When people talk about Warren Buffett’s success, they often chalk it up to luck. “He invested in the right companies at the right time,” they say. But, as someone who has spent years studying Buffett’s strategies, I can tell you that his success isn’t just a lucky streak—it’s the result of relentless preparation and carefully timed moves. In investing, as in life, luck does play a role, but the real advantage comes from planning and the ability to act when the right opportunity arises.
One of the most common misconceptions I encounter is that building wealth is all about finding that “one lucky investment.” The truth is, sustainable success requires a strategy and the foresight to recognize potential. Take Buffett’s decision to invest in Apple in 2016. By then, Apple was already a giant, not exactly the type of company you’d expect to yield extraordinary returns. Yet, Buffett saw what others missed: Apple was transforming itself from a product company into a service powerhouse. Buffett’s $36 billion investment in Apple grew to be worth over $160 billion by early 2022. Was this luck? Not quite. It was a blend of recognizing potential, meticulous planning, and timing—a strategic approach to turning opportunities into long-term growth.
In my own career, I’ve learned that strategic planning is the foundation that turns chance into real gains. Years ago, a client approached me with a unique opportunity to invest in renewable energy. It was an exciting industry, but at the time, still filled with uncertainties. Instead of diving in immediately, we researched the landscape and watched the market evolve, understanding where the long-term value lay. When the moment was right, we invested with a clear vision of how this sector would grow. Today, that investment has not only yielded solid returns but has also become a cornerstone of the client’s portfolio. Like Buffett, we didn’t just rely on luck; we created it by combining preparation with the right timing.
Buffett often talks about maintaining what he calls a “circle of competence.” He advises investors to stick with industries and businesses they truly understand, which allows them to spot potential opportunities faster than others. Think about it: when you have in-depth knowledge of a field, you’re better equipped to detect shifts and trends that may elude the average investor. This strategy isn’t about waiting for random luck; it’s about building expertise so that when the right situation arises, you’re ready to take action.
Another example that comes to mind is Sara Blakely, founder of Spanx. Although not an investor like Buffett, Blakely exemplifies how preparation and strategic planning can create opportunities that look like luck. Blakely had no experience in fashion or retail, but she saw a gap in the market for comfortable shapewear. She spent years refining her product, researching fabric, and developing prototypes. When she finally launched Spanx, it seemed like an “overnight success,” but in reality, it was the result of years of meticulous preparation and foresight. Today, Spanx is a billion-dollar brand, and Blakely’s journey serves as a testament to the power of planning and seizing opportunities when they appear.
In advising clients, I often emphasize that preparation gives you the confidence to act decisively when the right investment appears. A diversified portfolio is important, but so is the agility to move on opportunities that fit your strategy. In one case, I worked with a family office that had their eye on tech startups. Instead of rushing in, we set up a structured approach, studying emerging trends and technologies over several months. When the time was right, they made targeted investments in companies aligned with their long-term goals, resulting in significant gains. To outside observers, it might have seemed lucky, but in reality, it was preparation that made those gains possible.
Buffett’s approach teaches us that luck, in its truest form, is simply the intersection of opportunity and preparation. He is known for saying, “The more you learn, the more you earn.” That philosophy of continual learning and preparation is why he’s ready to invest when others hesitate.
At its core, strategic planning is about having the foresight to understand where opportunities might emerge and the discipline to wait until the conditions align with your goals. It’s a lesson I pass on to clients and students : fortune favors the prepared, and in investing, as in life, preparation turns what seems like luck into a deliberate path to success. By planning carefully and acting strategically, we create our own luck—just as Buffett has done throughout his remarkable career.