9. “Buy Stock to Hold it for Life”

This is the most important and perhaps the trickiest part of investing – choosing the right stocks. According to Buffett, investors should find out the ‘intrinsic value’ and return on capital of a stock before purchasing it. Buffett advises investors to hold onto only potentially good stocks. He never says anything about clinging onto the companies that have gone sick. He says to periodically evaluate the stocks and the firm to keep a track on it. If the firm is losing its fundamental strength, then selling it is far better. He preaches of keeping the stocks of only “fundamentally strong” firms.