Warren Buffett made his billions investing in US stocks, not ASX shares.
But the principle to mirroring his fantastic success is the same, whether you're investing internationally or sticking exclusively to ASX shares.
Now, the Oracle of Omaha didn't start life with millions of dollars. And he didn't become uber-rich overnight.
But by sticking to some surprisingly simple investing techniques, Warren Buffett made the billionaire's list by the time he was 56.
And he sure didn't stop there.
Today, aged 94 and still managing Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), Warren Buffett is worth more than US$145 billion (AU$215 billion), according to Forbes.
And Berkshire's market cap is north of US$700 billion, according to Financial Advisor.
With that said, here are five simple ways for you to invest in ASX shares like Buffett.
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Investing in ASX shares the Warren Buffett way
Among the top tips to take away from Warren Buffett is the importance of a properly diversified portfolio.
That means looking for a range of ASX shares to invest in, with companies operating across various sectors and locations. A diverse portfolio reduces the overall risk to your portfolio if a single company or sector hits a rough patch.
In Buffett's case, some of Berkshire Hathaway's top holdings include Coca-Cola Co (NYSE: KO), Apple Inc. (NASDAQ: AAPL), American Express Company (NYSE: AXP) and Geico, a wholly owned subsidiary of Berkshire Hathaway.
The second way to invest, like the Sage of Omaha, is to invest in ASX value shares and not try to chase the latest hot speculative stocks.
So, what should you look for?
According to Warren Buffett, "Look for companies with great brands and the ability to control prices."
The third simple Warren Buffett investing technique you can apply to ASX shares is to invest in quality companies. That means companies with strong management teams and reliable earnings.
Ideally these companies will also have sizeable barriers to entry. Coca-Cola is a great example of this. "In business, I look for economic castles protected by unbreachable moats," Buffett famously said.
Which brings us to the fourth simple Buffett rule you can apply to ASX shares: Keep it simple and stick to what you know. "You don't have to be smart, as long as you stick to what you know," he's said.
In other words, if you don't understand it, don't invest in it.
That's why you won't see Berkshire investing in the likes of Bitcoin (CRYPTO: BTC).
Rounding off with the fifth simple way you can invest like Warren Buffett is to be patient and keep your eye on your long-term goals.
This means avoiding panic selling when quality ASX shares in your portfolio take a temporary downturn, as well as avoiding trying to time the market's ups and downs in general.
"Our favourite holding period is forever," he's said.
Speaking of favourites, I also love this Buffett quote, "The weeds wither away in significance as the flowers bloom. Over time, it takes just a few winners to work wonders."
Good luck putting these simple tips to work.
And when in doubt, make sure to reach out for some expert advice.
