Warren Buffett’s quotes- Part 2
Read more: Warren Buffett’s quotes- Part 1
Warren Edward Buffett (born August 30, 1930) is an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world] and has a net worth of over $102.1 billion as of December 2021, making him the world’s tenth-wealthiest person.
“In the end, alchemy, whether it is metallurgical or financial, fails. A base business can not be transformed into a golden business by tricks of accounting or capital structure. The man claiming to be a financial alchemist may become rich. But gullible investors rather than business achievements will usually be the source of his wealth.” – Warren Buffett
“I’ve learned mainly by reading myself. So I don’t think I have any original ideas. Certainly, I talk about reading Graham. I’ve read Phil Fisher. So I’ve gotten a lot of my ideas from reading. You can learn a lot from other people. In fact, I think if you learn basically from other people, you don’t have to get too many new ideas on your own. You can just apply the best of what you see.” – Warren Buffett
“That would be nice if [people] stuck [treasury bills] all under a mattress, but they got to buy something with them. Sometimes they buy a treasury note, sometimes they set up sovereign wealth funds. They can do all kinds of things. They can buy our companies here. As long as we consume more than we produce, and we trade away little pieces of the country daily, they’re going to own something. Now, they can’t run from American assets. I mean every day the rest of the world is going to have about two billion more of American assets than we have, as long as they sell us these goods.” – Warren Buffett
“The .350 hitter expects, and also deserves, a big payoff for his performance – even if he plays for a cellar-dwelling team. And a .150 hitter should get no reward – even if he plays for a pennant winner.” – Warren Buffett
“Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value.” – Warren Buffett
“There are certain things that cannot be adequately explained to a virgin either by words or pictures.” – Warren Buffett
“A Company should be viewed as an unfolding movie, not as a still photograph” – Warren Buffett
“I have no use whatsoever for projections or forecasts. They create an illusion of apparent precision. The more meticulous they are, the more concerned you should be. We never look at projections, but we care very much about, and look very deeply at, track records. If a company has a lousy track record, but a very bright future, we will miss the opportunity.” – Warren Buffett
“The optimum portfolio depends on the various expectations of choices available and the degree of variance in performance which is tolerable. The greater the number of selections, the less will be the average year-to-year variation in actual versus expected results. Also, the lower will be the expected results, assuming different choices have different expectations of performance.” – Warren Buffett
“As an investor with small capital, one should prefer businesses that have high returns on capital and that require little incremental investment to grow.” – Warren Buffett
“When investing, pessimism is your friend, euphoria the enemy.” – Warren Buffett
“It is more important to say “no” to an opportunity, than to say “yes”.” – Warren Buffett
“The trick is, when there is nothing to do, do nothing.” – Warren Buffett
“People should always know better.” – Warren Buffett
“My favorite time frame for holding a stock is forever.” – Warren Buffett
“When Berkshire Hathaway laid out three billion dollars for GE today, we didn’t spend it, we invested it. When the Federal government buys the mortgages, they’re not spending it, they’re investing it. Now, they’re investing it in distress type assets but they’re buying them at distress prices if they buy them at market. It’s the kind of stuff I love to do. I just don’t have 700 million. Maybe we could go in it together.” – Warren Buffett
“My wealth has come from a combination of living in America, some lucky genes, and compound interest.” – Warren Buffett
“If you want your business to survive for 100 years, you’ve got to make it through every single day for 100 years. It’s not enough to do it 99.9% of the time.” – Warren Buffett
“If you buy the things you don’t need, you will soon be selling the things that you need.” – Warren Buffett
“Activity is the enemy of investment returns.” – Warren Buffett
“With housing it’s something even more dramatic than that, because most people aspire to own their own home.If you really think that houses prices are going to go up next year and the year after, you feel if I don’t buy it this year, I’m going to have to buy it next year.That’s not true of an Internet stock. But it’s true of a home.” – Warren Buffett
“Nothing sedates rationality like large doses of effortless money.” – Warren Buffett
“Anything can happen in stock markets and you ought to conduct your affairs so that if the most extraordinary events happen, that you’re still around to play the next day.” – Warren Buffett
“Time is the friend of the wonderful business. It’s the enemy of the lousy business. If you’re in a lousy business for a long time, you’re going to get a lousy result, even if you buy it cheap. If you’re in a wonderful business for a long time, even if you pay a little too much going in, you’re going to get a wonderful result if you stay in a long time.” – Warren Buffett
“People who watch their weight, golf scores, and fuel bills seem to shun quantitative evaluation of their investment management skills although it involves the most important client in the world-themselves.” – Warren Buffett
“I don’t want to be on the other side of the table from the customer. I was never selling anything that I didn’t believe in myself or use myself.” – Warren Buffett
“Money will always flow toward opportunity, and there is an abundance of that in America.” – Warren Buffett
“Two rules: 1. Preserve the principal 2. When in doubt, see Rule #1.” – Warren Buffett
“Asset-heavy businesses generally earn low rates of return – rates that often barely provide enough capital to fund the inflationary needs of the existing business, with nothing left over for real growth, for distribution to owners, or for acquisition of new businesses” – Warren Buffett
“You can’t stand to see your neighbor getting rich. You know you’re smarter than he is and he’s doing these things and he’s getting rich.” – Warren Buffett
“A lot of great fortunes in the world have been made by owning a single wonderful business. If you understand the business, you don’t need to own very many of them.” – Warren Buffett
“When forced to choose, I will not trade even a night’s sleep for the chance of extra profits.” – Warren Buffett
“An irresistable footnote: in 1971, pension fund managers invested a record 122% of net funds available in equities – at full prices they couldn’t buy enough of them. In 1974, after the bottom had fallen out, they committed a then record low of 21% to stocks.” – Warren Buffett
“Shares are not mere pieces of paper. They represent part ownership of a business. So, when contemplating an investment, think like a prospective owner.” – Warren Buffett
“If you hit a hole in one every hole, you wouldn’t play golf for very long.” – Warren Buffett
“Problems in a company are like cockroaches in the kitchen. You will never find just one” – Warren Buffett
“The key to success is emotional stability.” – Warren Buffett
“If you’re an investor, you’re looking on what the asset is going to do, if you’re a speculator, you’re commonly focusing on what the price of the object is going to do, and that’s not our game.” – Warren Buffett
“Bad terminology is the enemy of good thinking.” – Warren Buffett
“It is to our advantage to have securities do nothing price-wise for months, or perhaps years, while we are buying them.” – Warren Buffett
“First come the innovators, then come the imitators, then come the idiots.” – Warren Buffett
“You can be sure that over the next 10 years, you’ll see something that you did not think was possible.” – Warren Buffett
“Invest in as much of yourself as you can, you are your own biggest asset by far.” – Warren Buffett
“If you invested in a very low cost index fund – where you don’t put the money in at one time, but average in over 10 years -you’ll do better than 90% of people who start investing at the same time.” – Warren Buffett
“I’m always interested in understanding the math of things and understanding as much as I can about all aspects of business. And what I learn today may be useful to me two years from now. That’s really the wonderful thing about investments is your knowledge is cumulative.” – Warren Buffett
“The (stock) market,like the Lord, helps those who help themselves. But, unlike the Lord, the market does not forgive those who know not what they do.” – Warren Buffett
“I can’t promise results, but I can promise a common destiny.” – Warren Buffett
“I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.” – Warren Buffett
“Cash, though, is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent… When bills come due, only cash is legal tender. Don’t leave home without it.” – Warren Buffett
“Knowing what to leave out is just as important as knowing what to focus on.” – Warren Buffett
“Risk comes from not knowing what you are doing so wide diversification is only required when investors are ignorant. You only have to do a very few things in your life so long as you don’t do too many things wrong.” – Warren Buffett
“An investor should ordinarily hold a small piece of an outstanding business with the same tenacity that an owner would exhibit if he owned all of that business.” – Warren Buffett
“The best education you can get is investing in yourself, and that doesn’t mean college or university.” – Warren Buffett
“If we have a strength, it is in recognizing when we are operating well within our circle of competence and when we are approaching the perimeter.” – Warren Buffett
“It irritates the hell out of me but you can’t buy love.” – Warren Buffett
“People always ask me where they should go to work, and I always tell them to go to work for whom they admire the most.” – Warren Buffett
“Managers that always promise to ‘make the numbers’ will at some point be tempted to make up the numbers.” – Warren Buffett
“Only when the tide goes out do you discover who’s been swimming naked.” – Warren Buffett
“Other guys read Playboy. I read annual reports.” – Warren Buffett
“It’s got to be the best intellectual exercise out there. You’re seeing through new situations every ten minutes. In the stock market you don’t base your decisions on what the market is doing, but on what you think is rational. Bridge is about weighing gain/loss ratios. You’re doing calculations all the time.” – Warren Buffett
“Ignore the stock market, ignore the economy, and buy a business you understand.” – Warren Buffett
“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.” – Warren Buffett
“It’s nice to have a lot of money, but you know, you don’t want to keep it around forever. I prefer buying things. Otherwise, it’s a little like saving sex for your old age.” – Warren Buffett
“Investment ideas, like women are often more exciting than punctual.” – Warren Buffett
“You can’t make a good deal with a bad person.” – Warren Buffett
“We always see shifts in employment. If you think about it, if you go back to 1800, it took 80 percent of the labor force to produce enough food for the country. Now it takes less than 3 percent. Well, the truth is that market systems move people around.” – Warren Buffett
“You don’t need to be an expert in order to achieve satisfactory investment returns. But if you aren’t, you must recognize your limitations and follow a course certain to work reasonably well. Keep things simple and don’t swing for the fences.” – Warren Buffett
“Confidence is key. You’re not going to put your money – you’re not going to leave your money with me unless you’re confident I’m going to give it back to you.” – Warren Buffett
“The best asset is your own self. You can become to an enormous degree the person you want to be” – Warren Buffett
“I am a better investor because I am a businessman, and a better businessman because I am no investor.” – Warren Buffett
“You should look at stocks as small pieces of business.” – Warren Buffett
“If you don’t make mistakes you can’t make decisions.” – Warren Buffett
“If you can’t communicate and talk to other people and get across your ideas, you’re giving up your potential.” – Warren Buffett
“But 300 million Americans, their lending institutions, their government, their media, all believed that house prices were going to go up consistently. And that got billed into a $20 trillion residential home market. Lending was done based on it, and everybody did a lot of foolish things.” – Warren Buffett
“Traditional wisdom is long on tradition and short on wisdom.” – Warren Buffett
“Banking is very good business if you don’t do anything dumb.” – Warren Buffett
“In looking for people to hire, look for three qualities: integrity, intelligence and energy. And if they don’t have the first, the other two will kill you.” – Warren Buffett
“After 25 years of buying and supervising a great variety of businesses, Charlie [Munger] and I have not learned how to solve difficult business problems. What we have learned is to avoid them. To the extent we have been successful, it is because we have concentrated on identifying one-foot hurdles that we could step over rather than because we acquired any ability to clear seven-footers.” – Warren Buffett
“You can’t produce a baby in one month by getting nine women pregnant.” – Warren Buffett
“When I take a look at a company’s annual report, if I don’t understand it, they don’t want me to understand it.” – Warren Buffett
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