News & Trending Investing News

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?

AI picture of warren buffett
Updated Feb. 15, 2025
Fact checked

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.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Gold

misunseo/Adobe Gold bars and Financial concept

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.

Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.

Cryptocurrency

Proxima Studio/Adobe bitcoin 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

Tada Images/Adobe Assorted app icons on screen

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.

Smart Drivers, Smarter Savings
Compare car insurance rates in Ohio
See if you qualify for a lower rate in less than 2 minutes
Check Rates

By clicking the button above, I understand and agree that this site uses site visit recording technology (provided by Trusted Form, Jornaya, and Microsoft Clarity) Privacy Policy

Airline stocks

Robert/Adobe American Airlines Logo on Mobile Phone

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

HockleyM3/peopleimages.com/Adobe business people and team discussion

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

iQoncept/Adobe Stock Market Initial Offering IPO

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.

Hedge funds

maurice norbert/Adobe hedge funds etf fund on screen

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

sommart /Adobe A magnifying glass inspecting small house models

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

Maks_Lab/Adobe a line of dice with markings

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.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today”
  • Create your account (important!) by answering a few simple questions
  • Start enjoying your discounts and perks!

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $15 the first year with auto-renewal.

Become an AARP member now

Foreign stocks

Africa Studio/Adobe Office employees at business meeting

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

Remigiusz/Adobe stacked silver bars

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

TebNad/Adobe Silhouette oil rigs and pumps

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.

Tesla and other EV stocks

Tada Images/Adobe The Tesla Fremont Factory

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

iamchamp/Adobe uptrend line candlestick stock market graph

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

onephoto/Adobe 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

Maksym Yemelyanov/Adobe newspaper and direction sign with investment options

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.

Masterworks Benefits

  • Invest in art like a millionaire for a relatively low cost
  • Art investments have outperformed the S&P 500 by over 131% for 26 years
  • Purchase shares of artwork by top artists
  • Hedge against inflation and diversify your portfolio