7. “Buy Stocks of Companies Doing Monopoly Business”

This piece of advice might seem a bit strange to most investors but has a reason behind it. Though the policy of having monopoly in this world of free-trade is becoming less frequent, there still exist many companies which have undefeated monopoly. A few such companies include – Microsoft and AT&T. Buffett thinks that stocks which have monopoly have a better and larger market share. Monopolistic firms can “manipulate their selling price at will.” This way they have a strong foot-hold in the market. Due to this, when shares of such companies are sold, it fetches a very good amount of money.