Warren Buffett’s method isn't about playing the market; it’s about buying businesses. Most investors see a stock price as a fluctuating line on a graph. Buffett sees it as a claim on the future earnings of a real-world company.

The core of his method involves finding companies with an "Economic Moat"—a structural advantage that protects them from competitors, much like a castle moat protects a fortress. He looks for predictable earnings, high returns on equity, and management teams that act like owners. Once he finds such a company, his strategy is simple: wait for the market to offer it at a "fair price" and then hold it for as long as the business remains "wonderful."