Warren Buffett, the legendary investor, is known for his timeless wisdom that continues to inspire investors around the world. As the CEO of Berkshire Hathaway, Buffett has delivered impressive annualized returns of nearly 20 percent for shareholders since 1965, outperforming the S&P 500’s 10.2 percent.
Buffett’s ability to simplify complex concepts and articulate his investment philosophy in a clear manner has made him one of the most quoted investors in history.
Here are some of the most memorable Warren Buffett quotes:
1. “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.”
This rule emphasizes the importance of managing emotions in investing. Understanding market sentiment can help investors capitalize on opportunities during times of optimism and pessimism.
2. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
Buffett’s shift towards investing in high-quality businesses highlights the long-term benefits of focusing on companies with strong fundamentals.
3. “Price is what you pay; value is what you get.”
Buffett’s emphasis on value investing underscores the importance of buying stocks below their intrinsic value based on the underlying business fundamentals.
4. “Big opportunities come infrequently. When it’s raining gold, reach for a bucket, not a thimble.”
Buffett advises investors to take advantage of attractive opportunities by making significant investments when prices are favorable.
5. “At the business school, I tell them that they would all be better off if when they got out of school somebody gave them a card with 20 punches on it and every time they made an investment decision, they used up a punch.”
Buffett’s advice on making thoughtful investment decisions highlights the importance of focusing on quality over quantity.
6. “You don’t get paid for activity, you only get paid for being right.”
Buffett emphasizes the importance of being right in investment decisions rather than being overly active in the market.
7. “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.”
Buffett encourages investors to prioritize their own goals and values over external validation.
Buffett challenges investors to consider whether they would rather be perceived as successful by others or truly succeed in their investments.
8. “Only buy something that you’d be perfectly happy to hold if the market shut down for ten years.”
Buffett’s advice on long-term investing emphasizes the importance of focusing on the underlying business rather than short-term market fluctuations.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.