I recently revisited some materials about Warren Buffett on investing and found that this legendary investor’s advice is actually very simple, but also particularly practical.

His first golden rule is direct: never lose money. It sounds simple, but the logic behind it is that once you fall into a loss, it takes double the effort to climb back. That’s also why he is so cautious with every investment.

When it comes to investment strategy, Buffett emphasizes finding a misalignment between price and value. He puts it well: “Price is what you pay, value is what you get.” Many people pay high interest to pay off credit card debt, or buy a bunch of things they don’t need—at bottom, they’re paying a high price for low-value items. His advice is that whether you’re buying socks or buying stocks, you should buy quality items when they’re on discount.

As for debt, Buffett said in a speech in 1991 that he has seen too many people fail because of leverage (borrowed money). He is especially wary of credit cards, because those 18% to 20% interest rates are basically suicide. If he borrowed money at such rates, he would have gone bankrupt long ago. So his advice is very clear: try to avoid debt.

You also can’t ignore the importance of cash flow. Berkshire Hathaway always keeps at least $20 billion in cash equivalents, sometimes even more. Buffett once said a vivid line: cash is to a business what oxygen is to an individual—no one pays attention to it in normal times, but once it’s missing, it becomes the only thing that matters.

Investing in your own abilities is another point he repeatedly stresses. He believes that you yourself are your biggest asset, and any investment made to improve your skills will return to you with a tenfold payoff. And this kind of return can’t be taxed or stolen. At the same time, learning financial knowledge is the best way to protect yourself. Buffett said that “risk comes from not knowing what you’re doing.” The more you understand personal finance, the better you can avoid risk.

For ordinary investors, he gives a very practical suggestion: buy low-cost index funds. Specifically, put 10% into short-term government bonds, and invest the remaining 90% into low-cost S&P 500 index funds. At the 2004 annual meeting, he said that if you allocate your investment evenly over 10 years using this approach, you will outperform 90% of people who start investing in the same period. As for this advice from Warren Buffett on investing, I think it’s especially worth the average investor’s reference.

He also emphasizes the importance of long-term thinking. There’s a very famous saying: “Someone is sitting in the shade today because someone planted a tree long ago.” Dreams of financial freedom, a worry-free retirement, and paying for your children’s tuition can only be realized by planting the tree now. This isn’t about short-term market fluctuations or economic crises; it’s about looking at investing with a multi-decade perspective.

Finally, Buffett also mentioned the value of giving back to society. He said that if you belong to the top 1% of the luckiest people among humankind, then you have an obligation to consider the other 99% of people. He himself has done so as well, co-founding the “Giving Pledge” organization with Bill Gates. Although we may not become billionaires, filling your life by helping others is also a kind of wealth.

Overall, the core of Warren Buffett on investing is: control risk, think long-term, keep learning, spend moderately, and avoid debt. These pieces of advice may not sound novel, but precisely because they’re simple, they’re also the easiest to overlook. And those who overlook them are often the ones who end up suffering the most in building wealth.