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

Risk can be greatly reduced by concentrating on only a few holdings.

The advice "you never go broke taking a profit" is foolish.

The investor of today does not profit from yesterday’s growth.

If calculus or algebra were required to be a great investor, I’d have to go back to delivering newspapers.

If you’re an investor, you’re looking on what the asset is going to do, if you’re a speculator, you’re commonly focusing on, what the price of the object is going to do, and that’s not our game.

In the 20th century, the United States endured two world wars, and other traumatic and expensive military conflicts, the depression, a dozen or so recessions, and financial panics, oil shocks, a flu epidemic, and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.

It is possible, we could earn greater after tax returns, by moving rather frequently.

It's nice to have a lot of money, but you know, you don't want to keep it around forever. I prefer buying things. Otherwise, it's a little like saving sex for your old age.

Look for companies with high profit margins.

No matter how great the talent or efforts, some things just take time. You can't produce a baby in one month by getting nine women pregnant.

Our ignorance means we must follow the course prescribed by Pascal in his famous wager about the existence of God. Since he didn't know the answer, his personal gain/loss ratio dictated an affirmative conclusion.

Risk is a part of God’s game, alike for men and nations.

The approach and strategies are very similar in that you gather all the information you can and then keep adding to that base of information as things develop. You do whatever the probabilities indicated based on the knowledge that you have at that time, but you are always willing to modify your behavior or your approach as you get new information. In bridge, you behave in a way that gets the best from your partner. And in business, you behave in the way that gets the best from your managers and your employees.

The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.

If California has troubles, the country has troubles.

If you’re in the luckiest 1 per cent of humanity, you owe it to the rest of humanity to think about the other 99 per cent.

In the business world, the rear view mirror is always clearer than the windshield.

It is sheer folly, to forego buying shares in an outstanding business, whose long-term future is predictable, because of short-term worries about an economy, or a stock market that we know to be unpredictable. Why scrap an informed decision, because of an uninformed guess?

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.

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.

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.

Our second advantage relates to the allocation of the money our businesses earn. After meeting the needs of those businesses, we have very substantial sums left over. Most companies limit themselves to reinvesting funds within the industry in which they have been operating. That often restricts them, however, to a "universe" for capital allocation that is both tiny and quite inferior to what is available in the wider world. Competition for the few opportunities that are available tends to become fierce. The seller has the upper hand, as a girl might if she were the only female at a party attended by many boys. That lopsided situation would be great for the girl, but terrible for the boys.

Rule No.1: Never lose money. Rule No.2: Never forget rule No.1

The attitude of our managers vividly contrasts with that of the young man who married a tycoon's only child, a decidedly homely and dull lass. Relieved, the father called in his new son- in-law after the wedding and began to discuss the future: Son, you're the boy I always wanted and never had. Here's a stock certificate for 50% of the company. You're my equal partner from now on.' Thanks, dad.' Now, what would you like to run? How about sales?' I'm afraid I couldn't sell water to a man crawling in the Sahara.' Well then, how about heading human relations?' I really don't care for people.' No problem, we have lots of other spots in the business. What would you like to do?' Actually, nothing appeals to me. Why don't you just buy me out?

The less prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own affairs.

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