The Spanish giants brought in Gareth Bale for a world record €100 million last term and have since won the Copa del Rey.
They have also reached the Champions League final but look unlikely to win La Liga thanks to a 1-1 draw at Valladolid this week and Ancelotti says that patience, not money, is the key to success.
"Building a team and adapting to the characteristics of the players takes a long time," he said at the launch of the 'United 11' video game in Madrid.
"It's not natural - you have to work at it. It's necessary to know the players well and adapt them. No system guarantees you victory - all of them are valid.
"The answer is not always to sign the best. I wouldn't sign anyone because I have the players I like.
"The most important thing is to go for the same objective, to value Madrid more than anything else in this case. You win as a team, not as individuals."