5 Rules for Investing Like Warren Buffett in 2025

[Music] Warren Buffett is one of the most legendary investors of all time and it's all because he's mastered the art of finding stocks that are good today and will still be thriving decades from now so in this video we're showing you exactly how to spot those kinds of companies by analyzing Buffet's five biggest Investments because when you take a closer look at them you'll find they all have one thing in common and once you understand it the way you think about investing and Building Wealth will change forever welcome to alux the place where future billionaires

come to get inspired all right so as we're starting off here let's just get two things straight about Warren Buffett because look we're not going to give you the same tips like Buy Low sell High we're going deep today first of all Warren is no day trader when he buys a company he's in it for the long haul which is why picking great companies is such a core part of his strategy and secondly Warren believes in diversification if you look at his portfolio it's like a map of the economy covering everything from Tech to finance

to retail but here's the thing okay Warren doesn't just toss his money at the whole industry no he's zeros in on just a handful of companies the best ones and that ability to pick winners has made him one of the richest people in the world but how does he know when companies are the best well my friend every single company in Warren's portfolio has one thing in common and that's what we're here to talk about today to show you let's break down the top five investments in Warren's portfolio and what they've got in common and

just a quick heads up this is not investment advice okay we're here to learn from Warren strategy not tell you which stocks to buy okay so let's start off with Warren's genius play in the energy sector so investing in energy comes with a lot of challenges because it's a volatile and Incredibly competitive industry I mean there are dozens of multi-billion dollar energy companies out there and Warren had to place his bets on the best one the company he picked was Chevron but why why not Exxon Mobile BP or shell well the answer becomes clear when

you start comparing them xon mobile is undeniably strong but it's too dependent on specific regions for natural resources BP on the other hand well they've struggled for years with mismanagement you remember that spill don't you and shell has been expanding aggressively but that's left it exposed to Rising gas prices now Chevron operates across the entire value chain from from drilling to refining to delivering fuel at the pump now usually running a company like this is extremely complicated but Chevron is remarkably efficient I mean one of their core values is literally operational excellence so profitability is

baked right into the company's DNA Chevron is a huge company so it can spread out its costs across the business that means more profit plus their cuttingedge technology helps them to extract and refine energy faster and cheaper than smaller companies ever could and because it controls every step of the process from drilling to delivering the final product it's far less vulnerable to disruptions that could easily Crush other companies and that right there is called an economic moat and it's what every Company Warren invests in has in common so what is a moat well imagine a

big castle with a wide Deep River around it that moat protects the castle from Invaders in business the castle is the company and the moat is what protects it from its competitors ensuring long-term success this is what Warren looks for in every investment companies that can lead the industry and survive anything the market throws at them in chevron's case their moat is the ability to stay cost-effective at such a massive scale and that's why Warren currently owns over $18 billion worth of Chevron stock so if you want to build real lasting wealth the key is

to invest in companies with strong economic modes and now that you know what they are let's dive into Warren's next four biggest investments in each one we're going to break down exactly what makes them special and reveal the Moes that keep them ahead of their competitors so by the end of this video not only will you understand how Warren built his fortune you'll also learn how to spot companies with economic Moes yourself and you'll be one step closer to achieving Financial Freedom all right so let's shift gears to a company in a completely different an

industry and one of Warren's most iconic and honestly genius Investments we're talking about the Coca-Cola Company now there's this myth about how Coca-Cola has some kind of top secret formula right but for every Coke there's a Pepsi a Dr Pepper or one of a thousand storebrand Alternatives that you couldn't tell apart in a blind taste test so why is Coca-Cola one of Warren Buffett's most iconic Investments well the truth is even though the product isn't that unique Warren knew Coca-Cola had three economic Moes its competitors could never copy no matter how hard they tried so

let's break them down first of all Coca-Cola has phenomenal branding after years of iconic marketing campaigns people have learned to associate coke with the feeling of joy and because of that they can charge higher prices than Pepsi or Dr Pepper and still sell more but Coca-Cola isn't just a drink it's a global Empire the company has expanded its portfolio to include juice tea even water so as long as people need to drink stuff and we always will Coca-Cola will stay relevant however the real reason why Coca-Cola will always dominate its competition is its global distribution

Network Coca-Cola Partners its products with restaurants gas stations retailers and distributors in over 200 countries to make sure their products are always front and center you'll find a Coke wherever you go and in some places it's even more common than water this combination of branding I a diversified product line and an unbeatable distribution network is really what creates Coca-Cola's economic moat competitors can copy the product but they'll never be able to copy the customer loyalty and sheer scale of the Coca-Cola company for Warren Buffett that's exactly the kind of company worth investing $25 billion into

a company that's built to last and of course it doesn't hurt that he's a daily Coke drinker himself so when you're evaluating your next long-term investment don't just look at what you're selling ask yourself is this company a part of people's lives in a way that no competitor could replace that's the kind of moat that doesn't just protect your investment it builds lasting wealth and that's great and all but look okay understanding these Concepts is only half the battle to truly change your life you need to take action if you're serious about becoming a smarter

investor and making confident financial decisions the alux app was built for you our app is designed for people who are ready to think and act like billionaires not just in finance but in every area of your life your relationships physical health your intellectual growth and emotional wellness and what sets the alux app apart is it keeps you focused on your progress you'll track how far you've come towards your financial and personal goals just like an investor measures Returns on their portfolio so as you build your skills you'll feel the confidence to take the kinds of

action that lead to re real lasting results with daily insights goal setting tools and exclusive lessons the alux app gives you the edge you need to analiz Opportunities and make smarter more strategic decisions think of it like a personal self-development coach right in your pocket we've partnered with some of the world's top business experts to bring you strategies that actually work so you can start applying them right away hundreds of thousands of CEOs and professionals are already using the alux app to level up their decision-making and take control of their Futures and it's time that

you join them and we've got a killer deal for you just download the alux app onto your phone scan that QR code on screen and you'll get a staggering 50% off your yearly plan because we want to make sure the Year we're heading into is the year you finally make it happen to yourself don't just dream about Financial Freedom no start investing in it if there's one thing Warren Buffett would tell you it's the best investment you'll ever make is in yourself we'll see you on the side but for now let's just move on to

Warren's thirdd largest investment this one's a financial Powerhouse and its moat will change the way you think about business forever so after the 2008 financial crisis Bank of America's stock was down over 90% from its peak most investors ran for the hills but Warren saw something in this company that made it stand out from the other big Banks think about it JP Morgan is wildly successful but it leans too heavily on investment banking City group is huge globally but doesn't go deep enough into key areas and Wells Fargo is big on consumer banking but it's

been held back by scandals and a lack of innovation now all of these banks handle trillions of dollars and so does Bank of America but there's a difference while other Banks tend to specialize in one area Bank of America brings everything a customer could need into a seamless system now sure it's got all the usual services personal banking credit cards mortgages wealth management even Investment Banking but what makes Bank of America special is how it ties all of them together into a single connected experience for example if you have a checking account it's easy to

move into their wealth management services or if you're a small business owner you could get loans credit cards and even merchant services all without leaving the bank it's incredibly convenient and that's what gives Bank of America an edge it doesn't just gain customers it keep keeps them this is the economic moat that Warren saw in Bank of America its connected services are huge advantage that protect them from the competition that's why Warren owns over $36 billion worth of Bank of America stock NOW the lesson here is not just to look at how big a company

is look at its long-term relationships with people Bank of America is designed to grow with their customers through their entire lives offering everything they need at every stage companies like that don't just survive they Thrive for Generations but moving on now it's time to talk about one of Warren's most famous Investments this time it's not a bank but a credit card company whose moat is that they know a thing or two about human nature now most people think of credit cards as simple tools to pay for stuff and maybe earn a few points here and

there but when Warren Buffett invested in American Express he saw something entirely different you see most credit card companies like visa and MasterCard make money by charging businesses a tiny fee every time a customer uses their card so they have to get as many customers as possible American Express takes a completely different approach yes they do charge businesses too but they also charge hundreds and even thousands of dollars directly to their card holders every year but like with that in mind why would anyone choose American Express well while visa and MasterCard were competing on transaction

fees American Express was creating an exclusive brand that people aspired to be a part of and they don't just let anyone in Now American Express partners with businesses that offer premium experiences like concierge services first class tickets and luxury hotels and their customers are people who are willing and able to pay for them now this wasn't just a credit card it was a status symbol and that's why Warren Buffett couldn't resist it the more Elite the American Express brand feels the more high value customer card holders join the network and the more luxury businesses want

to partner with it which makes the brand feel even more Elite and that starts the cycle all over again this is what Warren recognized in American Express they're moat the thing that protects them from competitors is the ultra loyal network of high value customers it attracts that's something visa and MasterCard can't copy and that's why Warren Buffett hasn't sold any American Express stock in 12 years his investment is now worth over $46 billion remember businesses don't just sell products and services they also sell a feeling people use American Express because they want to feel successful

and important and that's what separates a good company from a great one the ability to connect with people on a deeply human level now if you'd like access to the same kind of Lifestyle an American Express Black Card can get you the Alx app has all the tools you need for your journey to Financial Freedom just download the app scan that QR code on screen and you'll get 50% off your yearly plan to make sure 2025 is the year you make it all happen for yourself all right now we're going to finally talk about Warren

Buffett's single biggest investment a company that's completely changed how we live work and interact with the world that company is Apple my friend now historically Warren has avoided tech stocks because companies can come and go in the blink of an eye and yet he he's called Apple probably the best business in the world so why are they the exception well for starters Apple combines the best of every other company we've mentioned it's got chevron's scale and efficiency Coca-Cola's Brand Power Bank of America's customer loyalty and The Prestige of American Express it has Moes on top

of Moes on top of Moes however the real beauty of Apple's business is something called the Walled Garden let me explain okay so when you buy an iPhone it works seamlessly with your Apple watch and your new airpods plus your notes and pictures sync automatically to your Mac and then there's the services like apple music Apple TV plus iCloud and the App Store it all just works and before you know it you might not even be able to imagine your life without apple and you know what that means nearly $400 billion in yearly Revenue Apple's

Walled Garden is its greatest strength what Warren saw as the ultimate moat their product ecosystem is so seamless and integrated that once you're inside it's almost impossible to leave that's why apple is Warren Buffett's single biggest investment currently worth over $70 billion the best companies don't just attract customers they become a central part of their lives as far as prisons go though you could do a lot worse than Apples W Garden people genuinely love their products and I mean even Warren himself traded his Trust trusty old $20 flip phone for an iPhone when a company

can create that level of connection it's not just a good investment it's one of the greatest businesses in the world okay so you need to understand that Warren Buffett's investment Success is Not magic okay it's just the result of buying stocks with a clear Edge over their competitors a strong economic moat the good news is you don't have to be Warren Buffett to apply this in your portfolio you just have to ask the right questions how does this business work what protects it from competition and is it built to last that's how Warren Buffett picks

smart Investments and how you can start building Financial Freedom and if you're ready to take your first steps toward wealth and success come join us in the alux app and start your journey today all right alexer we'll see you on the inside until then take care