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15 Things Warren Buffett Never Invested in (#3 Is a Big Regret)

Even the Oracle of Omaha has passed on some major investment opportunities — were they mistakes or smart moves?

By Adam Palasciano

Edited by Lauren Wellbank

Updated Feb. 15, 2025

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, is known for his disciplined investment strategy and long-term approach. With a net worth of approximately $143 billion, his financial decisions and advice have shaped the market and contributed to the financial fitness of other investors.

Buffett has famously avoided certain types of investments, sometimes for decades, citing risk, complexity, or lack of long-term value. But did steering clear of these opportunities help or hurt him in the long run?

Take a look at some of his biggest no-go investments to see how his plans played out.

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Gold

Buffett has long criticized gold, arguing that it doesn’t produce anything and only has value if someone is willing to pay more later.

While gold has been a haven during economic downturns, it has underperformed stocks over the long term. His stock-focused strategy has yielded far greater returns.

Verdict: Right.

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Cryptocurrency

Buffett has been one of the loudest critics of Bitcoin and other cryptocurrencies, calling Bitcoin (BTC) "rat poison squared." While crypto has created overnight millionaires, it remains highly volatile and speculative.

Given the extreme swings in value, his decision to stay away has likely saved him from unnecessary risk.

Verdict: Right.

Tech stocks

For decades, Buffett refused to invest in tech companies, saying he didn’t understand them well enough. He skipped out on early investments in Amazon and Google, which he regrets since these stocks later delivered astronomical returns.

However, he eventually bought into Apple, now one of Berkshire Hathaway’s most successful holdings.

Verdict: Mostly wrong, but he course-corrected.

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Airline stocks

For years, Buffett avoided airline stocks, citing their history of poor margins. In 2016, he reversed course and bought a total $10 billion stake in major airlines like Delta, American, Southwest, and United — only to sell them at a loss during the COVID-19 crash.

His initial instincts were correct, but his later investment misfired. Verdict: Mostly right.

Startups

Buffett prefers investing in well-established companies with strong track records rather than risky startups. While venture capital has produced massive winners, it has also led to countless failures.

His avoidance of the startup world has kept his portfolio steady and profitable. Verdict: Right.

IPOs

Buffett generally steers clear of initial public offerings (IPOs), believing they are often fueled by Wall Street hype in the interest pushing stocks that may not be the best quality.

His preference for proven businesses has generally served him well.

Verdict: Right.

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Hedge funds

Despite their popularity among high-net-worth investors, Buffett has repeatedly criticized hedge funds for their high fees and underwhelming returns.

His famous $1 million bet against hedge funds in 2008 proved him right — an S&P 500 index fund outperformed the actively managed funds over a decade. Verdict: Right.

Real estate investment properties

While Buffett owns a few properties, he has largely stayed away from real estate investing due to a lack of a competitive edge, pricing, and tax disadvantages. Instead, he prefers investing in high-quality businesses with significant growth potential.

Real estate has created wealth for many investors, but his stock-first strategy has delivered far superior returns over time.

Verdict: Right.

Junk bonds

High-yield "junk" bonds offer tempting returns but come with significant risk. Buffett avoids them, preferring companies with strong financials and minimal debt.

While some junk bonds have paid off for risk-tolerant investors, his cautious approach has kept Berkshire Hathaway stable.

Verdict: Right.

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Foreign stocks

Buffett primarily invests in U.S. companies, believing the American economy offers the best long-term growth — since 2008, the U.S. stock market has largely outperformed other international markets.

While there may be some investment success in foreign markets, this approach has yielded positive results for Buffet.

Verdict: Mostly right.

Silver

Buffett has invested $1 billion in silver for its variety of medical and industrial uses.

While other people may invest in gold, he believes that silver has many more applications and is irreplaceable, unlike gold.

Verdict: Right.

Oil stocks

Buffett has invested heavily in Occidental Petroleum (OXY) and Chevron (CVX), which are both two of Berkshire Hathaway’s largest holdings).

Given oil’s price surges over recent years, his move to invest heavily in energy companies was the right move.

Verdict: Right.

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Tesla and other EV stocks

Buffett has been skeptical about investing in electric vehicle companies, saying that uncertainty and intense competition make the industry difficult to navigate.

With consumer adoption of electric vehicles still in its early stages, he thinks that it’s too early to identify a long-term winner.

Verdict: Mostly right.

Speculative stocks

Buffett steers clear of speculative stocks, explaining that speculation is most dangerous when it looks the easiest.

While huge gains can be possible with speculative investments, it’s also possible to lose all of your money. His focus on fundamentals over investment fads has protected his wealth.

Verdict: Right.

High-fee mutual funds

Buffett recommends low-cost index funds over actively managed mutual funds with high fees.

His advice has been widely validated as low-cost funds have been a critical element to Buffett’s financial success.

Verdict: Right.

Bottom line

Buffett’s disciplined investment philosophy has made him one of the most successful investors in history. While he may have missed out on some high-growth opportunities, his cautious approach has largely protected and grown his wealth.

For everyday investors, his strategy raises an important question: Are you making investment decisions that align with your long-term goals, or are you chasing short-term trends? By focusing on solid fundamentals, you can build wealth and make money moves with confidence.

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Gold

Cryptocurrency

Tech stocks

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Airline stocks

Startups

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IPOs

Hedge funds

Real estate investment properties

Junk bonds

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Foreign stocks

Silver

Oil stocks

Tesla and other EV stocks

Speculative stocks

High-fee mutual funds

Bottom line

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