Greetings from Wolfline Capital,
In the investment world, Warren Buffet is especially well known for his "value investing" strategy.
This involves buying stocks that seem to be undervalued and selling them years later when they achieve their deserved market value. This type of investment is based on the idea that the market overreacts to sentiment and the media, thus masking the genuine value of many stocks and causing some to be underpriced.
In the book "The Warren Buffett Portfolio", Robert Hagstrom molded Buffett’s style of stock picking "focus investing” into a sequence of seemingly easy steps:
“The essence of focus investing can be stated quite simply: Choose a few stocks that are likely to produce above-average returns over the long haul, concentrate the bulk of your investments in those stocks, and have the fortitude to hold steady during any short-term market gyrations.”
These principles are deceptively simple. There is a lot more to the value investing approach than selecting a few undervalued stocks and just waiting for them to "bear fruit". This approach demands having an outlook beyond the scope of the casual investor. It is a lifetime obsession with learning about business and with studying human nature.
You are welcome to read an interesting and entertaining piece about the "ingredients" of Warren Buffet's approach: https://neckar.substack.com/p/picking-stocks-like-warren-buffett?