Buffett’s Timeless Principle: The Best Investment Strategy "Buy Great, Hold Long"
Who is Warren Buffett and What Sets Him Apart?
Understanding the “Buy Great, Hold Long” Principle
Warren Buffett’s Investment Strategy
- Understand Where You’re Investing
- Focus on Long-Term Investing
- Know Your Limits When Investing
- Always Keep Cash on Hand
Applying “Buy Great, Hold Long” in Indonesia
Safe and Optimal Investment with a Trusted Partner
The “Buy Great, Hold Long” strategy, or buying quality assets and holding them long-term, has proven to be a timeless investment approach—including when applied to instruments such as Government Bonds.
Interestingly, this principle is not only relevant in the U.S. market but can also be applied in Indonesia, especially through relatively safe and stable instruments that offer regular returns like Government Bonds.
This article invites you to explore Warren Buffett’s investment philosophy and how you can adapt it to domestic investment strategies.
Who is Warren Buffett and What Sets Him Apart?
Warren Buffett is a legendary figure in the investment world and the CEO of Berkshire Hathaway. He is well-known for his disciplined, rational, and long-term-oriented investing style.
Dubbed the “Oracle of Omaha,” Buffett is not just a successful investor—he is also admired for his ethical principles and patience in investing.
What distinguishes Buffett from many other investors is his ability to identify opportunities based on long-term fundamental value, rather than short-term price speculation.
He believes the key to successful investing lies in understanding the business, trusting its quality, and holding it for years.
Understanding the “Buy Great, Hold Long” Principle
This principle is rooted in the belief that the best investments come from buying high-quality assets—whether companies, financial instruments, or other investment products—and holding them over the long term.
In practice, this means choosing assets with strong fundamentals, a consistent track record of performance, and sustainable growth potential.
“Buy Great” means selecting truly outstanding assets: companies with clear business models, competitive advantages, credible management, and stable cash flow.
“Hold Long” means giving the investment time to grow, through market cycles and economic shifts, without rushing to sell.
This principle contrasts with speculative investing that focuses on short-term price movements, as it emphasizes patience and trust in the asset’s intrinsic value.
Warren Buffett’s Investment Strategy
To apply this principle, Warren Buffett emphasizes several fundamental approaches that are relevant to investors worldwide—including in Indonesia.
- Understand Where You’re Investing
Warren Buffett only invests in instruments he fully understands.
This understanding includes how the business model works, the industry context, and the potential risks that may arise in the future.
He deliberately avoids investing in sectors he deems too complex or outside his circle of competence. This principle aims to reduce uncertainty and maintain clarity in decision-making.
In practice, this strategy forms the foundation of an investment approach based on logic, in-depth analysis, and a clear assessment of an asset’s intrinsic value.
- Focus on Long-Term Investing
For Buffett, time is the key to building sustainable wealth.
He stresses that the best investments are those that can be held for the long term—indefinitely, even—as long as the asset’s fundamentals remain intact.
This strategy not only reduces the risks associated with short-term fluctuations but also allows investors to benefit from compounding.
Through this approach, Buffett demonstrates that patience and discipline are critical for consistent asset growth over time.
- Know Your Limits When Investing
One of Buffett’s key principles is recognizing your limits before making investment decisions.
He advises investors to stay within their “circle of competence”—areas where they have adequate understanding, experience, or knowledge to assess risks and opportunities objectively.
Chasing opportunities outside this circle can lead to losses.
This principle encourages investors to be realistic about their analytical capabilities and to build a solid strategy aligned with their strengths.
- Always Keep Cash on Hand
Liquidity is an essential component of Buffett’s investment strategy. He believes having cash on hand gives investors the flexibility to seize sudden opportunities or handle uncertain market conditions.
That’s why he ensures his companies maintain adequate cash reserves as a form of risk mitigation.
Having liquid funds enables investors to act quickly when promising assets become available and to stay resilient during market downturns.
This principle reflects that prudence is a key part of long-term investment success.
Applying “Buy Great, Hold Long” in Indonesia
This principle is universal and can be applied across various investment contexts, including in the Indonesian market. Many instruments support long-term approaches, such as stocks, real estate, and increasingly popular Government Bonds.
These are debt securities issued by the government to fund national budgets and development. Since they are backed by the government, they are considered low-risk investments and offer steady returns through periodic coupons.
In the context of the “Buy Great, Hold Long” principle, Government Bonds can be seen as reliable and credible assets, issued by a trusted institution (the state), and offering a clear mechanism for repayment and interest.
As such, they are ideal for a “hold to maturity” approach, especially for investors seeking stable cash flow and capital protection in the long run.
Safe and Optimal Investment with a Trusted Partner
If you want to apply the best investment strategy, Government Bonds through DBS Treasures priority banking could be your solution. You’ll receive regular coupon payments and the potential for capital gains.
DBS Treasures priority banking offers a secure and efficient transaction process with transparent pricing and no hidden fees.
All Government Bond investment activities can now be done digitally through the DBS digibank Application.
From market monitoring and purchases to switching instruments—all are available within an integrated platform designed to support the lifestyle and mobility of Priority Clients.
With 24/7 full access, you can manage your portfolio flexibly and independently, anytime you need, without visiting a branch.
Even the Single Investor Identification (SID) registration can be done directly through the app, with no extra fees beyond the buy-sell price spread.
Investing with DBS Treasures priority banking is designed to deliver maximum efficiency, transparency, and convenience—supporting smart and practical financial decisions for premium clients like you.
Additionally, DBS Treasures priority banking provides personalized recommendations from financial experts who understand your investment needs.
This investment approach aligns with Warren Buffett’s philosophy: invest in the best, and hold it for the future.
You’ll also be supported with curated market insights from financial experts, tailored to your risk profile and portfolio needs—powered by Artificial Intelligence and Machine Learning (AI/ML). These insights are complemented by curated solutions for both investments (Grow) and insurance (Protect), so you can invest quickly and confidently using your preferred platform.
Make the “Buy Great, Hold Long” principle part of your financial strategy. Discover investment opportunities in Government Bonds with DBS Treasures priority banking—click here and enjoy the long-term peace of mind offered by stable, credible instruments.
