If you're planning to invest in individual stocks, don't base your choice on which companies are performing well right now. Instead, consider which businesses have staying power.
"Nobody buys a farm based on whether they think it's going to rain next year," Buffett told CNBC's "Squawk Box" in 2018. "They buy it because they think it's a good investment over 10 or 20 years."
Buffett decides a business is worth investing in based on if he believes it will last. He purchased See's Candies with longtime business partner Charlie Munger in 1972 and spent more than $1 billion on Coca-Cola stock in 1988 — both of which turned out to be good bets and both of which he still owns today.
"Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value," Buffett wrote in his 1996 letter to shareholders. "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes