Why do so many of us look to Warren Buffett quotes for investment advice?
Buffett, a financial genius, purchased his first stock when he was only 11 years old. When he was still a youngster, he utilised his savings to purchase and install pinball machines in local businesses.
He would go on to become one of the world’s most famous and wealthiest value investors, despite being rejected from Harvard (a choice that admissions staff must now regret).
Warren Buffet is now the CEO of Berkshire Hathaway, a former textile company that has been transformed into the world’s most valuable stock, valued at $316,700 a share in August 2020.
Indeed, “Warren Buffet quotes” is one of the most frequently Googled phrases in the internet wealth management sector today.
Warren Buffett quotations are popular because they are amusing, short, and easy to understand.
Warren Buffett has established himself as the modern financial world’s philosopher and high priest, being both funny and incisive, pithy and smart.
Content Outline
Best Warren Buffett Quotes To Inspire You
“The first rule is to never lose money. Rule No. 2: Never forget rule No. 1!” However, the stock market can price items incorrectly! You can frequently find fantastic businesses for sale.
“Keep in mind that the stock market is a maniac.”
This will ring true for everyone who follows financial news on a daily basis. Equity markets fluctuate radically from day to day, rallying and crashing on sentiment, and celebrating or vilifying the most insignificant data tidbits. It’s critical not to become engrossed in the chaos. Stick to your homework instead.
“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”
“The most important thing to do if you find yourself in a hole is to stop digging.”
“Beware the investment activity that produces applause; the great moves are usually greeted by yawns.”
“For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.”
“Risk comes from not knowing what you are doing.”
“Never invest in a business you cannot understand.”
“If returns are going to be 7 or 8 percent and you’re paying 1 percent for fees, that makes an enormous difference in how much money you’re going to have in retirement.”
“If returns are going to be 7 or 8 percent and you’re paying 1 percent for fees, that makes an enormous difference in how much money you’re going to have in retirement.”
“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.”
“On the margin of safety, which means, don’t try and drive a 9,800-pound truck over a bridge that says it’s, you know, capacity: 10,000 pounds. But go down the road a little bit and find one that says, capacity: 15,000 pounds.”
“If a business does well, the stock eventually follows.”
“For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.”
“Investing is as simple as picking good stocks at good times and sticking with them as long as they continue to be good companies.”
“I never try to profit from the stock market.” I buy on the expectation that the market will close the next day and will not reopen for five years.”
“Investors with long-term goals, such as pension funds, college endowments, and savings-minded individuals, make a fatal mistake by measuring their investment ‘risk’ by their portfolio’s bond-to-stock ratio.”
“It takes time, discipline, and patience to be a successful investor. Some things simply take time, no matter how great the talent or effort: You can’t get nine ladies pregnant in a month and have a baby.”
“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
“If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”
“Price is what you pay, value is what you get.”
“It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”
“The most important quality for an investor is temperament, not intellect.”
“The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.”
“Time is the friend of the wonderful company, the enemy of the mediocre.”
“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.”
“Success in investing doesn’t correlate with IQ … what you need is the temperament to control the urges that get other people into trouble in investing.”
“The stock market is a no-called-strike game. You don’t have to swing at everything — you can wait for your pitch.”
“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.”
“What counts for most people in investing vs saving is not how much they know, but rather how realistically they define what they don’t know.”
“There is nothing wrong with a ‘know nothing’ investor who realizes it. The problem is when you are a ‘know nothing’ investor but you think you know something.”
“Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in the absence of any market.”
“It’s better to have a partial interest in the Hope diamond than to own all of a rhinestone.”
“For 240 years it’s been a terrible mistake to bet against America, and now is no time to start.”
“American business — and consequently a basket of stocks — is virtually certain to be worth far more in the years ahead.”
“I won’t say if my candidate doesn’t win, and probably half the time they haven’t, I’m going to take my ball and go home.”
“Widespread fear is your friend as an investor because it serves up bargain purchases.”
“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
“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.”
“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.”
“The most common cause of low prices is pessimism—sometimes pervasive, sometimes specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It’s optimism that is the enemy of the rational buyer.”
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Conclusion:
Were you looking for Warren Buffett quotes in order to understand how to invest like him?
Warren is obviously a big fan of mine. In fact, Warren’s investing techniques form the foundation for all of the Rule #1 Investing ideas.
Start investing like the world’s top investment experts if you want to learn all of these ideas and start making smart investing decisions to reach financial freedom.
