Warren Edward Buffett, born August 30, 1930, is an American entrepreneur, investor, and philanthropist.
He is currently the chairman and CEO of Berkshire Hathaway. He is regarded as one of the most successful investors in the world.
Below are his 19 quotes on investing, investment risk management and life.
- “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.”
2. “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.”
3. “Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold.”
.4. “You’ve got to understand accounting. You’ve got to. That’s got to be like a language to you,”
5. “Price is what you pay. Value is what you get.”
6. “You cannot make a good deal with a bad person.”
7. “[Our] favorite holding period is forever. We are just the opposite of those who hurry to sell and book profits when companies perform well but who tenaciously hang on to businesses that disappoint. [American investor] Peter Lynch aptly likens such behavior to cutting the flowers and watering the weeds.”
8. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
9. “Uncertainty actually is the friend of the buyer of long-term values.”
10.. “As in the case with marriage, business acquisitions often deliver surprise after the ‘I do’s.’”
11. “Lose money for the firm, and I will be understanding; lose a shred of reputation for the firm, and I will be ruthless.”
12. “Don’t pass up something that’s attractive today because you think you will find something better tomorrow.”
13. “The important thing is to know what you know and know what you don’t know.”
14. “I have every possession I want. I have a lot of friends who have a lot more possessions. But in some cases, I feel the possession possesses them, rather than the other way around.”
15. “The best way to think about investments is to be in a room with no one else and to just think. If that doesn’t work, nothing else is going to work.”
16. “What we do is not beyond anyone else’s competence. I feel the same way about managing that I do about investing: It’s just not necessary to do extraordinary things to get extraordinary results.”
17. “Your best investment is yourself. There is nothing that compares to it.”
18. “We regard volatility as a measure of risk to be nuts. And the reason it’s used is because the people that are teaching want to talk about risk. And the truth is, they don’t know how to measure it in business. I mean, that would be part of our course on how to value a business. It would also be, how risky is the business? And we think about that in terms of every business we buy. And risk with us relates to — Well, it relates to several possibilities. One is the risk of permanent capital loss. And then the other risk is just an inadequate return on the kind of capital we put in. It does not relate to volatility at all.”
19. “Beware the investment activity that produces applause; the great moves are usually greeted by yawns.