The 90 best phrases of Warren Buffett
Sep 14, 2021
Warren Edward Buffett is a famous American investor and businessman Born in the city of Omaha during the year 1930.
In 2017 this businessman was named the third richest person in the world with an estimated fortune of 87,000 million dollars, an achievement that made him the best businessman of his generation and a true guru of investments. Being able to count on Buffet's advice could undoubtedly turn us into great entrepreneurs relatively quickly.
Many of the phrases that this businessman has said during interviews or meetings have been widely studied by many people, who have tried to extract from them all the wisdom they contained in order to take advantage of it in their own benefit.
- It may interest you: "The 45 best phrases about Economics and Finance"
Great famous quotes from Warren Buffett
Most of today's entrepreneurs have been inspired by this financial genius at one point or another in their life. professional career, it may be time for you to discover the best phrases and tips of this great investor.
Below you can enjoy the 90 best phrases of Warren Buffett, a self-made man and an example of personal improvement.
1. The price is what you pay. Value is what you get.
The price of any object is set by us, paying for it what they ask of us. Your actual material value may differ greatly from that amount.
2. Rule number 1 never lose money. Rule number 2 never forget rule number 1.
We must be very careful with the investments we make, each of them must be meticulously studied.
3. Opportunities happen infrequently. When it rains gold, turn off the bucket, not the thimble.
In the moments of greatest economic strength we must save and work hard, when the market falls it will be time to make our investments.
4. Whether we are talking about socks or stock, I like to buy quality products when they are on sale.
Saving can be present in all aspects of our life, we should never waste our money.
5. Generalized fear is your friend as an investor because it serves to buy bargains.
When people are afraid they tend to sell off their stocks, perhaps that is a good time to purchase them below their true cost.
6. We simply try to be afraid when others are greedy and to be greedy only when others are afraid.
As we see in this quote, investors act totally against the market. It is important to create our own savings, to be able to buy when the market is devalued.
7. It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
Buying at the right time will be vital to be able to obtain a profit, when we pay an extra cost for any product the possibilities of profitability disappear.
8. The best thing that happens to us is when a large company gets into temporary trouble... We want to buy them when they are on the operating table.
As we can see, this investor has a predatory attitude, taking personal benefit from the economic problems of other companies.
9. The key to investing is not evaluating how much an industry will affect society or how much it will grow, but more well to determine the competitive advantage of a given company and, above all, the durability of that advantage.
In order to make a correct investment, we must study very well all the factors that concern it. The information will be vital to be able to fulfill our objective.
10. For the investor, a purchase price that is too high for the shares of an excellent company can undo the effects of a subsequent decade of favorable business developments.
A bad investment can sink our economy, we must make sure that we do not pay anything above its price.
11. In the margin of 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. Go down the road a bit and find one that says: capacity: 15,000 pounds.
Thinking things twice can free us from more than one problem, think carefully about the decisions that you will have to make in the future.
12. Someone is sitting in the shade today because someone planted a tree a long time ago.
Investments need time to mature, the money will not come to us overnight.
13. You cannot have a baby in a month by making nine women pregnant.
Time will always be necessary to obtain our profitability, we must be patient and wait for the moment to come.
14. If you're 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 we should not play with it as if it has no future consequences.
15. When we own outstanding business portions with outstanding managements, our favorite waiting period is forever.
Owning a portion of a successful business will always bring us great benefits. We should not get rid of such participation lightly.
16. An investor should act like they have a decision card for life with just twenty strokes.
Our actions as an investor must be highly calculated, we must be very sure of what we do.
17. Since I don't know of any way to reliably predict market movements, I recommend that you buy Berkshire shares only if you expect to hold them for at least five years. Those looking for short-term gains should look elsewhere.
In his company, Buffett does not offer short-term profitability, he knows very well that this type of profitability is too volatile.
18. Buy a stock the way you would buy a house. Understand and like it in such a way that you are content to own it in the absence of any market.
We should not buy anything that we can regret, our investments should always be seen as possible future losses.
19. All you have to invest in is picking good stocks in good times and sticking with them as long as they remain good companies.
This is advice that is easy to say but really complicated to do, buying stocks at the right time is an art.
20. Don't take yearly results too seriously. Instead, focus on averages of four or five years.
We must look more long-term in our life, the most valuable things will always take time to arrive.
21. It is a terrible mistake for investors with long-term horizons, including pension funds, funds college students and savings-minded individuals, measure their investment risk by the ratio of bonds to stocks. your wallet.
The vast majority of people do not understand the stock market and act wrongly in it by mere ignorance.
22. I never try to make money on the stock market. I buy under the assumption that they could close the market the next day and not reopen it for five years.
We should only invest an amount that does not affect our economy if we lose it. Anything over that amount is too risky.
23. If you find yourself in a boat with chronic leaks, the energy devoted to changing the boat is likely to be more productive than the energy devoted to repairing the leaks.
When a company is not profitable, the sooner it is abandoned, the sooner the economic problem can be overcome.
24. I will lose money for the company and I will understand. I will lose a shred of reputation for the company and be ruthless.
Reputation is very important, the trust that others place in us is due exclusively to it.
25. The most important thing if you find yourself in a hole is to stop digging.
A great quote that many of us should always remember, if you have debts, do not use your credit to pay them.
26. It takes 20 years to build a reputation and five minutes to ruin it. If you think about it, you will do things differently.
Losing our reputation is losing a lifetime's work, without it 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 with no downtime. You don't have to be interested in everything, you can bide your time.
Being patient will always be beneficial to us in everything we do. Acting at the right time will be essential to be able to meet our objective.
28. The most important quality for an investor is temperament, not intellect. You need a temperament that does not bring great pleasure in being with the crowd or against the crowd.
If we get carried away by the market, we will never get great benefits. By acting in reverse to it, we are able to obtain a much higher profitability.
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 must have a deep understanding of the stock market, because only by anticipating it will we achieve greater profitability.
30. Wall Street is the only place people ride in a Rolls Royce to get advice from those who take the subway.
A very curious aspect about the inner world of Wall Street, many of the people who work there actually live very simple lives and without great wealth.
31. Investment success does not correlate with IQ... what you need is the temperament to control the impulses that make other people have trouble investing.
We must not get carried away by our impulses, coldness in business is very important.
32. If the returns are going to be 7 or 8 percent and you pay 1 percent for fees, that makes a huge difference in how much money you will have in retirement.
If we save in the future we can enjoy the benefits obtained, start sowing your fruits of tomorrow today.
33. When Wall Streeters manages trillions of dollars by charging high fees, it will generally be the managers who will reap huge profits, not the customers.
The commission agent always gets a great deal out of your investments, we must be very careful with who manages our money.
34. The coming years will cause major market downturns, even panic, which will affect virtually all stocks. No one can tell you when these traumas will occur.
The economy always undergoes fluctuations, it is never totally fixed in the same dynamic.
35. Only when the tide goes out do you find out who has been swimming naked.
He who invests risking too much, in the end will undoubtedly be harmed.
36. Predicting the rain doesn't count, building the ark does.
If you think you know how the market will act in the future, try to take advantage of this situation personally.
37. The best opportunity to deploy capital is when things are going down.
When prices fall is the best time to invest, financial crises can be the best time to multiply our profits.
38. This doesn't bother Charlie (Munger) and me. In fact, we enjoy such price drops if we have funds available to increase our positions.
The moments of greatest financial difficulty are assiduously taken advantage of by large investors like Warren Buffett.
39. We never want to count on the kindness of strangers to meet tomorrow's obligations. When forced to choose, I will not trade even a night's sleep for the possibility of extra profit.
Being in control of our finances will give us full knowledge of their current state, if we let other people manipulate them we can be frankly harmed.
40. It has been an ideal period for investors: a climate of fear is their best friend. Those who invest only when commentators are bullish end up paying a high price for a pointless collateral.
In order to obtain great benefits we must be brave with our investments, let us Guiding by third-party opinions will take us along the same path that the rest of the society.
41. The cash... it is for a business as oxygen is for an individual: I never think of it when it is present, and it is the only thing on my mind when it is absent.
Having cash is vital to be able to invest, without it we will not be able to obtain the highest possible profitability. Credits should never be our source of liquidity.
42. Too big to fail is not an alternate position in Berkshire. Instead, we will always arrange our affairs so that any cash requirements we may have are overshadowed by our own liquidity.
Liquidity is vital in a company dedicated to investment, without it no financial operation can be carried out.
43. If you like to spend six to eight hours a week working on investments, go for it. If he doesn't, then the average dollar cost of index funds.
In order to become professionally dedicated to the stock market, finance must be our passion. If not, we'd better find another job.
44. The only thing I will tell you is that the worst investment you can have is cash. Everybody talks about cash being king and all that kind of stuff. Cash will be worth less over time. But good business is going to pay off. More over time.
We should not have all our savings invested in cash, as inflation could hurt us over time.
45. You buy into a company because you want to own it, not because you want the stock to go up.
We must invest in companies that give us greater security, we must not buy anything with which we are not fully comfortable.
46. Charlie and I view Berkshire's marketable common stock as business interests, not trading symbols for be bought or sold based on their "chart" patterns, analyst "target" prices, or expert opinions on media.
His particular way of investing took him to the top of the economic firmament, where no other investor had ever been.
47. Never invest in a business that you cannot understand.
In order to obtain a profit it is essential to know deeply our own business, we must never invest money in what we do not know.
48. If you're not comfortable making a rough estimate of the asset's future earnings, just forget about it and move on.
You never know how an investment will evolve over time, being overly optimistic can backfire.
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 investment group in the world.
51. Buy companies with a strong track record of profitability and a dominant business franchise.
Knowing the companies that you buy is absolutely essential if you want to obtain possible benefits.
52. Better to have a partial interest in the Hope diamond than to own an entire man-made diamond
Quality products will always have a great value, because quality, as we all know, always sells.
53. One thing that might help would be to write down the reason you are buying a stock before you buy. Make a note: I am buying Microsoft at $ 300 billion because... Make yourself write this. Clear your mind and discipline.
All our investments must be executed following a predetermined plan, chance has no place in the world of large investments.
54. In the business world, the rear view mirror is always clearer than the windshield.
In order to predict how a stock will behave, we must know how it has behaved throughout its trajectory in the market.
55. I insist that you spend a lot of time, almost every day, just to sit and think. That is very rare in American business.
Having our time to meditate and clarify our thoughts will make us much more efficient investors.
56. I just sit in my office and read all day.
Reading is a beneficial activity for all people, thanks to it we can learn many things that may be useful in the future.
57. You can better prepare for your financial future by investing in your own education. If you study hard and learn at an early age, you will be in the best circumstances to secure your future.
Education may be the tool that is necessary for us in the future, investing in a good education will always be extremely profitable.
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. All of you can do it, but I guarantee that not many of you will.
Knowledge will help us achieve success in the future, without it, we will never achieve our goals.
60. In the 20th century, the United States endured two world wars and other traumatic and costly military conflicts; the Depression; a dozen recessions and financial panics; oil crises; a flu epidemic; and the resignation of a disgraced president. Dow rose from 66 to 11,497.
As Buffett tells us in this quote, the US market is very strong. During the 20th century it has proven to be a great source of economic stability.
61. In the 54 years (Charlie Munger and I) have worked together, we have never given up on an attractive purchase due to the macro or political environment, or the opinions of other people. In fact, these issues never come up when we make decisions.
Always act under 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 when everyone else is. The time to be interested is when no one else is. You can't buy what's popular and do it right.
The shares must be bought before they become popular, otherwise we will always pay an extra cost for them.
63. We've long felt that the only value of stock forecasters is making fortune tellers look good. Even now, Charlie and I continue to believe that short-term market forecasts are poisonous and should keep locked in a safe place, away from children and also from adults who behave in the market as kids.
Forecasts are not usually correct in most cases, nobody can know how a stock will behave, much less in the short term.
64. You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are correct.
The crowd does not have to always be right, we must learn to think for ourselves.
65. Don't get caught up in what other people are doing. Being a contrary is not the key, but neither is being a crowd follower. You need to detach yourself emotionally.
Being consistent with our thoughts will help us find our way in life.
66. American companies, and consequently a basket of stocks, will surely be worth much more in the years to come.
Economies mature over time and reach new market heights. Emerging countries tend to have the most dynamic economies in the world, drastically changing their purchasing power in a relatively short space of time.
67. For 240 years it has been a terrible mistake to bet against the United States, and now is not the time to start.
The United States has always been leading the economies of the first world, 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 then make your own decisions, knowing how to listen can be very beneficial in the long run.
69. Speculation is most dangerous when it seems easier.
Speculation can be the driver of a possible economic bubble that later causes a great negative economic impact on a society.
70. After 25 years of purchasing and overseeing a wide variety of businesses, Charlie and I have not learned how to solve difficult business problems. What we have learned is to avoid them.
The best way to deal with problems is to avoid them, this way we will never have to deal with them directly.
71. Keep things simple and stay out of fences. When you are promised quick profits, answer with a quick "no."
Quick profits do not exist, third parties should not take possession of our savings using their tricks.
72. Investors must remember that emotion and expense are their enemies.
Letting ourselves be carried away by emotions can cause us serious problems. In business, serenity and calm are always essential.
73. What we learn from history 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 those winners have expectations of future earnings if success continues to be gambled.
We should not gamble our savings in the lottery, investments can be very safe if we really know what we are doing.
75. You just have to be able to evaluate the companies within your circle of competence. The size of that circle is not very important; however, knowing your limits is vital.
We can invest in those companies that we know, in which we do not know, it would be too risky to invest.
76. There is nothing wrong with an investor who knows nothing and notices. The problem is when you are an investor who knows nothing but thinks you know something.
Ignorance is one of the most severe evils that affects the human being, being aware of it is the first step to solve it.
77. Diversification is a protection against ignorance. It makes very little 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 portfolio concentration policy can reduce risk if it increases, as it should, both the intensity with the that an investor thinks of a business as the level of comfort that he must feel with the economic characteristics of it before buy.
According to this great investor, concentrating all our savings in the same fund may be a better investment than we think.
79. I believe in giving my children enough that they can do anything, but not enough that they can do nothing.
Buffett wants his children to know how to earn money for themselves in the future, in this way we can intuit that he will not leave them a great inheritance after his death.
80. If you buy things you don't need, you will soon have to sell the things you do need.
Buying what we do not need can be very expensive in the future. We should not spend our money lightly.
81. If you are smart, you will earn a lot of money without borrowing.
Borrowing will force us to pay interest, these surcharges will make our investments less effective.
82. You can't borrow money at 18 or 20 percent and get by.
Falling into the arms of usurers will be really expensive. We should not ask for loans that make us pay disproportionate interest.
83. Because if you mess up and the rates go to 2 percent, which I don't think they will, you pay it. It is a one-way renegotiation. It is an incredibly attractive instrument for the owner and you have a one-way bet.
Investments can go wrong and we must be prepared to deal with the consequences.
84. We have learned to produce many goods and services, but we have not learned how to make everyone share the reward. The obligation of a society as prosperous as ours is to discover how no one is left too far behind.
We must all collaborate with our grain of sand in society, the fees and taxes we pay ensure a series 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 other 99%.
The one who has accumulated the most wealth should also be the one who collaborates the most with his contribution. Buffett knows very well that he is totally privileged and that he must collaborate for it.
86. You just hope the next guy pays more. And you only feel like you'll find the next guy who will pay more if he thinks he's going to find someone who will pay more. You are not investing when you do that, you are speculating.
Speculation can go very wrong for us, it can be a way to make money quickly and perhaps also to lose it.
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 value in which to invest your savings.
88. The difference between successful people and really successful people is that really successful people say “no” to almost everything.
Knowing when to say "no" can save us from more than one problem in the future. We must 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, we should not think that an investment will always be positive for us over time.
90. Better to hang out with better people than you. Pick associates whose behavior is better than yours, and you will deviate in that direction.
Knowing how to surround ourselves with the right people will help us prosper in life. Get inspired by those who are more successful than you.