Warren Buffett is arguably the greatest living investor. He went from buying his first stock at age 11 to owning multiple companies at the top of the Fortune 500 list.1 Buffett's personal wealth ballooned to over $80 billion as of October 2019, making him the third-wealthiest person on Earth at the time.2 Given his decades-long track record in the market, many investors want to learn how to pick stocks like Buffett. But for individual investors, including his own wife, Buffett offers a different investment strategy—and it's one that has nothing to do with picking individual stocks. Warren Buffett's strategy for picking winning stocks starts with evaluating a company based on his value investing philosophy. Buffett looks for companies that provide a good return on equity over many years, particularly when compared to rival companies in the same industry. When looking for a great company to invest in, Buffett also reviews a company's profit margins to ensure they are healthy and growing. Buffett focuses on companies that provide a unique product or service that gives them a competitive advantage; he also focuses on companies that are undervalued that he can purchase at a good discount.