Warren Buffett’s 20-Punch Rule: A Smarter Path to Becoming a Crorepati

What if you could only make 20 investment decisions in your entire life? That’s the thinking behind Warren Buffett’s famous “20-Punch Rule” — a principle that could help you build serious wealth, possibly even become a crorepati (millionaire).

Also Read: Warren Buffett’s Best And Worst Investments: The Key Moves That Shaped His Legendary Career | Republic World

What is the concept all about?

Buffett had once said, “I could improve your ultimate financial welfare by giving you a ticket with only 20 slots in it so that you had 20 punches — representing all the investments that you got to make in a lifetime. And once you'd punch through the card, you couldn't make any more investments at all."

According to Warren Buffett, just imagine that you have a punch card that has only 20 slots. Each time you make an investment, one slot gets punched. Once you have exhausted all 20, your investments are done.
With the '20-slot' rule, Warren Buffett underscores the importance of selective investing. The method urges investors to think deeply about their 20 lifetime investments. According to him, this enables you to invest carefully, with conviction — not just chase quick gains.

"You'd really have to think carefully about what you did, and you'd be forced to load up on what you really think about. So you'd do much better," added Buffett.

Buffett is of the firm view that “fewer”, “smarter” investment choices lead to better long-term results. And he’s proved it. His biggest successes — in companies like Coca-Cola and Apple — came from holding a few high-quality stocks for decades.

Why it matters for Indian investors

In today’s world of trading apps and daily stock tips, this rule is a reminder to make your investments prudently. For someone eyeing to achieve the Rs 1 crore mark, focusing on long-term quality — rather than jumping from stock to stock — can make all the difference.

Buffett believes that the 20-Punch Rule isn’t about the number. It’s about mindset: Invest like each decision really counts.