Warren Edward Buffett is a famous American investor and businessman born in the city of Omaha in the year 1930.
In 2017, this entrepreneur was named the third richest person in the world with an estimated fortune of $ 87 billion, a success that made him the best entrepreneur of his generation and an investment guru. Being able to count on Buffet’s advice could certainly turn us into a big company in a relatively quick way.
Many of the phrases this businessman uttered in interviews or meetings have been widely studied by many people, who have tried to extract all the wisdom they contain to use it to their own advantage.
Great famous quotes from Warren Buffett
Most of today’s entrepreneurs have been inspired by this financial genius at some point in his career, maybe it’s time for you to check out the best quotes and tips from this great investor.
Below you can enjoy Warren Buffett’s 90 Best Quotes, A self-made man and an example of personal development.
1. The price is what you pay. Value is what you get.
The price of any object is set by us, paying what is asked of us. Their actual material value may differ significantly from this amount.
2. Rule number 1 never loses money. Rule number 2 never forgets rule number 1.
We must be very careful in the investments we make, each of which must be carefully considered.
3. Opportunities rarely present themselves. When it’s raining gold, turn off the bucket, not the dice.
In times of greater economic strength, we have to save and work hard, when the market goes down, it will be time to make our investments.
4. Whether it’s socks or stock, I like to buy quality products when they are at a discount.
Savings can be present in all aspects of our life, we should never waste our money.
5. Widespread fear is your friend as an investor because it is used to buy good business.
When people are generally afraid to liquidate their shares, it might be a good time to acquire them below their true cost.
6. We just try to be afraid when others are greedy and only be afraid when others are afraid.
As we see in this quote, investors are acting totally against the market. It is important to create our own savings, so that we can buy when the market is devalued.
7. It is better to buy a great business at a fair price than a fair business at a great price.
Buying at the right time will be vital in order to be able to make a profit, when we pay extra for a product, the chances of profitability disappear.
8. The best thing that happens to us is when a big company has temporary problems … We want to buy it when it’s at the bargaining table.
As can be seen, this investor has a predatory attitude, personally profiting from the economic problems of other companies.
9. The key to investing is not to assess how much an industry will affect the company or to what extent it will grow, but rather to determine the competitive advantage of a given company and, most importantly, sustainability. of this advantage.
In order to make a good investment, we need to study very carefully all the factors that go into it. Information will be vital in order to achieve our goal.
10. To the investor, a purchase price that is too high for the shares of a great company can offset the effects of a subsequent decade of good business development.
A bad investment can collapse our economy, we need to make sure we don’t pay anything above its price.
11. Other than safety, which means, don’t try to drive a 9,800 pound truck over a bridge that says it has a 10,000 pound capacity. Walk down the road a bit and find one that says: capacity: £ 15,000.
Thinking twice can eliminate more than one problem, so think carefully about the decisions you will need to make in the future.
12. Someone is sitting in the shade today because someone planted a tree a long time ago.
Investments need their time to mature, the money will not reach us overnight.
13. You cannot have a baby in a month, which leaves nine women pregnant.
It will always take time to be able to get our profitability, we have to be patient and wait for the hour to come.
14. If you are not willing to own a stock for ten years, don’t even think about owning it for ten minutes.
The stock market is very complicated and you should not play with it as if it has no future consequences.
15. When we own excellent business shares with excellent management, our preferred waiting period is eternal.
Owning a part of a successful business will always bring us great benefits. We should not get rid of this participation lightly.
16. An investor should act as if he has a lifetime decision card with only twenty moves.
Our actions as an investor have to be extremely calculated, we have to be very sure of what we are doing.
17. Since I don’t know of any way to reliably predict market movements, I recommend that you buy Berkshire stocks only if you plan to hold them for at least five years. Those looking for short-term gains should look elsewhere.
In his business, Buffett does not offer short-term profitability, he knows very well that this type of profitability is too volatile.
18. Buy a stock like you would buy a house. Understand it and love it in such a way that you are content to own it in the absence of any market.
We don’t have to buy anything that we may regret, our investments should always be viewed as possible future losses.
19. All you need to invest is pick the right stocks at the right time and stick with them as long as they are still good companies.
It’s easy to say but really tricky advice, buying stocks at the right time is quite an art.
20. Don’t take annual results too seriously. Instead, focus on four or five year averages.
We have to look at the longer term in our life, the most precious things will always take a long time to happen.
21. It is a terrible mistake for investors with long-term horizons, including pension funds, university funds and savings-conscious individuals, to measure their investment risk by the proportion of bonds. stocks in their portfolio.
The vast majority of people do not understand the stock market and act in it wrongly out of sheer ignorance.
22. I never try to make money on the stock market. I’m buying assuming they could close the market the next day and not reopen it for five years.
We should not invest an amount that does not affect us in our economy if we lose it. Anything over this amount is too risky.
23. If it is in a pot with chronic leaks, it is likely that the energy expended to change the vessel is more productive than the energy expended to repair the leaks.
When a business is unprofitable, the sooner it is abandoned, the sooner the economic problem can be overcome.
24. I will lose money for the business and I will understand it. I will lose a pinch of reputation for the company and be ruthless.
Reputation is very important, the trust that others place in us is due only to it.
25. The most important thing if you are in a hole is to stop digging.
A great quote that many of us should always remember, if you have debt don’t use your credit to pay it off.
26. It takes 20 years to build a reputation and five minutes to ruin it. If you think about it, you’ll do things differently.
Losing our reputation is losing a lifetime’s work, otherwise we will lose our customers and our income. Always take care of your reputation if you want to be more successful.
27. The stock market is a game without downtime. You don’t have to be interested in everything, you can bide your time.
Being patient will always benefit us in everything we do. Acting at the right time will be essential to be able to achieve our goal.
28. The most important quality for an investor is temperament, not intellect. You need a temper that doesn’t generate a lot of fun being with a crowd or against a crowd.
If we let ourselves be carried away by the market, we will never reap great benefits. By doing the opposite, we were able to achieve a much higher return.
29. You don’t have to be a rocket scientist. Investing is not a game where the guy with 160 IQ beats the guy with 130 IQ.
To invest successfully, we need to know the stock market deeply, because only by moving it forward can we get a higher return.
30. Wall Street is the only place people travel in Rolls Royces to get advice from those who take the subway.
Very curious aspect of the inner world of Wall Street, many of the people who work there really live very simple lives without much wealth.
31. Investing success does not correlate with IQ … what you need is temperament to control the impulses that make other people have trouble investing.
We must not get carried away by our impulses, the coldness of business is very important.
32. If the returns are 7 or 8 percent and you pay 1 percent for the fees, it makes a huge difference in the amount of money you will have in retirement.
If we save in the future, we can reap the benefits obtained, start planting your fruits of tomorrow today.
33. When the Wall Streeters manage billions of dollars at high rates, it is usually the managers of those making huge profits, not the customers.
The commission agent always gets the most out of your investments, we have to be very careful who manages our money.
34. The coming years will bring significant market declines and even panic, which will affect virtually all stocks. No one can tell you when these traumas will take place.
The economy is always subject to fluctuations, it never remains totally frozen in the same dynamic.
35. It is only when the tide goes out that you discover who swam naked.
Anyone who invests too much risk, in the end, will undoubtedly be harmed.
36. Predicting the rain doesn’t count, building the ark, yes.
If you think you know how the market will perform in the future, try to profit personally from this situation.
37. The best opportunity to deploy capital is when the going gets tough.
When prices fall is the best time to invest, financial crises can be the best time to multiply our profits.
38. I don’t mind Charlie (Munger) and me. In fact, we take advantage of such price drops if we have funds available to increase our positions.
The most difficult times financially are regularly taken advantage of by big investors like Warren Buffett.
39. We never want to rely on the kindness of strangers to fulfill tomorrow’s obligations. When I have to choose, I won’t even turn a night’s sleep into the opportunity to earn extra income.
Having control of our finances will give us full knowledge of where they are now, if we let other people handle them we can come out seriously hurt.
40. It has been a good time for investors: a climate of fear is their best friend. Those who only invest when commentators are bullish end up paying a high price for a meaningless guarantee.
In order to make great profits, we must be courageous with our investments, being guided by the opinions of third parties will lead us on the same path as the rest of the company.
41. Cash … is for a business like oxygen is for an individual: I never think about it when it’s there, and it’s the only thing that worries me when it’s away.
Having liquidity is essential in order to be able to invest, without it we will not be able to obtain the highest possible return. Loans should never be our source of cash.
42. Too Big to Fail is not an alternate position in Berkshire. Instead, we will always regulate our affairs in such a way that our own liquidity needs are eclipsed by our own liquidity.
Liquidity is vital in a company dedicated to investing, without it no financial transaction can be carried out.
43. If you like to spend six to eight hours a week investing, then do it. If you don’t, then the average dollar cost of index funds.
In order to be able to work professionally on the stock market, finance must be our passion. Otherwise, we had better look for another job.
44. The only thing I’m going to tell you is that the worst investment you can have is cash. Everybody says money is king and all that stuff. The money was worth less over time. But the bargains are worth it. More over time.
We don’t need to put all of our savings in cash because inflation could hurt us over time.
45. Buy a business because you want to own it, not because you want the shares to go up.
We have to invest in companies that give us greater security, we don’t have to buy anything that we are not quite comfortable with.
46. Charlie and I view the marketable Berkshire common stock as business interests and not as quote symbols to buy or sell based on their “chart” patterns, analyst “target” prices, or market opinions. ‘media experts.
His particular way of investing took him to the top of the economic firm, where no other investor had ever reached.
47. Never invest in a business that you don’t understand.
To be able to make a profit it is essential to know our own business deeply, we should never invest money in what we don’t know.
48. If you are not comfortable making a rough estimate of the asset’s future income, forget it and move on.
You never know how an investment will turn out over time, being overly optimistic can be counterproductive.
49. The risk comes from not knowing what you are doing.
Study the stock market first and be interested in how it works. Never invest randomly.
50. We want products where people want to kiss you instead of slapping you.
Buffet wanted to offer its clients the most advantageous financial products, to become the best group of investors in the world.
51. Buy businesses with a strong track record of profitability and a dominant business franchise.
Knowing the companies that you are buying from is absolutely essential if you want to make potential profits.
52. It is better to have a partial interest in the Hope Diamond than to own a whole artificial diamond.
Quality products will always be of great value because the quality we all know always sells.
53. One thing that might help would be to write down the reason why you are buying a stock before you buy it. Note: I am buying Microsoft for $ 300 billion because … I was forced to write this. It clarifies your mind and your discipline.
All our investments must be executed according to a predetermined plan, luck has no place in the world of the big investments.
54. In the business world, the rearview mirror is always brighter than the windshield.
In order to be able to predict the behavior of a stock, we need to know how it behaved throughout its trajectory in the market.
55. I insist that we spend a lot of time, almost every day, sitting down and thinking. It is very rare in American business.
Having our time to meditate and clarify our thoughts will make us much more effective investors.
56. I sit in my office and read all day.
Reading is a beneficial activity for everyone, thanks to it we can learn a lot of things that could be useful in the future.
57. People can better prepare for the economic future by investing in their own education. If you study hard and learn at an early age, you will be in the best position to secure your future.
Education may be the tool we need in the future, investing in a good education will always be extremely rewarding.
58. The most important investment you can make is in yourself.
The best investment is the one we make for our own well-being, never hesitate to invest in yourself.
59. Read 500 pages like this every day. This is how knowledge works. It accumulates, like compound interest. You can all do it, but I guarantee that few of you will.
Knowledge this will help us to be successful in the future, without it we will never achieve our goals.
60. In the twentieth century, the United States endured two world wars and other traumatic and costly military conflicts; the Depression; a dozen financial recessions and panics; oil crises; an influenza epidemic; and the resignation of a dishonored president. The Dow Jones fell from 66 to 11,497.
As Buffett tells us in this quote, the US market is very strong. During the twentieth century, it proved to be a great source of economic stability.
61. In the 54 years (Charlie Munger and I) that we have worked together, we have never given up on an attractive buy because of the macro or political environment, or the opinions of others. In fact, these issues never arise when we are making decisions.
Always act on your own opinion, others should never direct our actions. If you make a mistake, learn from it and correct it in the future.
62. Most people are interested in stocks while everyone else is. The time to take an interest in it – is when no one else is. You can’t buy what’s popular and do it right.
Stocks need to be bought – before they become popular, otherwise we’ll always pay an extra cost for them.
63. We have heard for a long time that the only value of stock market forecasters is to portray fortune-tellers. Even now Charlie and I still believe that short term market forecasts are toxic and should keep them locked away in a safe place away from children and also adults who behave like children in the market.
Forecasts are usually not correct in most cases, no one can know how a stock will perform let alone in the short term.
64. You are not right or wrong because the crowd does not agree with you. He is right because his data and his reasoning are correct.
The crowd doesn’t always have to be right, we have to learn to think for ourselves.
65. Don’t get caught up in what other people are doing. Being an opponent isn’t the key, but neither is it a crowd follower. You have to detach yourself emotionally.
Being consistent with our thoughts will help us find our way in life.
66. US companies, and therefore a basket of stocks, will surely be worth much more in the years to come.
Economies mature over time and new market shares are reaching. Emerging countries tend to have the most dynamic economies in the world, dramatically changing their purchasing power in a relatively short period of time.
67. For 240 years betting on the United States has been a terrible mistake and now is not the time to start.
The United States has always been at the head of the first world economies, being a safe haven for a large number of investors.
68. You must force yourself to consider opposing arguments. Especially when they challenge your dearest ideas.
Listen to everyone and make your own decisions, knowing how to listen can be very beneficial in the long run.
69. Speculation is more dangerous when it seems easier.
Speculation can be the engine of a possible economic bubble which will subsequently cause a major negative economic impact on a company.
70. After 25 years of buying and overseeing a wide variety of businesses, Charlie and I haven’t learned to solve tough business problems. What we have learned is to avoid them.
The best way to solve problems is to avoid them, that way we never have to deal with them directly.
71. Keep it simple and don’t get stuck in fences. When you are promised quick wins, answer with a quick “no”.
Quick profits don’t exist, third parties don’t have to take ownership of our savings using their tricks.
72. Investors must remember that emotions and expenses are their enemies.
Getting carried away by emotions can cause us serious problems. In business, serenity and calm are always essential.
73. What history teaches us is that people do not learn from history.
History teaches us what mistakes we should not make, many of us should be a little more interested in it. The mistakes of others can teach us not to make them.
74. Half of all coins will win on their first toss; but none of these winners expect future gains if success continues to be at stake.
We don’t have to gamble our savings on the lottery, investments can be very safe if we really know what we are doing.
75. He should only be able to assess companies within his circle of competence. The size of this circle is not very important; however, knowing your limits is vital.
We can invest in companies that we know, in which we don’t know it would be too risky to invest.
76. There is nothing wrong with an investor who knows nothing and realizes it. The problem is when you are an investor who doesn’t know anything but thinks you know something.
Ignorance is one of the most serious evils that belong to human beings, being aware of it is the first step to solving it.
77. Diversification is a safeguard against ignorance. It hardly makes sense to those who know what they are doing.
If we do not have great notions about financial education, diversification can be our great ally.
78. We believe that a policy of portfolio concentration can reduce risk if it increases, as it should, both the intensity with which an investor thinks about a company and the level of comfort he must feel with it. its economic characteristics before buying.
According to this great investor, concentrating all of our savings in one fund may be a better investment than you think.
79. I believe in giving my children enough so that they can do everything, but not so much that they can do nothing.
Buffett wants his children to know in the future how to make money for themselves, that way we can have a hunch that he won’t leave them a big legacy after his death.
80. If you buy things that you don’t need, you will soon have to sell the things that you need.
Buying what we don’t need can get very expensive in the future. We don’t have to spend our money lightly.
81. If you are smart you will earn a lot of money without borrow.
Borrowing will require us to pay interest, these surcharges will reduce the efficiency of our investments.
82. You can’t borrow 18% or 20% money and move on.
Falling into the arms of usurers will be very expensive. We should not apply for loans that require us to pay disproportionate interest.
83. Because if you mess up and the rates go down to 2%, which I don’t think they do, you pay for it. It is a one-way renegotiation. It is an incredibly attractive instrument for the owner and you have a one-sided bet.
Investments can go wrong and we must be prepared to face the consequences.
84. We have learned to produce many goods and services, but we have not learned how to get everyone to share the reward. The obligation of a society as prosperous as ours is to find out how no one is left too far behind.
We all have to work together with our grain of sand in society, the fees and taxes we pay guarantee a range of services that would otherwise be unthinkable.
85. If you are in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the remaining 99%.
The one who has accumulated the most wealth must also be the one who collaborates the most with his contribution. Buffett knows very well that he is a privileged total and that he must collaborate for it.
86. Just expect the next guy to pay more. And you just feel like you’re going to find this guy who will pay more if you think he’s going to find someone who will pay more. You don’t invest when you do this, you are speculating.
Speculation can go very badly for us, it can be a way to make money fast and maybe lose it too.
87. Bitcoin has no unique value at all.
Bitcoin is extremely volatile, it is now worth 10 and in a while it may be worth 5. It is not a safe bet in which to invest savings.
88. The difference between successful people and truly successful people is that truly successful people say “no” to almost everything.
Knowing when to say “no” can eliminate more than one problem in the future. We should not take unnecessary risks with our investments.
89. Stay away from it. It’s a mirage, basically … The idea that it has great intrinsic value is a joke in my opinion.
The value of almost any material good can change very quickly, so don’t assume that an investment will always be positive for us over time.
90. It’s better to spend time with better people than you. Choose a related behavior that is better than your own and you will deviate in that direction.
Knowing how to surround yourself with the right people will help us thrive in life. Be inspired by those who are more successful than you.