In this article we are going to present our list of the 30 Best Quotes from Warren Buffett. Click to skip ahead and jump to the 10 Best Quotes from Warren Buffett.
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It is not easy being among the richest people in the world, even if just for a year or two. It is incredible to remain at the top for a few years, and almost unfathomable to stay there for decades. Warren Buffett, the chairman and CEO of Berkshire Hathaway Inc. (NYSE:BRK.A), is probably the most famous investor in the world and will likely keep this title for years to come. The legend was a fan of investing in stocks even at a young age, even borrowing the book ‘One Thousand Ways to Make $1000’ not when he was in his twenties or his teens, but at the tender age of seven. In fact, he kept trying entrepreneurial ventures, one after another in childhood, from selling Coca Cola (NYSE:KO) bottles and chewing gum to magazines. He even invested in stocks when he was just a child, which was the start of one of the most successful investors in history.
However, it was after he became the CEO and majority shareholder of Berkshire Hathaway (NYSE:BRK.A), before firing the owner of the company and assuming control. Through the company, he has invested in dozens of major companies through the decades and currently has holdings in American Express Company (NYSE:AXP), Bank of America Corp (NYSE:BAC), and Apple Inc (NASDAQ:AAPL), among others. The company turned the millionaire into a billionaire many times over and Warren Buffet is now currently worth more than $103 billion, one of just five centibillionaires in the entire world.
Buffett is a value investor and prefers to hold his positions long-term. Berkshire Hathaway’s largest position is currently represented by Apple Inc (NASDAQ:AAPL), in which the fund has been building a stake since 2016 and currently holds more than $100 billion worth of stock. In Bank of America Corp (NYSE:BAC), and Kraft Heinz Company (NASDAQ:KHC), Buffett has ben holding shares for much longer. For example, Bank of America Corp (NYSE:BAC), which currently is the second-largest holding in Berkshire’s portfolio, has been a favorite of Buffett’s since at least 2007, while in American Express Company (NYSE:AXP), Buffett’s been invested since at least 2001.
Currently, Berkshire owns $39 billion worth of Bank of America’s shares and $21 billion worth of American Express, both of which pale in comparison with the investment in Apple. This is interesting because Buffett’s has been staying away from Apple Inc (NASDAQ:AAPL) and technology stocks in general. However, now Apple is not only Berkshire’s largest holding, but also Buffett’s favorite company, calling it “[…] probably the best business I know in the world,” during an interview.
Overall, during his 54 years at the top of the investing game, Buffet has provided around 20.5% annualized return to his shareholders, which is a magnificent achievement. If you had invested just $1,000 when Buffet took charge, you would now have $24.7 million against that investment! Over the years and decades, Buffett has also provided us with a log of nuggets of wisdom, a lot of them pertaining to finance and investment, but also valuable as advice for your life. So without further ado, let’s take a look at some of the best quotes from Warren Buffett over the past many years, with the quotes being selected from Business Insider, Rule One Investing and Fool.
- “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years”
You need to be focused in your thinking and reasons for investment.
- “Success in investing doesn’t correlate with IQ. What you need is the temperament to control the urges that get other people into trouble in investing.”
Investing can often feel like gambling, and controlling those urges and investing with your mind is what differentiates successful investors from the rest.
- “Only when the tide goes out do you discover who’s been swimming naked.”
Things might seem good for a company, but if the company is overleveraged, it may soon be left completely exposed when fortuitous circumstances decline.
- “Predicting rain doesn’t count, building the ark does.”
Simply predicting an event doesn’t matter; taking steps to manage the event when it occurs is what counts.
- “Too-big-to-fail is not a fallback position at Berkshire. Instead, we will always arrange our affairs so that any requirements for cash we may conceivably have will be dwarfed by our own liquidity.”
Many banks were bailed out for billions of dollars by the federal government in the aftermath of the 2008 Great Recession, and this is something that Buffett does not want Berkshire Hathaway to face.
- “The one thing I will tell you is the worst investment you can have is cash. Everybody is talking about cash being king and all that sort of thing. Cash is going to become worth less over time. But good businesses are going to become worth more over time.”
As inflation occurs, the value of cash decreases which is why it is important to invest the money you have.
- “Never invest in a business you cannot understand.”
This is why Warren Buffett doesn’t invest a lot in tech companies or biotech companies, as he only wants to invest in businesses that he does understand.
- “We want products where people feel like kissing you instead of slapping you.”
What I take this to mean is that the products that a company provides should be understood and wanted by the general population.
- “It’s better to have a partial interest in the Hope diamond than to own all of a rhinestone.”
Basically, what this means is that it is better to be a part of a sure thing rather than own something which is not likely to be as successful.
- “I just sit in my office and read all day.”
The importance of reading is something which the current generation seems to have missed out on.
- “I insist on a lot of time being spent, almost every day, to just sit and think. That is very uncommon in American business.”
While it’s not necessarily about investing, it’s still one of the best quotes from Warren Buffett. The billionaire investor has reiterated his love for reading and thinking, which is almost unfathomable among the fast paced business in America today.
- “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 flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”
This quote from Buffett showcases his belief in the strength of the United States and how it has been able to overcome numerous challenges in just the last century. This doesn’t even mention the pandemic we are currently undergoing as the quote was before the pandemic struck.
- “We’ve long felt that the only value of stock forecasters is to make fortune tellers look good. Even now, Charlie and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children.”
This Buffet’s investments aren’t based on day gains but are long positions, based on the value of the company. He is completely against short term forecasts and day traders, and this will be repeated in some of the other best quotes from Warren Buffett as well.
- “For 240 years it’s been a terrible mistake to bet against America, and now is no time to start.”
Buffett does often say patriotic things, which I was a bit surprised to learn, and one of them included this quote. Basically, over the past quarter of a millennium, America has grown from strength to strength and while it may be challenged by other powers in recent years, it would be very risky to bet against the United States.
- “After 25 years of buying and supervising a great variety of businesses, Charlie and I have not learned how to solve difficult business problems. What we have learned is to avoid them.”
The simplest way to not face business problems is to simply avoid getting entangled in them. If a company seems complex and facing problems, then simply don’t invest in it. Quite a smart advice from Buffett.
- “Speculation is most dangerous when it looks easiest.”
Sometimes, speculation may not seem as such and looks like a sure thing. When that happens, run in the other direction.
- “Keep things simple and don’t swing for the fences. When promised quick profits, respond with a quick “no”.”
Buffett doesn’t believe in quick get rich schemes, and wants you to avoid them as well.
- What we learn from history is that people don’t learn from history.”
Another take on the classic quote pertaining to those who don’t learn from history are bound to repeat it, Berkshire Hathaway CEO believes that what he’s seen from history is that no one learns from it, and hence, will be bound to repeat it as well.
- If they’re trying to buy and sell stocks, and worry when they go down a little bit and think they should maybe sell them when they go up, they’re not going to have very good results.”
For Buffett, short term investors or day traders are not worth his time.
- “I always knew I was going to be rich,” he said. “I don’t think I ever doubted it for a minute.”
This is confidence from the great man, and he is one of the few who can say it without being called arrogant.
In this article we are going to list the 10 Best Quotes from Warren Buffett. For a detailed coverage of this topic and a more comprehensive list please head on over to the 30 Best Quotes from Warren Buffett.
- “Someone’s sitting in the shade today because someone planted a tree a long time ago.”
Basically, what this means is that the fruits of your labor might take a long time, and may provide benefits to others in the long run.
- “You only have to do a very few things right in your life so long as you don’t do too many things wrong.”
This does seem like a privileged thing to say, and one which may not be applicable to everyone equally.
- “The perfect amount to leave to your kids, he told Fortune in 1986, is “enough money so that they would feel they could do anything, but not so much that they could do nothing.”
One of the best quotes from Warren Buffet pertains to how much money the extremely rich people should leave for their children. According to the investor, the amount should be enough that they can pursue whatever they want, unburdened by the requirement to earn enough money to make basic necessities meet. However, it shouldn’t be so high that it ruins the lives of the children.
- “It takes 20 years to build a reputation and 5 minutes to ruin it.”
Whenever someone establishes a business, it takes an incredibly long time to build a loyal customer base and even then, you only get loyal customers after painstaking efforts. However, just one misstep is all it takes to ruin this reputation and lose customers. Hence, it is imperative for businesses to ensure that they don’t make any missteps.
- “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
The best time to buy a stock is always when it has been undervalued by the market as the potential gains are significantly higher.
- “The difference between successful people and really successful people is that really successful people say no to almost everything.”
To be really successful, you need to be able to possess excellent decision making skills. While saying yes can often provide new challenges and new opportunities, knowing when to say no is also incredibly important, as is knowing your self-worth.
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- “In the business world, the rear-view mirror is always clearer than the windshield”.
It may be true for life as well. Hindsight is a wonderful thing, and you can always question your past decisions after they play out, but it is important to remember that there is always an element of risk involved in finance.
- “Cryptocurrencies will come to bad endings”.
Cryptocurrencies are all the age nowadays, and 2021 has been the year of the cryptocurrency for now, with Bitcoin, Ethereum and Dogecoin all registering record highs. However, Buffett is still not a fan and doesn’t believe there is any intrinsic value to cryptocurrency and hence, will fail one day.
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- “If you’re in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%.”
Buffett has pledged to donate 99% of his wealth after his death, and is known for his philanthropic endeavors.
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- “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.”
Topping the list of the 30 best quotes from Warren Buffett, is the importance of ensuring that you never lose money.
Article by Ty Haqqi, Insider Monkey
Disclosure: None. 30 best quotes from Warren Buffett is originally published at Insider Monkey.
