I think it's imprudent for the average retail investor to take on and action Buffets advice in most contexts, except for his "just put your money in an index" advice.
Buffet could lose 99% of his net worth, and still be one of the top 5,000 or so wealthiest people in history. He could then lose 99% of that wealth, and still be comfortably inside of the top 1% of wealth holders. He could invest that 1% of 1% of his money in a broad index, and comfortably live off the hundreds of thousands of dollars in annual returns.
The mental model he has of the market is completely different to someone who is putting 1/5th of their $50k life-savings into investments. His appetite for risk and loss are entirely detached from most investors, and even many investment firms. Similarly, the range of opportunities open to Berkshire Hathaway is considerably different to the range of options available to a typical investor.
Buffet could lose 99% of his net worth, and still be one of the top 5,000 or so wealthiest people in history. He could then lose 99% of that wealth, and still be comfortably inside of the top 1% of wealth holders. He could invest that 1% of 1% of his money in a broad index, and comfortably live off the hundreds of thousands of dollars in annual returns.
The mental model he has of the market is completely different to someone who is putting 1/5th of their $50k life-savings into investments. His appetite for risk and loss are entirely detached from most investors, and even many investment firms. Similarly, the range of opportunities open to Berkshire Hathaway is considerably different to the range of options available to a typical investor.