Is this suitable for the crypto industry? Buffett's investment advice to young people: Understand accounting, focus on quality companies

Warren Buffett recently provided two pieces of advice for young investors in an interview with Yahoo Finance. First, he suggested mastering accounting, much like learning a language before reading books. Second, he advised focusing on buying good businesses rather than getting caught up in stock price charts.

• You are buying a part of a business (stock), not those price lines
• The best holding period is forever

Learn Accounting Well

Legendary investor Warren Buffett, who is now 89 years old, still ranks fourth on the "2020 World's Billionaires List" published by Forbes with a net worth of $67.5 billion. In an interview with Yahoo Finance, Buffett stated:

You have to understand accounting. It's the language of practical business life. For me, it was a very useful thing to have had. I don't think you necessarily have to have a lot of talent at it, but you have to understand it.

Reduce Time Spent Watching the Market

Buffett also emphasized the correct mindset that a qualified investor should possess, and once again criticized trading techniques such as technical analysis and frequent buying and selling. He pointed out:

You're not buying the wiggles on a chart or a line of a moving average or how far something is above or below 200-day moving averages or whether it's in a pressure zone. You're buying businesses to own a part of them.

He explained, You're buying a piece of a business. If you buy it because you expect it to go up next week, next month, next year, you're speculating. That is not investing. Investing is buying a piece of a business.

The Right Investment Mindset

Buffett used Coca-Cola as an example, holding shares for over thirty years while remaining a loyal consumer of the product.

He said, if you own the stock of Coca-Cola, it wouldn't make any difference to you what it did in 1920 when it went public. That's the importance of the relationship between the company and its customers. It would be better if there were no stock market for 30 or 40 years because then you wouldn't be tempted to sell it. You would just watch the company, watch it grow, and you'd feel good about it.

Buffett, the CEO of Berkshire Hathaway, expressed in his 1988 annual shareholder letter that he wanted to hold Coca-Cola stock for the long term. Coca-Cola is one of Buffett's most talked-about investments, as he describes it as a wonderful business with excellent management. He noted in the letter:

Our favorite holding period is forever. We are just the opposite of those who behave rationally when a company does well and then behave irrationally when it does poorly.

Buffett concluded the interview by emphasizing that the right investment mindset is more important than any technique or skill.

Indeed, looking back at the legendary investors in history, each has their unique approach and has steadfastly adhered to their investment principles over the long term. Former blockchain practitioners have also attempted to "evangelize" Buffett, with TRON founder Justin Sun even paying a hefty sum for a charity lunch with him. However, after the lunch, Buffett maintained his stance that cryptocurrencies have no value.