Warren Buffett’s quotes on investing aren’t much different than the 10 commandments. Billionaire Warren Buffett is one of the most-followed investors and almost his every word is scrutinized, as people are trying to get some insights into his thought process in picking stocks and assessing the strength of companies and the economy in general.
For example, Buffett is not very worried about Donald Trump in the White House, as he has said that it is not important who holds the top office in Washington, since it is set to change every four or eight years. Moreover, he has said earlier this year that he bought more stock after the election, with Apple Inc. (NASDAQ:AAPL) being one company in which Berkshire Hathaway boosted its position (see article). In an interview with Fortune last year, Buffett said “long term, the stock market is going to be higher and I’ve written that many times.”
For those that follow Warren Buffett’s investment advice know that one of his principles is that his “favorite holding period is forever” and he has followed it religiously. Of course, this does not mean that Warren never sells any shares but his idea is to stay unnerved during minor hiccups that the stock market is subjected to and that are the real reason for his success. Therefore, the investor believes in owning stocks and not in their trading. He is not much perturbed by any short changes that the stock market might be subjected to. When asked about the impact of the potential policy changes that might be brought by the Trump administration, Buffett told Fortune that he was not looking at any policy changes. “I don’t know what the market’s going to do. Never have, never will,” he said. This shows his conviction in the fact that the future of stock prices are not dependent on the Presidents as they come and go.
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Over the years, Buffett invested in a few companies whose shares skyrocketed very quickly. However, he mostly has followed the strategy of investing in wide-moat companies that are paying generous dividends. Among his largest holdings are Wells Fargo & Co (NYSE:WFC), International Business Machines Corp. (NYSE:IBM), the Coca-Cola Co (NYSE:KO), General Motors Company (NYSE:GM), and Phillips 66 (NYSE:PSX).
The genius that Warren Buffett is has earned him the nickname ‘Oracle of Omaha’ and he has dispensed some very useful and interesting advice to all those that are interested in listening to him. With this in mind, we have compiled a list of 16 quotes that Warren Buffett said about investing.
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1. Value For Price
The market can price things wrong. In his 2008 letter to Berkshire shareholders, Buffett wrote:
“Long ago, Ben Graham taught me that “Price is what you pay; value is what you get.” Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.
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2. Opportunities
Make use of the opportunities as they come. “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble,” Buffett said.
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3. Market As Weighing Machine
Choose to stay invested for a long time, even forever. “In the short-term, the market is a popularity contest. In the long-term, the market is a weighing machine.”
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4. Competitive Advantage Strategy
“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.”
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5. Long Term Investment
Invest for a long term. In line with his aforementioned saying: “Our favorite holding period is forever”, Buffett also said:
“Only buy something that you’d be perfectly happy to hold even if the market shut down for 10 years.”
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6. Success Keys
Discipline and patience are the keys to success.
“Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant.”
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7. Two Golden Rules
Buffett follows these two rules on investing” “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1″. However, over the years, Berkshire Hathaway lost money from bad bets and from a negative overall situation of the market, like the one in the 2008 financial crisis. However, Buffett never invests in companies he doesn’t understand and never gambles by buying shares with the idea that he may lose money.
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8. How To Become Rich
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful,” Buffett said during his interview with Charlie Rose on PBS on October 1, 2008.
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9. The Market Value
“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.”
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10. Trust Before Investing
Invest in companies that you can trust. “An investor should act as though he had a lifetime decision card with just twenty punches on it,” Buffett said.
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11. Buy Businesses That Can Run By Anyone
Always buy businesses that can be run by anyone. One of Buffett’s most famous quotes is:
“I try to buy stock in businesses that are so wonderful that an idiot can run them, because sooner or later, one will.”
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12. High Returns With Low Risk
Finding low risk with high return investments is the key to success.
“Risk comes from not knowing what you are doing.”
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As mentioned earlier, Warren Buffett did not become successful overnight. He continuously learned and became a better investor with every failure that he has faced. If you want to follow the footsteps of the legendary investor, never shy from learning as this is the only tool in your hand that can make you go a long way!! Go for it!!
