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

The strategy we've adopted precludes our following standard diversification dogma. Many pundits would therefore say the strategy must be riskier than that employed by more conventional investors. We disagree. We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it. In stating this opinion, we define risk, using dictionary terms, as "the possibility of loss or injury."

The supreme irony of business management is that it is far easier for an inadequate CEO to keep his job than it is for an inadequate subordinate.... At too many companies, the boss shoots the arrow of managerial performance and then hastily paints the bullseye around the spot where it lands.

The most common cause of low prices is pessimism - sometimes pervasive, sometimes specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.

The typical large company has a compensation committee... They don't look for Dobermans on that committee, they look for Chihuahuas.

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.

The most important thing to do if you find yourself in a hole is to stop digging.

The only time to buy these is on a day with no "y" in it.

The perfect amount to leave children is "enough money so that they would feel they could do anything, but not so much that they could do nothing."

The policies that we're following are likely to lead to a weaker dollar over a long period of years. It's not a forecast for next week, or next month or even next year.

I'd be a bum on the street with a tin cup if the markets were efficient.

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.

In my early days as a manager I, too, dated a few toads. They were cheap dates - I've never been much of a sport - but my results matched those of acquirers who courted higher-price toads. I kissed and they croaked.

It hurts companies, because managers need to know, how to value a business, to think sensibly about acquisitions. Since they don’t, they rely on Wall Street, which of course recommends doing deals, because they get paid X, if the deal doesn’t go through, and 20X if the deal does.

It's class warfare, my class is winning, but they shouldn't be.

Liquid resources and strong financial backing are scarce and valuable assets in today's telecommunications world. Level 3 has both.

Never depend on single income. Make investment to create a second source.

Only when you combine sound intellect with emotional discipline do you get rational behavior.

Read Ben Graham and Phil Fisher read annual reports, but don’t do equations with Greek letters in them.

The 3 percent overall federal tax rate I would pay -- if a Berkshire dividend were to be tax free -- seems a bit light.

The fact that people will be full of greed, fear or folly is predictable. The sequence is not predictable.

If a business does well, the stock eventually follows.

If you have a great manager, you want to pay him very well.

In our reported earnings we reflect only the dividends our portfolio companies pay us. Our share of the undistributed earnings of these investees, however, was more than $2 billion last year. These retained earnings are important. In our experience - and, for that matter, in the experience of investors over the past century -undistributed earnings have been either matched or exceeded by market gains, albeit in a highly irregular manner. (Indeed, sometimes the correlation goes in reverse. As one investor said in 2009: "This is worse than divorce. I've lost half my net worth - and I still have my wife.") In the future, we expect our market gains to eventually at least equal the earnings our investees retain.

It is more important to say "no" to an opportunity, than to say "yes".

It's got to be the best intellectual exercise out there. You're seeing through new situations every ten minutes…In the stock market you don't base your decisions on what the market is doing, but on what you think is rational….Bridge is about weighing gain/loss ratios. You're doing calculations all the time.

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