Warren Edward Buffett is an American business investor who is known for his prowess in the stock market and considered one of the most successful investors in the world. He is Chairman and CEO of Berkshire Hathaway and is currently the seventh-wealthiest person in the world with a net worth of $80 billion. He is known to employ the strategy of value investing and considering a company as a whole for investment and not just daily market fluctuations it generates.
For his acute sense of investment, he is also widely referred to as 'Oracle of Omaha.' Following are a few of the famous Warren Buffett quotes that impart lessons not just in investment but can be used in all areas of our life.
Risk comes from not knowing what you're doing.
We are all advised about exploring more opportunities when it comes to career, especially business. And most of these opportunities comes with a certain amount of risk, which then engulfs us into more uncertainty. The truth of the matter is, the more you research about the prospects of your options, the less risky it becomes. It is risky if you don't know what you are getting into. The more you study your options, the more sure you will become of either accepting it or eliminating it.
Don't watch the market closely
This seems to be an oxymoron to what we will expect of a top-most investor, whose whole strategy is reading the market trends and holding or buying stocks accordingly. However, he suggests looking at the bigger picture. Not to follow the changes that a company goes through every day. He says if you have invested in a good company, that has profited you in the past, stick with it and don't get carried away by the temporary fluctuations.
Chains of habit are too light to be felt until they are too heavy to be broken.
We all know, habits play a huge rule into deciding what kind of person we will become, which is fair since habits are total of all our day to day actions. These habits are so deeply imbibed into our subconsciousness that we are mostly on autopilot when carrying out our daily tasks. We hardly ever realise how strongly we are connected to these habits until we are needed to break them.
I read and think
We are so busy in our lives- our jobs and chores that we hardly ever spent any time in pondering over what we are doing. Buffet has spent a good portion of his life reading and contemplating about share market and businesses, and he says that plays an important role in him being successful.
You only have to do a very few things right in your life so long as you don't do too many things wrong.
Most of our lives are riddled with failures and regrets. We have taken wrong decisions, wasted our time in apprehension and invested our time in fruitless activities, but we shouldn't lose hope. All it takes is a single success, that could be enough to turn your life around. But he warns about 'too many wrongs'. There are few actions whose impact can be long-drawn and too damaging. So, we need to watch out and become careful before it gets too late.
I'll give my children enough money so that they would feel they could do anything, but not so much that they could do nothing
He was a practitioner of tough love and didn't believe in passing down riches to kids and grandkids just because they were born in the right family. He says about giving your kids enough resources and making them capable of doing anything in their lives but not to shower them with too much riches that it makes them feel like they don't have to work at all.
Honesty is a very expensive gift. Don't expect it from cheap people.
Value honesty above all. Firstly, it is not easy; to be honest, it requires a lot of courage to always stand by the truth. So, you won't find these kinds of people easily, and they are quality people. Secondly, be careful whom you are trusting, especially when it comes to financial advice. Not everyone will give an honest suggestion,
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It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.
Not just Buffett but you would have gotten this advice so many times from others too. You might do a thousand things correct in your life, but if you mess up even a single one, society might not be very forgiving. It doesn't take much to ruin one's reputation; even a small rumour with no grain of truth is enough. So, you need to be very careful about your actions and think before you do something.
Someone is sitting in the shade today because someone planted a tree a long time ago.
He is not just promoting the idea of being more responsible towards our environment so that future generations can enjoy its benefits too. The thought also tells us about the expanse of the impact of our actions. If we are enjoying some kind of luxury or benefits today, it's because of our past actions or our parent's. And we can bring forth the same kind of result in future by making good use of our present.
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
It's a warning against miserly behaviour. It is better to spend a little more and buy a quality product which will serve you better and longer than to buy something just because it is cheap. The same rule applies for the stock market too. It's better to invest more in a good company than less in a mediocre company. See the value for money in the long run.
In the business world, the rearview mirror is always clearer than the windshield.
The business world is always uncertain. It is very difficult to predict the future of a company, and any investment comes with its fair share of risks. However, the past performance of a company is crystal clear in numbers and stats. Use the past identifiers to estimate future success.
Time is the friend of the wonderful company, the enemy of the mediocre.
A company that has good people and good methods will make money eventually. It just needs some time. However, a company with wrong business practices will perform badly in the wrong run even if they start well.
Predicting rain doesn't count. Building arks does.
It doesn't matter if you were able to gauge the issues that would strike a company in future, what matters is how you make use of this information. How you try to salvage the situation and even make a profit from it is what really counts. This is not only applicable to the business world but other areas too.
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.
It is more prudent to leave a situation that doesn't show any signs of betterment. Don't waste your precious time trying to fix something that has been deteriorating for a long time. There is no point of being a stockholder of a company that has been continuously being at a loss.
A public-opinion poll is no substitute for thought.
You don't always have to follow a herd opinion. Don't believe something just because others said so, use your head and evaluate at your own accord too. Most of the other's opinions lack originality and have been put forward without personal reflection. You don't have to do that. Speculate the statement and evaluate them against your values and parameters.
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.
The quote couldn't come at a more appropriate time. Not just journalists but all kind of media outlets, including dissemination through social media, need to be more responsible. For their 'truths' reaches millions who will accept their stories at face value. They are responsible for informing people and building their intellectual and emotional faculty. They should be thorough with their reporting.
The best thing I did was to choose the right heroes.
Our motivation lies on beliefs and people we grow up watching, be it in real life or on TV. They influence our psyche at deeper levels and inspire our goals and dreams in life. It is important to choose these people correctly or at least evaluate the already chosen ones. See if you are following an honourable man's footsteps.
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.
Wealth and fame should not be the ultimate goal in our lives. For most of these things give us temporary pleasures. What gives us true happiness is when we can ease others suffering and make their lives more comfortable. If you haven't been compassionate and generous in your life, you have missed a very important aspect of living- contentment.
The only way to get love is to be lovable. It's very irritating if you have a lot of money. You'd like to think you could write a check: 'I'll buy a million dollars' worth of love.' But it doesn't work that way. The more you give love away, the more you get.
If you want to be loved unconditionally, you should be able to practise the same kind of love towards others too. Money has never bought true happiness and love. It is just enough for materialistic goals. For spiritual and emotional satisfaction, you need to open up your heart towards others only then you will receive the same.
I always knew I was going to be rich. I don't think I ever doubted it for a minute.
Nothing great could ever be achieved without having a firm belief in yourself. If you have a clear goal in your mind and are willing to work for it, there is no way that you won't succeed.
Believe in yourself even when you are at the lowest point, that is all it takes to drive you forward, to fulfil your dreams.
Warren Buffet Quotes on Investment
Let's check some of the best Warren Buffet quotes on Investment:
Price is what you pay. Value is what you get.
If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.
Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
Risk comes from not knowing what you’re doing.
Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.
If you have more than 120 or 130 I.Q. points, you can afford to give the rest away. You don’t need extraordinary intelligence to succeed as an investor.
We don’t have to be smarter than the rest. We have to be more disciplined than the rest.
Cash combined with courage in a time of crisis is priceless.
Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
Warren Buffett Quotes About Business
It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price. – Warren Buffett
In the business world, the rearview mirror is always clearer than the windshield. – Warren Buffett
Only when the tide goes out do you discover who’s been swimming naked. – Warren Buffett
I think that both parties should declare the debt limit as a political weapon of mass destruction which can’t be used. I mean, it is silly to have a country that has 237 years building up its reputation and then have people threaten to tear it down because they’re not getting some other matter. – Warren Buffett
The rich are always going to say that, you know, just give us more money and we’ll go out and spend more and then it will all trickle down to the rest of you. But that has not worked the last 10 years, and I hope the American public is catching on. – Warren Buffett
Warren Buffett Diversification Quote
Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing. – Warren Buffett
In this article, we have just read some of the best Warren Buffett quotes on Investment, Money, Savings, Life, Spending and Success .