Warren Buffetta’s timeless investment wisdom can be more suitable than ever in 2025. FTSE 100 AND S&P 500 Reaching record ups, the temptations of prosecuting constantly growing markets seemingly escalate, causing investors to potentially expose themselves to too greedy.

So what are the key advice that the investor investor Buffett has given over the years that could facilitate other investors develop in today’s market climate?

Focus on the basics

When modern industries appear, it is uncomplicated to catch the noise. Artificial intelligence (AI) is currently storing the investment world, and companies such as companies Nvidia achieving a huge growth. However, in the method of valuation of some AI actions, markets may be self -levy, expecting that everything will grow in current rates forever.

The prosecution of these possibilities can be a classic case of falling victim of fear of missing – something that Buffett clearly warned against. Instead, investors must maintain excitement, looking where they are not others, and focus on basic business, not on an electrifying history.

Buffett often said that “Cash is always a bad investment”. Considers vast cash actions much worse in comparison with “Ownership of good companies”. Yet Berkshire Hathaway Currently, it has about USD 350 billion, sits in a balance sheet.

This is because cash is still a critical tool. It provides flexibility in action when unique possibilities appear, while providing protection against unstable market conditions. And both can be extremely beneficial when they try to defeat the market.

What I do

Because the markets reach the ups of all time, my portfolio enjoyed impressive double -digit profits since the beginning of 2025. However, I am more and more nervous that the markets do not reflect the potential impact of the growing risk of geopolitical and commercial tension.

That’s why I started to follow in the footsteps of Buffett and started building cash. But even in this market environment there are still many lucrative possibilities. At the same time, I also studied industries that investors are now ignoring.

Hidden gem?

One company that caught my attention this month Holdings security (LSE: sheltered). The authors operator took a demanding ride since the end of 2022, losing more than half of his market capitalization. And this edged drop is not completely unjustified. Higher inflation and interest rates have impaired economic growth, which causes lower demand, lower occupancy and weaker price environment. However, signs of reflection have already appeared again.

The basic occupancy and prices have returned, the outer rear winds, such as home renovation, began to heat up, and economical winds are slowly distracting. And because the management was able to continue investing and expanding during a slowdown, it seems sheltered to prepare nicely for potentially shifting and exceeding its competitors both here in Great Britain and in modern European territories.

These are all the features of Buffett he is looking for. But there is still a macroeconomic risk that can be carefully observed, especially in the case of business clients, where the demand for self -preservation remains quite needy. And if the economic conditions again acidic, Safestore shares could have more to fall.

Nevertheless, the company remains well capitalized and still generates impressive amounts of free cash flow, which gives it constant flexibility in the weather of the storm. That is why, despite the risk, I am considering increasing my position in the warehouse.