In the past few issues, we’ve talked about the how of investing: stocks, bonds, mutual funds, and even dividend strategies. But sometimes the bigger question is not “what do I buy?” but “how should I think?” 

Warren Buffett has spent decades proving that sustainable, long-term investing beats short-term thinking.

So in this issue, I’m sharing 3 classic lessons from Warren Buffett that make sense whether you’re investing PHP 5,000 or PHP 500,000.

In today’s edition, we’ll go over:

• 3 timeless investing lessons from Buffett

• 3 shocking truths about investing you might now know

TLDR;

The Bottom Line

• Don’t Follow the Herd. Markets run on fear and greed. When everyone is rushing in, that’s usually your cue to pause.

• Compounding Loves the Patient. Short-term trades feel exciting, but real wealth is built by holding for years. 

• Invest in the One Stock That Pays Forever: You. The dividends from yourself are untaxed and unlimited

The content

The Billionaire Who Still Eats McDonald’s

Warren Buffett is the guy who turned a few thousand dollars into billions, and yet still drives himself to McDonald’s in Omaha for breakfast. He’s called the greatest investor of all time. But for me, his advice doesn’t matter just because it made him rich. It matters because it strips investing down to ideas you can actually live by.

I first stumbled on Buffett documentaries back in college. Tucked between the numbers were timeless reminders about patience, value, and common sense. Over time, those reminders changed how I see investing here in the Philippines, especially now in my 20s where the temptation is always to rush: quick profits, hot stocks, hype cycles.

💡 3 Lessons from Warren Buffett

1. “Be fearful when others are greedy, and greedy when others are fearful.”

Buffett’s most famous line is really about resisting human nature. Most of us feel safe when we’re part of the crowd, whether that’s rushing into a hyped IPO, or panic-selling when the market tanks. The problem is, markets move in cycles driven by fear and greed. If you always follow the herd, you end up buying high and selling low.

For a Filipino investor, this lesson matters because hype cycles are everywhere: meme stocks, crypto booms, even onion prices that once soared to PHP 700/kilo (if you remember that time). The hard part is training yourself to pause. When everyone’s rushing in, maybe that’s the worst time to buy. And when everyone’s panicking, that’s when opportunities quietly appear.

2. “Our favorite holding period is forever.”

Buffett invests in businesses he can hold indefinitely. He’s not flipping for quarterly profits. For us, this is a reminder that the real power of investing is compounding.

Think of it this way: the stock market is a machine that transfers money from the impatient to the patient. The sooner you align with “forever” thinking (even if “forever” for you means 10–20 years) the better your odds.

3. “The best investment you can make is in yourself.”

Buffett has said this over and over: before chasing returns in the market, build your own earning power. Why? Because no one can tax or take away the dividends from your skills.

In your 20s, this could mean getting certifications, reading more books, or even building a side hustle. The ROI from these investments can be immediate and exponential. A single skill can double your salary, give you freelance gigs, or open doors that compounding in the market can’t match (or at least not yet).

Why should you care?

3 Shocking Truths About Investing

1. Timing the market almost never works.
   You think you’ll buy low and sell high. Reality? Even pros get it wrong. What works is staying invested and letting compounding do the boring work.

2. Diversification isn’t a magic trick.
   Buffett calls diversification “protection against ignorance.” We do it because we don’t know enough about any one company. That’s fine, but don’t fool yourself into thinking it removes all risk.

3. Volatility ≠ risk.
   Stock prices bounce up and down all the time. That’s volatility. Risk is not having a plan, panic-selling in fear, or investing money you’ll need next month.

Stuff Worth Sharing

The Link Lowdown

• Not All Stocks Just Sit There. Some Pay You: Missed it? Check our last week’s issue

• Becoming Warren: The first documentary I watched about Warren Buffett.