Warren Buffett on Investing

byjohnwnewman

5.3K followers

8 years ago

Warren Buffett is considered the worlds greatest investor.

Personally I like the idea of using the cash flow from an online business to invest further in growth assets.

I think if you want to follow a philosophy of investing you could do a lot worse than following Warren Buffett's.

Here are some of his quotes about investing:

“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”

“Price is what you pay. Value is what you get.”

“Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.”

“Risk comes from not knowing what you’re doing.”

“Only when the tide goes out do you discover who’s been swimming naked.”

“You only have to do a very few things right in your life so long as you don’t do too many things wrong.”

“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.”

“Be fearful when others are greedy, and greedy when others are fearful.”

“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”

“Beware of geeks bearing formulas.”

“The investor of today does not profit from yesterday’s growth.”

“Why not invest your assets in the companies you really like? As Mae West said, ‘Too much of a good thing can be wonderful.”

“If a business does well, the stock eventually follows.”

“Wide diversification is only required when investors do not understand what they are doing.

“Never invest in a business you cannot understand.”

“Buy a business, don’t rent stocks.”

“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.”

“We have long felt that the only value of stock forecasters is to make fortune-tellers look good.”

“I am a better investor because I am a businessman and a better businessman because I am an investor.”

“The Stock Market is designed to transfer money from the Active to the Patient.”

“By periodically investing in an index fund, the know-nothing investors can actually outperform most investment professionals.”

“The stock market is a no-called-strike game. You don’t have to swing at everything – you can wait for your pitch.”

“For some reason, people take their cues from price action rather than from values. What doesn’t work is when you start doing things that you don’t understand or because they worked last week for somebody else. The dumbest reason in the world to buy a stock is because it’s going up.”

“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.”

“When asked how he became so successful in investing, Buffett answered: ‘we read hundreds and hundreds of annual reports every year.”

“The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price.”

“Diversification may preserve wealth, but concentration builds wealth.”

“I never buy anything unless I can fill out on a piece of paper my reasons. I may be wrong, but I would know the answer to that …I’m paying $32 billion today for the Coca Cola Company because… If you can’t answer that question, you shouldn’t buy it. If you can answer that question, and you do it a few times, you’ll make a lot of money.“

“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.“

“Never test the depth of river with both the feet.”

“Do a lot of reading.” – on how to determine the value of a business

To your success,

John W. Newman

Dream It, Believe It, Then Achieve It!