Berkshire Hathaway achieved revenue of over 90 billion US dollars in the second quarter of this year, far exceeding the market's expectations. Once this report came out, many investment circle friends frequently analyzed Buffett's positions.

In fact, even if Old Ba (Buffett) revealed his positions to the public, not everyone might be able to make considerable profits like him. What is behind such a substantial profit? How did Buffett do it, and what is the secret to his wealth?

Truly understanding Buffett's deep-seated philosophy is a particularly valuable thing.

At this point, if you ask 100 investment circle friends: Do you regret entering the stock market? I think many people's answers would be affirmative, because when the current valuation is relatively at the bottom, many people are in a state of panic, and disappointment is always greater than hope. Compared to the expected returns they set before entering the stock market, it has deviated significantly.

After the track deviates, operations are prone to deformation, and after operations deform, the consequences are unbearable.

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However, looking at the long term, even if you don't invest in the equity market, without a certain amount of patience, can you really carve out a bright path in other industries?

I think many people's answers are vague.

The most admirable point about Buffett, I think, is a firm goal. He has been investing in equities for more than 60 years. It's hard to imagine how strong his heart is to persist on a path for over 60 years.

A firm goal + time, even if it's very dark at the moment, will surely wait for the dawn of a day. From another perspective, having a firm goal alone is not enough to support the long term. In a limited time, you still need to make some investment strategies. Tao and technique are equally important in investment.

The investment philosophy of the stock god is not actually very profound and mysterious, but it is very clear in the investment principles, mainly divided into three points.1-Asset Diversification

Don't put all your eggs in one basket, just like Warren Buffett's business sectors, which are actually distributed across different fields.

For example, in the second quarter financial report, Berkshire Hathaway disclosed its top five holdings of stocks:

Apple ($177.6 billion)

Bank of America ($29.6 billion)

American Express ($26.4 billion)

Coca-Cola ($24.1 billion)

Chevron ($19.4 billion)The holdings of these five stocks account for 78% of the overall investment portfolio. They play their roles in various fields, generating cash flow for the company.

2-Long-term holding

Before choosing to invest in a company, Buffett's philosophy is to hold it for the long term. Unless he encounters a more outstanding company after the investment, or the fundamentals deteriorate, he will consider exiting.

If you have read Buffett's letters to shareholders, you will know that the companies he holds are basically more than 10 years old, and many of them have been for decades.

In the investment circle, patience has become a "luxury". But not everyone can cultivate this "luxury" state, so maybe we really haven't made a profit in this field because of patience.

3-Healthy cash flow

From Buffett's past investment experience, there is one point that is worth learning for us investors: Buffett rarely borrows.

Although he is very clear about leverage, borrowing for investment is something he is extremely resistant to. Therefore, having a healthy cash flow is a necessary and important part of his investment.

Healthy cash flow is the cornerstone of his investment. Once an economic or financial crisis occurs, this cornerstone plays a significant role. He can enter the market calmly with sufficient cash flow and pick up cheap chips.

Buffett has a deep understanding and clear grasp of the "money begets money" principle, allowing every cent to play its role.If one were to view a person as a mini Berkshire Hathaway company, with Buffett replaced by yourself, how would you operate this company, how would you make money like Buffett, and how would you manage the money in your hands...

First, take stock of the salary after deducting expenses and clarify the remaining part. Treat the monthly surplus as a healthy cash flow. For ordinary investment, the best investment is to create cash flow while working and to look for suitable investment products for oneself at the same time.

Work provides us with the most basic security, and rational investment allows us to achieve "making money with money".