Warren Buffett is considered one of the greatest investors of all time because of the strong returns the “Oracle of Omaha” has generated for his company Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) over the years.

Buffett uses a disciplined strategy and has rules in place to maximize profits and limit risk. Here’s a look at some of Buffett’s investing principles.

Long-term treasury shares: One of Warren Buffett’s investing principles is to buy and hold stocks.

buffet Bought his first share at age 11 for $38 a share. Buffett sold the stock for a $40 gain.

The stock would later soar to over $200, and he cites that as if he learned a lesson about patience in investing.

“If you don’t think about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”

Buffett bought shares of Coke KOone of his largest holdings, in 1988.

“Our preferred holding period is forever,” he said.

Related link: Warren Buffett turns 90: A highlight for every decade of his life

Buy what you know: buffet invested at Coca-Cola as a fan and consumer of the product.

As a buffet become a student from renowned investor Benjamin Graham, he wanted to know more about a company called GEICO, of which Graham was chairman.

Buffett rode the train to GEICO headquarters and was let in by a janitor. Buffett had a meeting with Lorimer Davison, the only person working that day.

Davison, who would become GEICO’s CEO, answered Buffett’s questions and gave him the knowledge he needed to invest in the insurance company later.

Buy stocks at cheap prices: buffet believes Invest in companies that are reasonably valued and profitable.

Buffett’s principles are to invest in companies that have easy-to-understand business models, predictable and proven earnings, and an economic moat: “Never invest in a business you can’t understand.”

In 2016, Buffett invested in apple inc AAPL after years of being tech-shy…