According to Milk Road (@MilkRoadDaily), Warren Buffett's strict investment principle of only buying what he fully understands has led him to avoid technology stocks such as Microsoft, despite his close relationship with Bill Gates since 1991 (source: Milk Road, May 5, 2025). For crypto traders, this approach highlights the importance of thorough due diligence and understanding project fundamentals before investing, especially in complex assets like cryptocurrencies. Traders can apply this principle to minimize risk and make informed decisions in volatile markets.

According to The Kobeissi Letter, Berkshire Hathaway has delivered a staggering 5,500,000% return since 1964, transforming a $10,000 investment into $550 million, compared to approximately 39,000% for the S&P 500. This marks outperformance by over 140 times. For traders, this highlights the potential impact of long-term compounding and the value of disciplined investment strategies, as demonstrated by Warren Buffett's approach. Such data-driven outperformance suggests that identifying fundamentally strong assets and maintaining a long-term horizon can yield significant trading advantages. Source: The Kobeissi Letter (Twitter, May 4, 2025).