American billionaire Warren Buffett is one of the most prominent investors in history, with a fortune exceeding $100 billion, thanks to an investment philosophy based on simplicity, discipline, and avoiding misunderstood risks.

In a set of six rules he calls the “Money Rules,” Buffett summarizes his more than six decades of experience in investing.

1. Don’t Lose Capital

Buffett places protecting capital as his top priority. He always says: “Rule number one is never lose money, and rule number two is never forget rule number one.”

He believes preserving capital is harder than increasing it, and recovering from losses takes longer than making gains, so wealth must be built on a safe and stable foundation.

2. Invest in What You Understand

Buffett advises avoiding complexity and speculation. A successful investor, in his view, should put money into areas they can explain simply.

Deep understanding of the investment reduces risks and leads to clearer, more confident decisions. As he says: “Simplicity beats complexity every time.”

3. The Power of Compound Interest

One of the secrets that helped build his wealth is the effect of compound interest, letting time turn small gains into massive wealth.

Buffett does not seek quick profits but believes patience is the smartest investor’s strongest tool, and that frequent interruptions in investing “kill growth.”

4. Be Greedy When Others Are Fearful

One of his famous sayings: “Be fearful when others are greedy, and be greedy when others are fearful.”

Buffett considers crisis periods the best investment opportunities because market panic creates large price discounts, and those brave enough to buy at those moments often reap huge profits later.

5. Make Money Work While You Sleep

Financial freedom, according to Buffett, is achieved when money starts working for you instead of the other way around.

Building passive income sources—such as dividend-paying stocks or income-generating real estate—allows financial independence and ensures continuous returns even while sleeping. As he says: “If you don’t find a way to make money while you sleep, you will work until you die.”

6. Daily Learning

The sixth rule is the pillar supporting all previous rules: continuous learning.

Knowledge, in his opinion, multiplies like money, and each day adding new information makes the investor wiser and more successful. Buffett himself spends about 80% of his day reading and learning because he believes “knowledge is an asset no one can take away from you.”

Buffett’s six rules summarize a philosophy that is both simple and profound: protect your capital, invest in what you understand, let time work for you, seize opportunities during fear, make money serve you, and never stop learning.

With these principles, Warren Buffett built his financial empire without chasing noise or obsession with quick profits.