I just naturally want to do things that make sense. In my personal life too, I don't care what other rich people are doing. I don't want a 405 foot boat just because someone else has a 400 foot boat.
Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can't produce a baby in one month by getting nine women pregnant.
Our approach is very much profiting from lack of change rather than from change.
What we learn from history is that people don't learn from history.
It's the deleveraging that's going on right now that has caused the credit crisis.
I just sit in my office and read all day.
If you want to soar like an eagle in life, you can't be flocking with the turkeys.
I mean, you know, you're not going to change the human animal. And the human animal really doesn't get a lot smarter.
Energy deregulation will be the largest transfer of wealth in history.
I think you are out of your mind if you keep taking jobs that you don't like because you think it will look good on your resume. Isn't that a little like saving up sex for your old age?
Americans are in a cycle of fear which leads to people not wanting to spend and not wanting to make investments, and that leads to more fear. We'll break out of it. It takes time.
In my view, the trade deficit will create political turmoil at some point...Pretty soon, I think there will be a big adjustment.
That's the reality of what they're going to sell them to the Treasury for.
Focus alone is not enough; putting in the time to commit is also crucial to achieve success.
I don't want to be on the other side of the table from the customer. I was never selling anything that I didn't believe in myself or use myself.
Without passion, you don't have energy. Without energy, you have nothing.
The fact that people will be full of greed, fear, or folly is predictable. The sequence is not predictable.
What the wise do in the beginning, fools do in the end.
It's almost impossible to overpay the truly extraordinary CEO... but the species is rare.
Never do anything in life if you would be ashamed of seeing it printed on the front page of your hometown newspaper for your friends and family to see.
If you are a professional and have confidence, then I would advocate lots of concentration.
Price is what you pay. Value is what you get.
If you have a great manager, you want to pay him very well.
You're dealing with a lot of silly people in the marketplace; it's like a great big casino and everyone else is boozing. If you can stick with Pepsi, you should be OK.
If we have a strength, it is in recognizing when we are operating well within our circle of competence and when we are approaching the perimeter.
Do what you love and work for whom you admire the most, and you've given yourself the best chance in life you can.
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.
The big question about how people behave is whether they've got an Inner Scorecard or an Outer Scorecard. It helps if you can be satisfied with an Inner Scorecard.
Never give up searching for the job that you're passionate about.
Never give up searching for the job that you're passionate about. Try to find the job you'd have if you were independently rich. Forget about the pay. When you're associating with the people that you love, doing what you love, it doesn't get any better than that.
An investor should ordinarily hold a small piece of an outstanding business with the same tenacity that an owner would exhibit if he owned all of that business.
If merely looking up past financial data would tell you what the future holds, The Forbes 400 would consist of librarians.
During inflation, Goodwill is the gift that keeps on giving.
The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.
I know that Congress will do the right thing.
When asked how he became so successful in investing, Buffett answered: 'we read hundreds and hundreds of annual reports every year.
Our favorite holding period is forever.
Our favorite holding period is forever. We are just the opposite of those who hurry to sell and book profits when companies perform well but who tenaciously hang on to businesses that disappoint. Peter Lynch aptly likens such behavior to cutting the flowers and watering the weeds.
You get what I call the natural progression, the three Is. The innovators, the imitators, and the idiots.
Is management candid with the shareholders?
We have embraced the 21st century by entering such cutting-edge industries as brick, carpet, insulation and paint. Try to control your excitement.
Take the probability of loss times the amount of possible loss from the probability of gain times the amount of possible gain. That is what we're trying to do. It's imperfect, but that's what it's all about.
People will always try to stop you from doing the right thing if it is unconventional.
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
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.
Only when the tide goes out do you discover who's been swimming naked.
The smartest side to take in a bidding war is the losing side.
Buy stocks like you buy your groceries, not like you buy your perfume.
A CEO's behavior has a huge impact on managers down the line.
The Noah rule: Predicting rain doesn't count; building arks does.
What the human being is best at doing is interpreting all new information so that their prior conclusions remain intact.
Gold has two significant shortcomings, being neither of much use nor procreative.
Lethargy, bordering on sloth should remain the cornerstone of an investment style.
I've argued with the senators and congressmen I've talked to. You don't want to be too little too late. If you buy them at the right price, you may be buying two trillion of face value.
Cultivate curiosity and strive to become a little wiser every day.
I always knew I was going to be rich. I don't think I ever doubted it for a minute.
In a difficult business, no sooner is one problem solved than another surfaces -- never is there just one cockroach in the kitchen.
Too often, executive compensation in the U.S. is ridiculously out of line with performance. That won't change, moreover, because the deck is stacked against investors when it comes to the CEO's pay.
Too often, executive compensation in the U.S. is ridiculously out of line with performance. That won't change, moreover, because the deck is stacked against investors when it comes to the CEO's pay. The upshot is that a mediocre-or-worse CEO -- aided by his handpicked VP of human relations and a consultant from the ever-accommodating firm of Ratchet, Ratchet and Bingo -- all too often receives gobs of money from an ill-designed compensation arrangement.
I don't want to hold out false hopes that the -- by some magic moment, that things will turn around in a couple months because they wouldn't, Charlie. I mean, and it's a big mistake to try and mislead people.
Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return.
You do not adequately protect yourself by being half awake when other are sleeping.
Do not take yearly results too seriously. Instead, focus on four or five-year averages.
It makes a difference who the treasury secretary is.
Always invest for the long term.
We believe that according the name 'investors' to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a 'romantic.'
Derivatives are like sex. It's not who we're sleeping with, it's who they're sleeping with that's the problem.
Be brave when others are afraid, and afraid when others are brave.
Investment ideas, like women are often more exciting than punctual.
Focus on return on equity, not earnings per share.
I would say that an RFC-like thing might make sense. I probably would do it myself. But I don't think trying to combine that with what's going through now, I think what is needed now is liquidity.
I insist on a lot of time being spent, almost every day, to just sit and think. That is very uncommon in American business.
I insist on a lot of time being spent, almost every day, to just sit and think. That is very uncommon in American business. I read and think. So I do more reading and thinking, and make less impulse decisions than most people in business. I do it because I like this kind of life.
Honesty is a very expensive gift. Don't expect it from cheap people.
The plan itself is opportunism. There is no plan before that.
Value is what you get.
It's not debt per say that overwhelms an individual corporation or country. Rather it is a continuous increase in debt in relation to income that causes trouble.
In the insurance business, there is no statute of limitation on stupidity.
I tell college students, when you get to be my age you will be successful if the people who you hope to have love you, do love you.
Always associate yourself with people who are better than you.
I want to be able to explain my mistakes. This means I do only the things I completely understand.
When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.
If you have a harem of 40 women, you never get to know any of them very well.
I am not worried about the country. I'm just worried about anything that gums up the potential of the country. And right now, it's pretty gummed up.
You can't help some increase from this point. I don't want any viewer to go away think a magic wand exists in Congress. So they're going to see some more bad news. But if we do this, we're doing the right thing.
A public-opinion poll is no substitute for thought.
Life is like a snowball. The important thing is finding wet snow and a really long hill.
I do more reading and thinking, and make less impulse decisions than most people in business.
Cash combined with courage in a time of crisis is priceless.
If book knowledge made great investors, than the librarians would all be rich.
I think I could make you fifty percent a year on one million dollars. No, I know I could. I guarantee that.
A bull market is like sex. It feels best just before it ends.
I'm not worried they're all about the investments we make. I mean, listen, this country -- we've got $46,000 or $47,000 of GDP per capita. Now, we've done pretty darn well. We'll do better in the future.
Beware of geeks bearing formulas.
Risk is a part of God's game, alike for men and nations.
This economy doesn't work well without the lubrication of credit and trust.
Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing.
Problems in a company are like cockroaches in the kitchen. You will never find just one.
Working with people who cause your stomach to churn seems much like marrying for money -- probably a bad idea under any circumstances, but absolute madness if you are already rich.
It is not necessary to do extraordinary things to get extraordinary results.
We've got all the ingredients for a sensational future.
Investing in a market where people believe in efficiency is like playing bridge with someone who has been told it doesn't do any good to look at the cards.
Let blockheads read what blockheads wrote.
I don't read economic forecasts. I don't read the funny papers.
You're looking for three things, generally, in a person -- Intelligence, energy, and integrity. And if they don't have the last one, don't even bother with the first two.
Never ask a barber if you need a haircut.
So if you are evaluating others (or yourself!) in the investment field, think out some standards -- apply them -- interpret them.
Of our 49 billion, we haven't moved any to Bitcoin.
We say we are trying to buy into businesses with excellent economics, run by honest and able people at a decent price. We buy very few securities, so we look at it as "focused" investing.
Forecasts usually tell us more of the forecaster than of the forecast.
Does the business have favourable long term prospects?
Investing is forgoing consumption now in order to have the ability to consume more at a later date.
The three most important words in investing...Margin of Safety.
They say the chains of habit are too light to be felt until they are too heavy to be broken. The chains you put around yourself now have enormous consequences as you go through life.
It's us fun being a horse when the tractor comes along, or the blacksmith when the car comes along.
Never depend on single income. Make investments to create a second source.
Money to some extent sometimes let you be in more interesting environments. But it can't change how many people love you or how healthy you are.
The most important thing to do if you find yourself in a hole is to stop digging.
The stock market is a no-called-strike game. You don't have to swing at everything -- you can wait for your pitch.
There's no use running if you're on the wrong road.
Never invest in a business you can't understand.
You can't make a good deal with a bad person.
Good big decisions do not take time at all, if they do you are in trouble.
I buy expensive suits. They just look cheap on me.
I think what people understand there probably -- well, they were hoping the private sector would do it rescuing AIG.
Most business mistakes are irreversible setbacks, but you get another chance. There are two things in life that you don't get another chance at -- marrying the wrong person and what you do with your children.
How do you beat Bobby Fischer? You play him at any game but chess. I try to stay in games where I have an edge.
An investor will succeed by coupling good business judgment with an ability to insulate his thoughts and behavior from the super-contagious emotions that swirl about the marketplace.
We don't do unnecessary things at Berkshire. And there are many things at big companies that are unnecessary.
There seems to be some perverse human characteristic that likes to make easy things difficult.
Just imagine living on 21,000 a year. I mean you have 20 percent of the population doing that. So you don't have to worry about guys like me.
You don't ever ask a barber whether you need a haircut.
Investors should remember that excitement and expenses are their enemies.
Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful.
When you combine ignorance and leverage, you get some pretty interesting results.
What motivates most gold purchasers is their belief that the ranks of the fearful will grow ... As 'bandwagon' investors join any party, they create their own truth -- for a while.
What motivates most gold purchasers is their belief that the ranks of the fearful will grow. During the past decade that belief has proved correct. Beyond that, the rising price has on its own generated additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis. As 'bandwagon' investors join any party, they create their own truth -- for a while.
Why not invest your assets in the companies you really like? As Mae West said, Too much of a good thing can be wonderful.
A very rich person should leave his kids enough to do anything, but not enough to do nothing.
A small chance of distress or disgrace cannot, in our view, be offset by a large chance of extra returns.
We don't get paid for being busy, we get paid for being right.
We don't get paid for activity, just for being right. As to how long we'll wait, we'll wait indefinitely.
Rule #1: Never lose money; Rule #2: Don't forget rule #1.
I am not a businessman, I am an artist.
Time is your friend, impulse is your enemy. Take advantage of compound interest and don't be captivated by the siren song of the market.
In our view, derivatives are financial weapons of mass destruction carrying dangers that, while latent, are potentially lethal.
Keep all your eggs in one basket, but watch that basket closely.
Banking is very good business if you don't do anything dumb.
I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.
I'll tell you why I like the cigarette business. It cost a penny to make. Sell it for a dollar. It's addictive. And there's a fantastic brand loyalty.
Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.
Every day that goes by, I mean, if you don't react to Pearl Harbor for a week or two weeks or three weeks, you're behind in the war that you otherwise would have fought.
I measure success by how many people love me. And the best way to be loved is to be lo veable.
Growth and value investing are joined at the hip.
Our stay-put behavior reflects our view that the stock market serves as a relocation center at which money is moved from the active to the patient.
When bills come due, only cash is legal tender. Don't leave home without it.
It isn't given to man to be able to run a financial institution where different interest-rate scenarios will prevail on all of that so as to produce kind of smooth, regular earnings from a very large base to start with.
We've seen what can be accomplished when we use 50% of our human capacity. If you visualize what 100% can do, you'll join me as an unbridled optimist about America's future.
We've been in a recession, by any common sense definition, because if you look at the American public, they've got 20 billion -- 20 trillion, I should say, worth of residential homes.
Investing is not as tough as being a top-notch bridge player. All it takes is the ability to see things as they really are.
It is not greed that drives the world, but envy.
You've gotta keep control of your time, and you can't unless you say no. You can't let people set your agenda in life.
It takes 20 years to build a reputation and five minutes to ruin it.
It takes 20 years to build a reputation and five minutes to ruin it. If you think about that you'll do things differently.
Don't invest in pieces of papers, invest in great businesses underlying them.
When you're associating with the people that you love, doing what you love, it doesn't get any better than that.
If options aren't a form of compensation, what are they? If compensation isn't an expense, what is it? And, if expenses shouldn't go into the calculation of earnings, where in the world should they go?
Basically, when you get to my age, you'll really measure your success in life by how many of the people you want to have love you actually do love you.
I could end the deficit in 5 minutes. You just pass a law that says that anytime there is a deficit of more than 3% of GDP all sitting members of congress are ineligible for reelection.
We've used derivatives for many, many years. I don't think derivatives are evil, per se, I think they are dangerous.
You should look at stocks as small pieces of business.
For some reason people take their cues from price action rather than from values. Price is what you pay. Value is what you get.
If you invested in a very low cost index fund -- where you don't put the money in at one time, but average in over 10 years -you'll do better than 90% of people who start investing at the same time.
Never test the depth of river with both the feet.
You don't need to have extraordinary effort to achieve extraordinary results. You just need to do the ordinary, everyday things exceptionally well.
I do know that when I am 60, I should be attempting to achieve different personal goals than those which had priority at age 20.
The patient that's on the floor with the cardiac arrest is not Wall Street. It's the American economy.
Long ago, Ben Graham taught me that "Price is what you pay; value is what you get." Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down.
Investing in yourself is the best thing you can do. If you've got talents, no one can take them from you.
It's a big mistake to try and mislead people. They will turn around.
To be successful, you should concentrate on the world of companies, not arcane accounting mathematics.
There is seldom just one cockroach in the kitchen. You know, you turn on the light and, all of sudden, they all start scurrying around.
Failure comes from ego, greed, envy, fear, imitation. I have success not because I am smart, but because I am rational.
I think it will get moving faster. I mean once you get it off the -- once credit flows -- now the recession is going to get worse.
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
Investment students need only two well-taught courses -- How to Value a Business and How to Think About Market Prices.
The best investment you can make, is an investment in yourself... The more you learn, the more you'll earn.
Buy into a company because you want to own it, not because you want the stock to go up.
Investing requires qualities of temperament way more than it requires qualities of intellect.
John Maynard Keynes essentially said, don't try and figure out what the market is doing. Figure out a business you understand, and concentrate.
I have no idea on timing. It's easier to tell what will happen than when it will happen. I would say that what is going on in terms of trade policy is going to have very important consequences.
A diamond cannot be polished without friction, nor a person perfected without trials. Someone is enjoying shade today because someone planted a tree a long time ago.
Ultimately, there's one investment that supersedes all others: Invest in yourself.
If you can eliminate the government as a 39.6% partner, then you will be much better off.
When investing, pessimism is your friend, euphoria the enemy.
In the business world, the rear-view mirror is always clearer than the windshield.
Bad terminology is the enemy of good thinking.
My wealth has come from a combination of living in America, some lucky genes, and compound interest.
The 19th century belonged to England, the 20th century belonged to the U.S., and the 21st century belongs to China. Invest accordingly.
I mean the truth is, I've never had it so good in terms of taxes. I am paying the lowest tax rate that I've ever paid in my life.
The single most important decision in evaluating a business is pricing power.
Emotional makeup is more important than technical skill.
In looking for people to hire, look for three qualities: integrity, intelligence and energy. And if they don't have the first, the other two will kill you.
One's objective should be to get it right, get it quick, get it out and get it over. Your problem won't improve with age.
The latter qualification brings to mind a fellow who applied for a job and stated he had twenty years of experience-which was corrected by a former employer to read "one year's experience-twenty times.
An ounce of prevention is worth a pound of cure understated.
In the world of business, the people who are most successful are those who are doing what they love.
If you expect to continue to purchase stocks throughout your life, you should welcome price declines as a way to add stocks more cheaply to your portfolio.
I mean, you may be very mad at some guy that walked away with a huge golden parachute, but that really isn't the important thing.
The investor of today does not profit from yesterday's growth.
It's important to have the right monetary policy. It's important for, to have the right fiscal policy. But it's nowhere near as important as just the normal regenerative capacity of American capitalism.
In an inflationary world, a toll bridge (like company) would be a great thing to own because you've laid out the capital costs. You built it in old dollars and you don't have to keep replacing it.
The smarter the journalists are, the better off society is. For to a degree, people read the press to inform themselves -- and the better the teacher, the better the student body.
Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.
If I subscribed to the efficient market theory I would still be delivering papers.
Unfortunately, the hangover may prove to be proportional to the binge.
I have this complicated procedure I go through every morning, which is to look in the mirror and decide what I'm going to do. And I feel at that point, everybody's had their say.
A newspaper that reduces its coverage of the news important to its community is certain to reduce its readership as well.
Taking jobs to build up your resume is the same as saving up sex for old age.
You won't know whether you paid too much for it until it is too late.
The capital gains tax is 15 percent now. So I sit there in my office and I make a lot of money by capital gains, and I pay 15 percent, and I pay no payroll tax on it.
Surprise and delight your customers. There is nothing like that in business. If you delight your customers, you're a long way home.
I am not in the business of predicting general stock market of business fluctuations. If you think I can do this, or think it is essential to an investment program, you should not be in the partnership.
Making money isn't the backbone of our guiding purpose; it is the by-product of our guiding purpose.
Making money isn't the backbone of our guiding purpose; making money is the by-product of our guiding purpose. If you're doing something you love, you're more likely to put your all into it, and that generally equates to making money.
I get to do what I like to do every single day of the year.
Predicting rain doesn't count. Building arks does.
Resolution Trust Company was set up to liquidate a bunch of assets that the government had inherited because the savings and loans went broke.
Goldman Sachs saying they might be interested in such an investment. I'm familiar with the company. I've known the management, the current management, Jack Welch before Jeff Immelt. I've known him for decades.
Outstanding long-term results are produced primarily by avoiding dumb decisions, rather than by making brilliant ones.
The less prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own affairs.
The difference between successful people and really successful people is that really successful people say no to almost everything.
Investment decision should be made on the basis of the most probable compounding of after-tax net worth with minimum risk.
Wall Street is the only place that people drive to in a Rolls Royce to take advice from people who ride the subway.
Having first rate people on the team is more important than designing hierarchies and clarifying who reports to whom.
We need a tax system that essentially takes very good care of the people who just really aren't as well adapted to the market system but are nevertheless doing useful things in the society.
Asking for financial advice from a financial planner is like asking a barber if you need a hair cut.
Uncertainty is the friend of the buyer of long term values.
We always live in an uncertain world. What is certain is that the United States will go forward over time.
In business, I look for economic castles protected by unreachable moats.
Be fearful when others are greedy and greedy when others are fearful.
The ability to say no is a tremendous advantage for an investor.
I sent one e-mail in my life. I sent it to Jeff Raikes at Microsoft, and it ended up in court in Minneapolis, so I am one for one.
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.
Time is the friend of the wonderful company, the enemy of the mediocre.
I will give you two pieces of advice. Invest as much in yourself as you can; you are your own best asset by far. Then follow your passion; you want to be really excited to get out of bed every morning.
Government can't deliver a free lunch to the country as a whole. It can, however, determine who pays for lunch. And last week the Senate handed the bill to the wrong party... the poor and middle class.
Investing is simple, but not easy.
I think the FDIC was one of the great inventions of the American.
You have no ability, if you're a financial institution and you're threatened with criminal prosecution, you have no ability to negotiate.
Managers and investors alike must understand that accounting numbers are the beginning, not the end, of business valuation.
A Company should be viewed as an unfolding movie, not as a still photograph.
Knowing what to leave out is just as important as knowing what to focus on.
The happiest people do not necessarily have the best things.
They simply apreciate the things they have.
Risk comes from not knowing what you are doing.
When people tell me they've learned from experience, I tell them the trick is to learn from other people's experience.
Buy companies with strong histories of profitability and with a dominant business franchise.
Good profits simply are not inconsistent with good behavior.
OUR leaders have asked for "shared sacrifice." But when they did the asking, they spared me. I checked with my mega-rich friends to learn what pain they were expecting. They, too, were left untouched.
I would say that life at 84, I am having as much fun as I've ever had in my life. I mean I get to do what I love every day with the people I love-and it just doesn't get any better than that.
I checked the actuarial tables, and the lowest death rate is among six-year-olds. So I decided to eat like a six-year-old.
I learned to go into business only with people whom I like, trust, and admire.
Derivatives are financial weapons of mass destruction.
I don't think you can have a better secretary of the Treasury than Hank Paulson.
The only time to buy these is on a day with no 'y' in it.
Invest in as much of yourself as you can, you are your own biggest asset by far.
If you're in the luckiest one per cent of humanity, you owe it to the rest of humanity to think about the other 99 per cent.
The key to success is emotional stability.
No matter how great the talent or efforts, some things just take time.
The .350 hitter expects, and also deserves, a big payoff for his performance -- even if he plays for a cellar-dwelling team. And a .150 hitter should get no reward -- even if he plays for a pennant winner.
You pay a very high price in the stock market for a cheery consensus.
There are three kinds of people: 1. Innovators. 2. Imitators. 3. Idiots.
I mean Franklin Delano Roosevelt didn't -- you know, when he came in, he didn't print any money.
Although we deal with probabilities and expectations, the actual results can deviate substantially from such expectations, particularly on a short-term basis.
We do not have, nor have had, and never will have an opinion about where the stock market, interest rates, or business activity will be a year from now.
In a chronically leaking boat, energy devoted to changing vessels is more productive than energy devoted to patching leaks.
Like most trends, at the beginning it's driven by fundamentals, at some point speculation takes over. What the wise man does in the beginning, the fool does in the end.
We have usually made our best purchases when apprehensions about some macro event were at a peak. Fear is the foe of the faddist, but the friend of the fundamentalist.
You could be somewhere where the mail was delayed three weeks and do just fine investing.
We're perfectly willing to trade away a big payoff for a certain payoff.
The most important quality for an investor is temperament, not intellect.
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.
We do not view the company itself as the ultimate owner of our business assets but instead view the company as a conduit through which our shareholders own assets.
Do not put all your eggs in one basket.
The best jockey in the world is never going to win races riding a lame horse. But even a mediocre jockey can win races riding a champion.
If you don't make mistakes you can't make decisions.
If I taught a class, on my final exam I would take an Internet company and ask, 'How much is this company worth?' Anyone who would answer, I would flunk.
We just keep swimming and let the tide take care of itself.
The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price.
You will be right, over the course of many transactions, if your hypotheses are correct, your facts are correct, and your reasoning is correct. True conservatism is only possible through knowledge and reason.
I view derivatives as time bombs, both for the parties that deal in them and the economic system.
When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.
I do not believe in inheriting your position in society based on which womb you come from... I think a rich person should leave his children enough so they can do anything, but not enough so they can do nothing.
A low-cost index fund is the most sensible equity investment for the great majority of investors. My mentor, Ben Graham, took this position many years ago, and everything I have seen since convinces me of its truth.
I look for businesses in which I think I can predict what they're going to look like in ten to fifteen years time. Take Wrigley's chewing gum. I don't think the internet is going to change how people chew gum.
The nature of democracy is such that when there's -- there'll be revulsion, obviously, towards -- that's never going to happen again.
Someone is sitting in the shade today because someone planted a tree a long time ago.
I have an 800 freephone number now that I call if I get the urge to buy an airline stock. I call at two in the morning and I say: "My name is Warren and I'm an aeroholic." And then they talk me down.
He must never forget Charlie's plea: Tell me where I'm going to die, so I'll never go there.
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.
Calculate "owner earnings" to get a true reflection of value.
By periodically investing in an index fund, the know-nothing investors can actually outperform most investment professionals.
Knowing the edge of your competency is important. If you think you know more than you do, you will get in trouble.
I've made money over the years by buying into good companies, run by good people, at attractive prices. And I don't try and make it out of buying into the market at one point and selling at another point.
I made my first investment at age eleven. I was wasting my life up until then.
If I eat 2,700 calories a day, a quarter of that is Coca-Cola.
You never know who's swimming naked until the tide goes out.
Great investment opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised.
I don't have my diploma from the University of Nebraska hanging on my office wall, and I don't have my diploma from Columbia up there either-but I do have my Dale Carnegie graduation certificate proudly displayed.
With each investment you make, you should have the courage and the conviction to place at least ten per cent of your net worth in that stock.
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.
Nothing sedates rationality like large doses of effortless money.
Cash combined with courage in a time of crisis is priceless.
You are lucky in life if you have the right heroes. I advise all of you, to the extent you can, to pick out a few heroes.
If we start deciding, based on guesses or emotions, whether we will or won't participate in a business where we should have some long run edge, we're in trouble.
As far as you are concerned, the stock market does not exist. Ignore it.
The secret to happiness is having low expectations.
Do not save what is left after spending; instead spend what is left after saving.
Managers who want to expand their domain at the expense of owners might better consider a career in government.
I think any time you couple the term "Wall Street" with "bailout" or something like that, you know -- I don't like what's going on in Wall Street.
Take the job you would take if you were independently wealthy. You're going to do well at it.
I mean, if Pearl Harbor came along, you could have said the planning was wrong by the military ahead of time or maybe the battleships shouldn't have all been in the harbor and all that kind of thing.
Fear is the foe of the faddist, but the friend of the fundamentalist.
An IPO is like a negotiated transaction -- the seller chooses when to come public -- and it's unlikely to be a time that's favourable to you.
The U.S. Treasury has got borrowing costs like nobody else has.
In one way, I'm sympathetic to the institutional reluctance to face the music. I'd give a lot to mark my weight to 'model' rather than to 'market.'
If a business does well, the stock eventually follows.
The true investor welcomes volatility ... a wildly fluctuating market means that irrationally low prices will periodically be attached to solid businesses.
Turnarounds seldom turn.
The advice "you never go broke taking a profit" is foolish.
Someone's sitting in the shade today because someone planted a tree a long time ago.
Someone's sitting in the shade today because someone planted a tree a long time ago. The person sitting in the shade now should be grateful for the person who planted and tended that tree. That includes all those benefactors of humanity throughout history that created, invented, financed, produced, maintained and improved all that we enjoy today.
Games are won by players who focus on the playing field -- not by those whose eyes are glued to the scoreboard.
Sound investing can make you very wealthy if you're not in too big a hurry.
The stock market is a wonderfully efficient mechanism for transferring wealth from the impatient to the patient.
Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.
People went crazy with tulip bulbs. They went crazy with the South Sea Bubble, they went crazy internet stocks, they went crazy with the uranium stocks back when I was first getting started.
Diversification may preserve wealth, but concentration builds wealth.
Occasionally, a man must rise above principles.
Failing conventionally is the route to go; as a group, lemmings may have a rotten image, but no individual lemming has ever received bad press.
Be Fearful When Others Are Greedy and Greedy When Others Are Fearful.
When forced to choose, I will not trade even a night's sleep for the chance of extra profits.
The market system rewards me outlandishly for what I do, but that doesn't mean I'm any more deserving of a good life than a teacher or a doctor or someone who fights in Afghanistan.
If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.