Warren Buffett didn't build his fortune by being clever every week. He built it by being patient for decades.
That lesson is easy to admire and surprisingly hard to follow, especially in today's market.
Share prices move every second the market is open, headlines swing from fear to euphoria, and investors are constantly tempted to do something.
Warren Buffett's success is a reminder that, more often than not, the smartest move is to do very little, once you own the right businesses.
Time in the market
Buffett has often said that his favourite holding period is forever. That doesn't mean he never sells, but it does mean he gives great businesses the time they need to compound.
Earnings grow, competitive advantages strengthen, and short-term setbacks fade into the background.
For ASX investors, this is a powerful idea. Australia has fewer global giants than the United States, but it still has companies capable of delivering long stretches of value creation if investors are willing to hold through uncomfortable periods.
A good example of this is CSL Ltd (ASX: CSL). Its share price has gone through multiple rough patches over the years, driven by temporary margin pressure, regulatory noise, or changing sentiment toward healthcare stocks. Investors who sold during those periods often missed the recovery that followed as the company continued to grow its global plasma and biotech operations.
Ignore the noise
Another key Warren Buffett lesson is ignoring short-term share price moves and focusing instead on how the business itself is performing. He doesn't worry about daily volatility if the company's competitive position and long-term economics remain intact.
On the ASX, realestate.com.au operator REA Group Ltd (ASX: REA) is a good example. Property cycles come and go, listing volumes rise and fall, and sentiment can swing wildly. But the underlying strength of REA's digital platform, pricing power, and dominant market position has allowed it to grow earnings over long periods regardless of short-term housing market fluctuations.
It is worth remembering that patience here doesn't mean blind faith. It means understanding the business well enough to distinguish between temporary headwinds and permanent damage.
Compounding rewards patient ASX investors
Compounding often gets described as the eighth wonder of the world, and it works best when investors stay invested. Every year a quality business reinvests profits, improves efficiency, or expands its addressable market, the effect builds on itself.
This is why selling too early can be so costly. Many ASX success stories delivered the bulk of their returns over long holding periods, not in quick bursts. TechnologyOne Ltd (ASX: TNE), for example, has rewarded investors who were prepared to hold through years of steady, sometimes unexciting progress as its recurring revenue model quietly compounded.
Foolish takeaway
Warren Buffett's patience isn't passive. It is deliberate. He spends time selecting high-quality businesses, then gives them the space to perform.
For ASX investors today, I think the lesson is clear. You don't need to predict the next market move or trade frequently to succeed. By owning strong businesses, tuning out the noise, and letting time work in your favour, you give yourself the same advantage Buffett has relied on for decades
