How Warren Buffett's advice is guiding the ASX shares I'm buying in 2024

Here's how my next buy will be influenced by Buffett…

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When looking for successful stock market investors for inspiration, there is arguably no better figure to turn to than the legendary Warren Buffett.

Over his exceptionally long investing career, Buffett has achieved astonishing returns, turning his company Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) from a failing textiles mill into the US$881 billion behemoth it is today.

Fortunately for every single investor on the planet, Buffett has always been generous with his wisdom and guidance. His annual letters to the shareholders of Berkshire Hathaway, as well as his famous shareholder meetings, are typically jam-packed with advice, tips and cautionary tales.

So today, let's discuss how Warren Buffett's advice is guiding my own ASX share investing in 2024.

How Waren Buffett is helping my 2024 stock market investing

Buffett: Keeping it simple

The investing world is perpetually in the grips of the latest fad. Whether it be lithium stocks, uranium shares or cryptocurrency miners, there always seems to be a sector or corner of the market that is booming as investors flood in to try and grab a piece of the next big thing.

But Buffett has never been a trendjumper or setter for that matter. In fact, he typically warns investors to stay in their lane. Here are two quotes that best sum up Buffett's attitude:

Beware the investment activity that produces applause; the great moves are usually greeted by yawns.

Never invest in a business you cannot understand.

As such, I'll be staying away from the hot stocks in 2024, sticking to businesses that I can easily understand. That's why I'll be far more likely to buy shares of say Coles Group Ltd (ASX: COL) than Arcadium Lithium plc (ASX: LTM).

Look for ASX shares with something special

Disciples of Warren Buffett would be well aware of the man's love of what he calls an economic moat. A moat is a durable competitive advantage that a company can possess, which helps it stave off competition:

The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.

This could come in the form of a strong brand, a product that investors find difficult to stop using, or a cost advantage that ensures a company's products are the cheapest available.

We can see this reflected in Buffett's own portfolio at Berkshire. Most of Berkshire's holdings have an obvious moat – Coca-Cola's universally known brand or Apple's reputation for quality products are two such examples.

Using this principle, I'm hopeful that my next ASX share buy in 2024 will be a company with a strong moat. It might be Transurban Group (ASX: TCL) for its network of almost unavoidable toll roads across Australia or perhaps Lottery Corp Ltd (ASX: TLC) for its exclusive rights to run lotteries and Keno in most Australian states.

Foolish takeaway

In my view, there is no one better than Warren Buffett if you want investing advice and inspiration. As such, my next ASX buy will hopefully be one that Buffett would approve of.

Motley Fool contributor Sebastian Bowen has positions in Apple, Berkshire Hathaway, and Coca-Cola. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Berkshire Hathaway, Lottery, and Transurban Group. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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