Posted on | November 29, 2011 | No Comments
I was gathering quotes for my upcoming book and stumbled on lots of lovely quotes on investing by Warren Buffet. One interesting thing about these quotes is that if you really think about it, they are common sense. The sad reality is that when we are trying to invest our money, the quest for high returns often trigger greed, and common sense goes out the window. Stunts we would not ordinarily pull in our professional lives, we attempt when it comes to investing. We dabble into what we know nothing about, trust people we do not know, and resort to hope and prayers when the situation calls for hard work in due diligence.
Warren Buffet does not need much of an introduction. He was the world’s richest man before Bill Gates overthrew him, and they are quite good friends. Warren has been in the stock market and business of investing to know what works and what does not.
Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.
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.
Never invest in a business you cannot understand.
Risk comes from not knowing what you’re doing.
Stop trying to predict the direction of the stock market, the economy, interest rates, or elections.
I am a better investor because I am a businessman and a better businessman because I am an investor.
If you don’t feel comfortable owning something for 10 years, then don’t own it for 10 minutes.
Price is what you pay. Value is what you get.
Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing.
You shouldn’t own common stocks if a 50 per cent decrease in their value in a short period of time would cause you acute distress.
Great investment opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised.
Only when the tide goes out do you discover who’s been swimming naked.
You ought to be able to explain why you’re taking the job you’re taking, why you’re making the investment you’re making, or whatever it may be. And if it can’t stand applying pencil to paper, you’d better think it through some more. And if you can’t write an intelligent answer to those questions, don’t do it.
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 ten years.
A public-opinion poll is no substitute for thought.
In the business world, the rearview mirror is always clearer than the windshield.
Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.
Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid.
I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.
Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.
The Stock Market is designed to transfer money from the Active to the Patient.