FOX Business Network's Liz Claman will interview legendary billionaire and Berkshire Hathaway CEO Warren Buffett, Berkshire Hathaway Vice Chairman Charles Munger and Microsoft Chairman Bill Gates in an exclusive sit-down following the Berkshire Hathaway shareholder meeting this weekend. Claman is no stranger to Buffett, having interviewed him countless times throughout the course of her career. Below, she shares the four best pieces of investment advice he's given her over the years. After all, who can afford to say they couldn't use a tip or two from one of the world's richest men?

1) The Art of Discipline, Buffett-Style!
If I'm told I shouldn't eat chocolate because it's bad for me, I won't eat it. Until, that is, I'm offered a gorgeous little piece of something by someone passing my desk. Buffett would never break his discipline code, at least when it comes to investing, and that has worked wonders for him.

SEE: Warren Buffett: The Road To Riches

When he's looking to buy a stock, he never EVER overpays for it no matter how much he wants it. What are his rules? Look at the price-to-earnings ratio, how solid the management is, how much cash the company brings in from its operations and then make sure the price isn't elevated beyond what's reasonable. This takes discipline, but you'll find that Buffett is the most disciplined investor on the planet. He sticks to his rules and never strays. And one of his favorite rules is "Buy good stuff at cheap prices!"

2) He look for the ugly ducklings he just knows will eventually turn into beautiful stock swans.
He once said to me, "Liz, you never want to buy the quarterback who just won the Super Bowl. He's too expensive. You want to buy the guy in the hospital bed with his leg in a sling because you know he's cheaper and the odds are, he'll get better and blossom."

3) Be fearful when others are greedy, and greedy when others are fearful.
This is Buffet's way of saying, "Do not follow the herd. Be the contrarian. It'll serve you well." When the herd was running toward dot-com stocks in 1999 and paying ridiculous prices for companies that showed no profit, he remained disciplined (see #1) and stayed away. That way when the herd shifted direction, he didn't get trampled. It works in the reverse as well. When everyone was running away from stocks during the financial crisis, Buffett was elbow deep, buying up the names he'd wanted for so long but were too expensive. Suddenly they were "on sale" and he had lots of dry powder to dive in.

SEE: Warren Buffett's Best Buys

4) Learn how to communicate.
It shocks a lot of people to know that Buffett was incredibly shy and lacked all confidence even through his 20s. He finally forced himself to take the Dale Carnegie course, "How to Win Friends and Influence People" because he realized the only way he'd be truly successful in life - even with his natural ability to allocate financial assets - was if he could communicate to potential investors. It took him quite some time to get up the courage to finally enroll in the course but it's the only document he has framed and up on the wall in his inner office. Not his diplomas, not any awards, just the "Warren Buffett successfully completed Dale Carnegie's course." There's something very poignant to me about that.

Related Articles
  1. Fundamental Analysis

    3 Reasons To Not Sell After a Market Downturn

    Find out the reasons that it is not a good idea to sell after a market downturn. There are lessons to be learned from the last major market downturn.
  2. Fundamental Analysis

    HF Performance Report: Did Hedge Funds Earn Their Fee in 2015?

    Find out whether hedge funds, which have come under tremendous pressure to improve their performance, managed to earn their fee in 2015.
  3. Sectors

    2016's Most Promising Asset Classes

    Find out which asset classes are considered to be the most promising for generating portfolio returns and reducing volatility in 2016.
  4. Mutual Funds & ETFs

    3 Morgan Stanley Funds Rated 5 Stars by Morningstar

    Discover the three best mutual funds administered and managed by Morgan Stanley that received five-star overall ratings from Morningstar.
  5. Mutual Funds & ETFs

    3 AllianceBernstein Funds that Are Rated 5 Stars by Morningstar

    Discover the top three mutual funds administered and managed by AllianceBernstein that have received five-star overall ratings from Morningstar.
  6. Retirement

    Is it Safe for Retirees to Invest in Technology?

    Tech stocks are volatile creatures, but there are ways even risk-adverse retirees can reap rewards from them. Here are some strategies.
  7. Mutual Funds & ETFs

    Is Morningstar’s Star System An Effective Ranking Tool? (MORN)

    Learn why Morningstar's star rating system is not always a great predictor of future performance, and why investors should not pick funds on star ratings alone.
  8. Stock Analysis

    The Top 5 Oil and Gas Stocks for 2016 (XOM, BP)

    Read detailed analyses of the top five oil and gas stocks, and learn why they may be poised to rise in 2016 after a dismal 2015.
  9. Retirement

    Roth IRAs Tutorial

    This comprehensive guide goes through what a Roth IRA is and how to set one up, contribute to it and withdraw from it.
  10. Stock Analysis

    If You Had Invested Right After Berkshire Hathaway's IPO (BRK.A)

    Learn how much you would now have if you had invested right after Berkshire Hathaway's IPO, and find out the classes of shares that you could invest in.
RELATED FAQS
  1. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  2. How liquid are Vanguard mutual funds?

    The Vanguard mutual fund family is one of the largest and most well-recognized fund family in the financial industry. Its ... Read Full Answer >>
  3. How do mutual funds work in India?

    Mutual funds in India work in much the same way as mutual funds in the United States. Like their American counterparts, Indian ... Read Full Answer >>
  4. Are UTMA accounts escheatable?

    Like most financial assets held by institutions such as banks and investment firms, UTMA accounts can be escheated by state ... Read Full Answer >>
  5. What are the dormancy and escheatment rules for stock accounts?

    While the specific dormancy and escheatment rules for stock accounts vary by state, all states provide for the escheatment ... Read Full Answer >>
  6. Does mutual fund manager tenure matter?

    Mutual fund investors have numerous items to consider when selecting a fund, including investment style, sector focus, operating ... Read Full Answer >>
Hot Definitions
  1. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  2. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  3. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  4. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  5. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
Trading Center