Warren Buffett’s Greatest Hits
Warren Buffett’s best investing advice and inspirational quotes
Warren Buffett is making headlines once again for his honesty at the latest Berkshire Hathaway meeting. [Source] At the famous shareholder meeting, he shared two of his recent regrets; overlooking the opportunity to invest in Alphabet (Google) and Amazon. Regarding Alphabet, Buffett was simply, “unable to come to a conclusion.” He also likened Amazon to a “miracle” and said, “the problem is when I think something will be a miracle, I tend not to bet on it.” It takes a wise man to admit to his mistakes and Buffett has definitely proven himself to be one. Buffett’s words have provided guidance and inspiration to thousands of investors hoping to follow in his footsteps. We’ve compiled a list of the most inspiring quotes from the investing guru that are sure to boost your motivation.
- “You only have to do a very few things right in your life so long as you don’t do too many things wrong.”
- “Price is what you pay. Value is what you get.”
- “We select such investments on a long-term basis, weighing the same factors as would be involved in the purchase of 100% of an operating business: favorable long-term economic characteristics; competent and honest management; purchase price attractive when measured against the yardstick of value to a private owner; and an industry with which we are familiar and whose long-term business characteristics we feel competent to judge.”
- “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1”
- “I call investing the greatest business in the world … because you never have to swing. You stand at the plate, the pitcher throws you General Motors at 47! U.S. Steel at 39! and nobody calls a strike on you. There’s no penalty except opportunity lost. All day you wait for the pitch you like; then when the fielders are asleep, you step up and hit it.”
- "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."
- “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
- “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.”
- "Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can't produce a baby in one month by getting nine women pregnant."
- “Time is the friend of the wonderful company, the enemy of the mediocre.”
- "I don't look to jump over seven-foot bars; I look around for one-foot bars that I can step over."
- "In the short term, the market is a popularity contest. In the long term, the market is a weighing machine."
- “I insist on a lot of time being spent, almost every day, to just sit and think. That is very uncommon in American business. I read and think. So I do more reading and thinking, and make less impulse decisions than most people in business.”
- "Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble."
- “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 fly epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”
- "Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing."
- "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value."
- “When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
- "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."
- "I am a better investor because I am a businessman, and a better businessman because I am an investor."
- “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 far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
- “You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of ideas come along, and I’ve had long dry spells. If I get an idea next week, I’ll do something. If not, I won’t do a damn thing.”