Having amassed a wealth of over USD 100 billion as of June 2021, Warren Buffett is considered by many to be the greatest investor of all time. The ‘Oracle of Omaha’ began investing at the age of 11 years, when all most of us want to do is play with our friends. In the past five decades, Warren Buffett’s Berkshire Hathaway has given annual returns of over 20 percent, which is about twice as much as the returns of S&P 500.
Millions look upon him as a role model, and try to emulate his success in the stock market. Warren Buffett quotes are insight into the mind of this great investor. These tell us how he thinks and his principles in the stock market arena.
But we are not just bringing you Warren Buffett quotes on investing, but also his thoughts on life and success. So, if you are ready for a glimpse into the greatest minds in the financial market’s history, let us begin our Warren Buffett famous quotes.
“Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.”
Now, every investment you make cannot be a profitable one. Even Warren Buffett himself has made aplenty investments that proved to be sour. However, here he tells people to prioritize capital preservation above all.
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
This famous Warren Buffett quote has changed the lives of many investors. Rather than going for mediocre companies for a great price, Warren suggests going for companies with a solid business. Even if you have to pay a little extra for the stock.
“The stock market is designed to transfer money from the active to the patient.”
“If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”
“Time is the friend of the wonderful company, the enemy of the mediocre.”
“Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future.”
“Diversification is protection against ignorance. It makes little sense if you know what you are doing.”
“If you get to my age in life and nobody thinks well of you, I don’t care how big your bank account is, your life is a disaster.”
“You only have to do a very few things right in your life so long as you don’t do too many things wrong.”
“Honesty is a very expensive gift. Don’t expect it from cheap people.”
“Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.”
“If you’re in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%.”
“Price is what you pay. Value is what you get.”
In the stock market, the price of a stock is seldom in line with its value. While some companies tend to be undervalued, others are often overpriced. Thus, an investor must know the value they are getting for the price being paid.
“Remember that the stock market is a manic depressive.”
The stock market reacts even to the smallest of news. It is important to not get caught up in the daily developments and be confident on your homework.
“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
“Widespread fear is your friend as an investor because it serves up bargain purchases.”
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
“The best thing that happens to us is when a great company gets into temporary trouble…We want to buy them when they’re on the operating table.”
An investor must always be on the lookout to buy great businesses. Temporary setbacks are nothing but great opportunities to claim shares at a discounted price.
“For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favourable business developments.”
“On the margin of safety, which means, don’t try and drive a 9,800-pound truck over a bridge that says it’s, you know, capacity: 10,000 pounds. But go down the road a little bit and find one that says, capacity: 15,000 pounds.”
“You can’t produce a baby in one month by getting nine women pregnant.”
The legendary investor has always been a staunch supporter of buy-and-hold strategy, and this Warren Buffett quote is about the same.
“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”
“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
“Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in the absence of any market.”
“Do not take yearly results too seriously. Instead, focus on four or five-year averages.”
“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.”
“All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies.”
“An investor should act as though he had a lifetime decision card with just twenty punches on it.”
“The most important thing to do if you find yourself in a hole is to stop digging.”
“Since I know of no way to reliably predict market movements, I recommend that you purchase Berkshire shares only if you expect to hold them for at least five years. Those who seek short-term profits should look elsewhere.”
“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be a more productive than energy devoted to patching leaks.”
This Warren Buffett quote will come in handy if you ever find yourself with bad investments.
“Lose money for the firm, and I will be understanding. Lose a shred of reputation for the firm, and I will be ruthless.”
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
“The stock market is a no-called-strike game. You don’t have to swing at everything — you can wait for your pitch.”
“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.”
Here are two Warren Buffett quotes for those who believe one needs to be intelligent to be a successful investor.
“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.”
“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.”
Thus, a higher IQ doesn’t always mean a higher return in the stock market.
“When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients.”
“If returns are going to be 7 or 8 percent and you’re paying 1 percent for fees, that makes an enormous difference in how much money you’re going to have in retirement.”
“The years ahead will occasionally deliver major market declines, even panics, that will affect virtually all stocks. No one can tell you when these traumas will occur.”
“Only when the tide goes out do you discover who’s been swimming naked.”
“Predicting rain doesn’t count, building the ark does.”
So, always be ready for the inevitable downs in the market.
“The best chance to deploy capital is when things are going down.”
“We never want to count on the kindness of strangers in order to meet tomorrow’s obligations. When forced to choose, I will not trade even a night’s sleep for the chance of extra profits.”
“Cash … is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent.”
“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.”
“Buy into a company because you want to own it, not because you want the stock to go up.”
“Risk comes from not knowing what you’re doing.”
“We want products where people feel like kissing you instead of slapping you.”
“Never invest in a business you cannot understand.”
“It’s better to have a partial interest in the Hope diamond than to own all of a rhinestone.”
“In the business world, the rearview mirror is always clearer than the windshield.”
“I insist on a lot of time being spent, almost every day, to just sit and think. That is very uncommon in American business.”
If you are young, then this next Warren Buffett quote is for you.
“The most important investment you can make is in yourself.”
“Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.”
“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.”
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“Don’t get caught up with what other people are doing. Being a contrarian isn’t the key but being a crowd follower isn’t either. You need to detach yourself emotionally.”
“You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.”
“Speculation is most dangerous when it looks easiest.”
“Investors should remember that excitement and expenses are their enemies.”
“Keep things simple and don’t swing for the fences. When promised quick profits, respond with a quick “no.”
“Half of all coin-flippers will win their first toss; none of those winners has an expectation of profit if he continues to play the game.”
“What we learn from history is that people don’t learn from history.”
“When stock can be bought below a business’s value it is probably the best use of cash.”
“What is smart at one price is stupid at another.”
We say goodbye with this last incredible Warren Buffett quote.
“It is not necessary to do extraordinary things to get extraordinary results.”
We hope you liked these motivating Warren Buffett quotes.
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