In a 2018 annual letter to shareholders of his company Berkshire Hathaway, Buffett reminded investors that academic prowess in the capital markets is not a necessity in order to pick winners. Rather, a willingness to focus on fundamentals and to avoid market movements spurred by the masses.

“What investors then need instead is an ability to both disregard mob fears or enthusiasms and to focus on a few simple fundamentals,” said Buffett. “A willingness to look unimaginative for a sustained period — or even to look foolish — is also essential.”

As the extended bull market exits out of its late market cycle, Buffett’s buying strategy can still stand the test of time, particularly when an eventual market correction takes hold of the capital markets.

“A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful,” wrote Buffett.

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