Warren Buffett's Stock Investment Principles: Principle 1: Treat dips as discounts When the stock market drops by around 3%, don’t panic. As long as you plan to hold quality U.S. stocks for the long term, cheaper prices are always a good buying opportunity, not bad news. Principle 2: Focus on long-term value, ignore short-term fluctuations No one can accurately predict stock prices next week, next month, or even next year. The essence of investing is buying into businesses. As long as the underlying logic of the business hasn’t changed, short-term price swings don’t affect its intrinsic value. Principle 3: If you don’t sell, dips can’t hurt you As long as you don’t need to cash out immediately, other people’s low offers are meaningless. Only those forced to sell at a loss during a dip will suffer losses.