- Risk comes from not knowing what you’re doing;
- Price is what you pay. Value is what you get;
- Managers thinking about accounting issues should never forget one of Abraham Lincoln’s favorite riddles: "How many legs does a dog have if you call his tail a leg?" The answer: "Four, because calling a tail a leg does not make it a leg";
- You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right—and that’s the only thing that makes you right. And if your facts and reasoning are right, you don’t have to worry about anybody else;
- I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful;
- There seems to be some perverse human characteristic that likes to make easy things difficult;
- 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;
- It’s only when the tide goes out that you learn who’s been swimming naked;
- Rule No.1: Never lose money. Rule No.2: Never forget rule No.1;
- It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price;
- The Stock Market is designed to transfer money from the Active to the Patient;
- If you don’t feel comfortable owning something for 10 years, then don’t own it for 10 minutes;
- The stock market is a no-called-strike game. You don’t have to swing at everything–you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, "Swing, you bum!";
- Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing;
- Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results;
- Of one thing be certain: if a CEO is enthused about a particularly foolish acquisition, both his internal staff and his outside advisors will come up with whatever projections are needed to justify his stance. Only in fairy tales are emperors told that they are naked;
- 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;
- 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;
- The future is never clear, and you pay a very high price in the stock market for a cheery consensus. Uncertainty is the friend of the buyer of long-term values;
- We don’t get paid for activity, just for being right. As to how long we’ll wait, we’ll wait indefinitely;
- 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;
- Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, ‘I can calculate the movement of the stars, but not the madness of men.’ If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases;
- The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities — that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future — will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands;
- When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is usually the reputation of the business that remains intact;
- I’d be a bum on the street with a tin cup if the markets were always efficient;
- The fact that people will be full of greed, fear or folly is predictable. The sequence is not predictable;
- When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is usually the reputation of the business that remains intact;
- I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will;
- Someone’s sitting in the shade today because someone planted a tree a long time ago;
- CEO's are long on confidence but short on smartness;
- Never ask a barber if you need a haircut;
- I am a better investor because I am a businessman, and a better businessman because I am no investor;
- Time is the friend of the wonderful business, the enemy of the mediocre;
- When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever;
- 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.
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