Warren Buffett Quotes


Warren Buffett Quotes

Quotes from the great Warren Buffett that are timeless and always provide myself with a solid grounding in investing for your enjoyment There’s something for every market here..

Warren Buffett Bio

“If calculus or algebra were required to be a great investor, I’d have to go back to delivering newspapers”

“Be fearful when others are greedy and greedy only when others are fearful.”

“Rule No. 1: never lose money; rule No. 2: don’t forget rule No. 1”

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

“I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.”

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.”

“The stock market is a no-called-strike game. You don’t have to swing at everything–you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, ‘Swing, you bum!'”

“Long ago, Ben Graham taught me that ‘Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”

“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”

“The best thing that happens to us is when a great company gets into temporary trouble…We want to buy them when they’re on the operating table.”

“None of this means, however, that a business or stock is an intelligent purchase simply because it is unpopular; a contrarian approach is just as foolish as a follow-the-crowd strategy. What’s required is thinking rather than polling. Unfortunately, Bertrand Russell’s observation about life in general applies with unusual force in the financial world: “Most men would rather die than think. Many do.”

“You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.”

“After all, you only find out who is swimming naked when the tide goes out.”

“Time is the friend of the wonderful business, the enemy of the mediocre.”

“I am a better investor because I am a businessman, and a better businessman because I am an investor.”

“In the business world, the rearview mirror is always clearer than the windshield.”

“Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”

“The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.”

“You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.”

“When Berkshire buys common stock, we approach the transaction as if we were buying into a private business.”

“You only have to do a very few things right in your life so long as you don’t do too many things wrong.”

“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

“Wide diversification is only required when investors do not understand what they are doing.”

“Stop trying to predict the direction of the stock market, the economy, interest rates, or elections.”

“An investor needs to do very few things right as long as he or she avoids big mistakes.”

“Someone is sitting in the shade today because someone planted a tree a long time ago.”

“Risk comes from not knowing what you’re doing.”

“I don’t look to jump over seven-foot bars; I look around for one-foot bars that I can step over.”

“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”

“If you are in a poker game and after 20 minutes you don’t know who the patsy is, then you’re the patsy.”

“To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing nothing of these. That, of course, is not the prevailing view at most business schools, whose finance curriculum tends to be dominated by such subjects. In our view, though, investment students need only two well-taught courses – How to Value a Business, and How to Think About Market Prices.”

“Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, ‘I can calculate the movement of the stars, but not the madness of men.’ If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases”

“Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.”

“Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.”

“The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities — that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future — will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.”

“There are all kinds of businesses that Charlie and I don’t understand, but that doesn’t cause us to stay up at night. It just means we go on to the next one, and that’s what the individual investor should do.”

“We don’t get paid for activity, just for being right. As to how long we’ll wait, we’ll wait indefinitely.”

“When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.”

“Always associate yourself with people who are better than you.”