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. Mutual Funds & ETFs

    4 Mutual Funds Warren Buffet Would Buy

    Learn about four mutual funds Warren Buffett would invest and recommend to his trustee, and discover detailed analysis of these mutual funds.
  2. Mutual Funds & ETFs

    Passively Managed Vs. Actively Managed Mutual Funds: Which is Better?

    Learn about the differences between actively and passively managed mutual funds, and for which types of investors each management style is best suited.
  3. Stock Analysis

    Markets Are Tanking: Time to Buy Like Buffett

    Learn about three value stocks Warren Buffett holds in his portfolio. See how Buffett uses market declines to find good deals on stocks.
  4. Investing Basics

    3 Alternative Investments the Ultra-Rich Usually Own

    Learn about the ultra rich and what normally comprises their net worth; understand the top three alternative investments usually owned by the ultra rich.
  5. Stock Analysis

    The 5 Best Dividend Stocks in the Healthcare Sector

    Learn about the top five dividend stocks of companies operating in the health care sector that generate substantial cash flows to afford high payouts.
  6. Investing

    Baby Boomer Philanthropy Shifts Wealth Adviser Focus

    Wealth advisers who integrate philanthropy and finance planning can stand out with baby boomer clients.
  7. Mutual Funds & ETFs

    Mutual Funds Millennials Should Avoid

    Find out what kinds of mutual funds are unsuitable for millennial investors, especially when included in millennial retirement accounts.
  8. Bonds & Fixed Income

    High Yield Bond Investing 101

    Taking on high-yield bond investments requires a thorough investigation. Here are looking the fundamentals.
  9. Investing Basics

    Investing $100 a Month in Stocks for 30 Years

    Find out how you could potentially earn hundreds of thousands of dollars by just investing $100 a month in stocks during your working years.
  10. Investing

    Procter & Gamble Restructures, Sheds 100 Brands

    All businesses face adversity, and Procter & Gamble is no exception. We take a look at recent developments affecting this global giant.
  1. Can mutual funds only hold stocks?

    There are some types of mutual funds, called stock funds or equity funds, which hold only stocks. However, there are a number ... Read Full Answer >>
  2. How do I read and analyze an income statement?

    The income statement, also known as the profit and loss (P&L) statement, is the financial statement that depicts the ... Read Full Answer >>
  3. Do mutual funds pay interest?

    Some mutual funds pay interest, though it depends on the types of assets held in the funds' portfolios. Specifically, bond ... Read Full Answer >>
  4. Why have mutual funds become so popular?

    Mutual funds have become an incredibly popular option for a wide variety of investors. This is primarily due to the automatic ... Read Full Answer >>
  5. Do mutual funds pay dividends?

    Depending on the specific assets in its portfolio, a mutual fund may generate income for shareholders in the form of capital ... Read Full Answer >>
  6. What are the main kinds of annuities?

    There are two broad categories of annuity: fixed and variable. These categories refer to the manner in which the investment ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Real Estate Investment Trust - REIT

    A REIT is a type of security that invests in real estate through property or mortgages and often trades on major exchanges ...
  2. Section 1231 Property

    A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, ...
  3. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  4. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  5. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  6. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!