Warren Buffett, fully Warren Edward Buffett, aka Oracle of Omaha

Warren
Buffett, fully Warren Edward Buffett, aka Oracle of Omaha
1930

American Businessman, Investor and Philanthropist, Chairman and CEO of Berkshire Hathaway

Author Quotes

I follow very simple rule, when it comes to food, if a 3-year old doesn’t eat it, I don’t eat it.

I personally would increase the taxable base above the present ninety thousand. I pay very, very little in the way of social security taxes because I make a lot more than ninety thousand and the people in my office pay the full tax.

Ben [Graham]'s Mr. Market allegory may seem out-of-date in today's investment world, in which most professionals and academicians talk of efficient markets, dynamic hedging and betas. Their interest in such matters is understandable, since techniques shrouded in mystery clearly have value to the purveyor of investment advice. After all, what witch doctor has ever achieved fame and fortune by simply advising "Take two aspirins"?

Charlie and I believe that those entrusted with handling the funds of others should establish performance goals at the onset of their stewardship. Lacking such standards, managements are tempted to shoot the arrow of performance and then paint the bull's-eye around wherever it lands. In Berkshire's case, we long ago told you that our job is to increase per-share intrinsic value at a rate greater than the increase (including dividends) of the S&P 500. In some years we succeed; in others we fail. But, if we are unable over time to reach that goal, we have done nothing for our investors, who by themselves could have realized an equal or better result by owning an index fund.

Every saint has a past. Every sinner has a future.

I am a better investor because I am a businessman, and a better businessman because I am no investor.

I get to do what I like to do every single day of the year.

I really like my life. I’ve arranged my life so that I can do what I want.

An educational approach to money and investing struck me as a very good idea. People do form behavior habits very young on matters of money. I get calls every day from people who are in a financial hole.

An investor cannot obtain superior profits from stocks, by simply committing to a specific investment category or style.

An investor needs to do very few things right as long as he or she avoids big mistakes.

An investor should act as though he had a lifetime decision card with just twenty punches on it.

"Turn-arounds" seldom turn.

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.

A great investment opportunity occurs when a marvelous business encounters a one-time huge, but solvable problem.

An irresistible footnote: in 1971, pension fund managers invested a record 122% of net funds available in equities - at full prices they couldn't buy enough of them. In 1974, after the bottom had fallen out, they committed a then record low of 21% to stocks.

A hyperactive stock market is the pickpocket of enterprise.

Anything can happen in stock markets and you ought to conduct your affairs so that if the most extraordinary events happen, that you’re still around to play the next day.

A market downturn doesn’t bother us. For us and our long term investors, it is an opportunity, to increase our ownership of great companies with great management, at good prices. Only for short term investors and market timers, it is a correction not an opportunity.

As a group, lemmings have a rotten image, but no individual lemming has ever received bad press.

A public opinion poll is no substitute for thought.

A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.

A story that was passed down from Ben Graham illustrates the lemminglike behavior of the crowd: "Let me tell you the story of the oil prospector who met St. Peter at the Pearly Gates. When told his occupation, St. Peter said, “Oh, I’m really sorry. You seem to meet all the tests to get into heaven. But we’ve got a terrible problem. See that pen over there? That’s where we keep the oil prospectors waiting to get into heaven. And it’s filled—we haven’t got room for even one more.” The oil prospector thought for a minute and said, “Would you mind if I just said four words to those folks?” “I can’t see any harm in that,” said St. Pete. So the old-timer cupped his hands and yelled out, “Oil discovered in hell!” Immediately, the oil prospectors wrenched the lock off the door of the pen and out they flew, flapping their wings as hard as they could for the lower regions. “You know, that’s a pretty good trick,” St. Pete said. “Move in. The place is yours. You’ve got plenty of room.” The old fellow scratched his head and said, “No. If you don’t mind, I think I’ll go along with the rest of ’em. There may be some truth to that rumor after all."

A very rich person should leave his kids enough to do anything but not enough to do nothing.

Accounting consequences do not influence our operating or capital-allocation decisions. When acquisition costs are similar, we much prefer to purchase $2 of earnings that is not reportable by us under standard accounting principles than to purchase $1 of earnings that is reportable.

Author Picture
First Name
Warren
Last Name
Buffett, fully Warren Edward Buffett, aka Oracle of Omaha
Birth Date
1930
Bio

American Businessman, Investor and Philanthropist, Chairman and CEO of Berkshire Hathaway