, according to Google, is now worth well over 1 trillion US dollars.
Over a 30-year period from 1965, during which he was in charge, Investopedia confirms that his investment prowess and business expertise compounded the company’s share price by almost 20% a year. For comparison, that was close to double that of the S&P 500 over the same period.
Fortunately for investors, Buffett has always been willing to share his wisdom, primarily in his eagerly awaited annual letters to Berkshire Hathaway shareholders.
Discover seven of Warren Buffett’s best-known words of investment wisdom and how you can apply them to help grow your own wealth.
1. “Risk comes from not knowing what you’re doing”
As a cross-border investor, perhaps with assets in both the UK and Australia, it’s important to have a clear plan for your long-term investments.
You wouldn’t think of starting any important project without a detailed plan, and what could be more important than securing your long-term financial security for you and your loved ones?
The alternative, as Warren Buffett suggests, is exposing yourself to the risk of failure by lacking a plan and reacting to events in a haphazard way.
By constantly reacting to news and making short-term adjustments to your portfolio, rather than trusting your plan, you will jeopardise your future wealth.
2. “The stock market is a device for transferring money from the impatient to the patient”
This Buffett quote highlights the fact that stock markets reward long-term investors who keep a level head, rather than those who are constantly chasing short-term gains.
The result is that market gains will be transferred to the patient investor, who will benefit from the effect of compounded growth over time.
It also highlights that short-term thinking and continual meddling can be detrimental to your wealth. As Buffett himself put it, “The trick is, when there is nothing to do, do nothing.”
3. “Be fearful when others are greedy and greedy when others are fearful”
When the stock market is booming and investor enthusiasm, driven by exuberance and greed, runs high, it is often a sign that shares are overvalued. This can increase the likelihood of a market correction.
At times like this, Buffett suggests that the wise investor should be “fearful,” and avoid making hasty decisions.
But when other investors are panicking because stock values are falling, perhaps precipitously, it may be an opportune time to be “greedy” and look to buy undervalued assets.
4. “Price is what you pay. Value is what you get”
Here, Buffett is urging you to focus on the underlying value of an investment rather than the possibility of short-term gains.
It’s always tempting to look for quick profits, especially if it involves following an investment tip or advertised opportunity. By doing this instead of focusing on your long-term strategy, you run the risk of incurring losses.
In this regard, Buffett has very much practised what he has preached, with substantial long-term holdings in companies such as Apple, American Express, and Walmart.
5. “Don’t watch the markets closely”
As well as having a long-term investment outlook, it’s important not to obsess about short-term fund performance.
The very nature of markets means that values can fluctuate. Businesses can be affected by external events, as well as their own performance, which in turn influences share prices and the value of your own portfolio.
Overreacting to short-term movements can mean you end up making investment decisions that aren’t right for you and your goals.
You should also try to tune out the noise coming from the media and market analysts. This commentary is often driven by short-term perception, rather than long-term performance.
6. “In the business world, the rear-view mirror is always clearer than the windshield”
“Hindsight bias” can happen when you believe historical events were more predictable than they actually turned out to be.
It can lead to overconfidence and result in you taking on more risk than is appropriate.
With this quote, Buffett is pointing out that events are rarely easy to predict, which is why a long-term outlook is important.
As it says in all investment risk warnings, including the one below this article, “past performance is not a reliable indicator of future performance”.
7. “Our favourite holding period is forever”
The importance of staying invested and focusing on your long-term strategy underlies many of Warren Buffett’s words of advice.
He always stressed that buying funds or shares with the intention of never letting them go is a sensible approach.
Not only will this help you benefit from compounding through regular dividends, but it can also reduce your investment costs by avoiding excessive trading fees and charges.
Get in touch
Expert advice and regular reviews of your investment strategy can help ensure that you are best positioned to achieve your long-term goals.
At bdhSterling, we specialise in helping clients navigate the complexities of international financial planning. Whether you’re managing assets in multiple countries or planning a move abroad, our expert advisers can help you build a resilient, long-term investment strategy.
Get in touch to find out how we can help you.
Please note
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
This article is for information only, it does not take into account your personal objectives, financial situation, or needs.
Please do not solely rely on anything you have read in this article and ensure that you conduct your own research to ensure any actions you may take are suitable for your circumstances.