3. Dividends Are Your FriendBuffett loves dividends, as do most value investors.Dividends are a great perk to buying a company, as it usually shows that the company’s finances are in good enough shape to support paying out its hard-earned money.

4. Always Buy Undervalued StocksBuffett is a big-time value investor, and always looks to buy undervalued stocks based on their intrinsic value.He calculates the intrinsic value by looking at the company’s fundamentals — at a minimum of over the last five years, sometimes longer. He looks a lot at return on equity, operating margins, and having little or no debt. He compares the company to its peer group, and likes to see if it is undervalued.

5. Buy and Hold Finally, Buffett is a true buy-and-hold investor. He holds his positions for a long period of time, and constantly reiterates this to his followers.In fact, he has said that he likes to “buy and hold forever.” And it is true, since he has owned many of his positions for over 20 years, which is eons in the investing world.