Warren Buffet Speaks

Author : Janet Lowe

An easy to read book which contains a collection of quotes from Warren Buffett. Some quotes,

  1. Aim High But Don’t Over-Reach – “I don’t try to jump over 7-foot bars; I look for 1-foot bars that I can step over”
  2. Aim Well – “To swim a fast 100 metres, it’s better to swim with the tide than to work on your stroke”
  3. Focus On Your Goals – “I’ve often felt there might be more to be gained by studying business failures than business successes”
  4. Be Honest – “It takes 20years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently”
  5. Believe In Yourself – “In the end, I always believe my eyes rather than anything else”
  6. Have A Philosophy – “Rule No.1 : Never lose money. Rule No.2 : Never forget Rule No.1”
  7. Ignore Mr. Market’s Moods
    • “The market is there as a reference point to see if anybody is offering to do anything foolish. When we invest in stocks, we invest in businesses”
    • “(John Maynard) Keynes essentially said, don’t try and figure out what the market is doing. Figure out a business you understand, and concentrate”
    • “The future is never clear; you pay a very high price in the stock market for a cheery consensus. Uncertainty actually is the friend of the buyer of long-term values”
  8. Know The Difference Between Price and Value – “Price is what you pay. Value is what you get”
  9. Seek Intrinsic Value
    • “There is no formula to figure (intrinsic value) out. You have to know the business (whose stock you are considering buying)” 
    • “It doesn’t have to be rock bottom to buy it. It has to be selling for less than what you think the value of the business is, and it has to be run by honest and able people”
  10. Expect To Be Out of Step – “Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well”
  11. Earnings – “If the business does well, the stock eventually follows”
  12. Look Forward, Not Back – “Of course, the investor of today does not profit from yesterday’s growth”
  13. Avoid Risk – “I put heavy weight on certainty… if you do that, the whole idea of a risk factor doesn’t make any sense to me”
  14. Don’t Gamble – “The propensity to gamble is always increased by a large prize versus a small entry fee, no matter how poor the true odds may be”
  15. Watch For Unusual Circumstances – “Great investment opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised”
  16. Avoid Excessive Debts – “You will someday hit a pothole”
  17. Be Patient – “You do things when the opportunities come along”
  18. Think For Yourself – “Forecasters usually tell us more of the forecaster than of the future”
  19. Be Wary of Wall Street – “Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway”
  20. Only Buy Securities that You Understand
    • “Investment must be rational; if you can’t understand it, don’t do it” 
    • “When you combine ignorance and borrowed money, the consequences can get interesting.
  21. How To Determine the Value of Business – “I read annual reports of the company I’m looking at and read annual reports of the competitors — that is the main source of material”
  22. Keep It Simple
    • “If you have to go through too much investigation, something is wrong” 
    • “All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies”
  23. Think Big – “I can’t be involved in 50 or 70 things. That’s a Noah’s Ark way of investing — you end up with a zoo that way. I like to put meaningful amounts of money in a few things”
  24. Don’t Sweat the Maths – “Read Ben Graham and Phil Fischer, read annual reports, but don’t do equations with Greek letters in them”
  25. Seek Excellent Companies – “You should invest in a business that even a fool can run, because someday a fool will”
  26. Diversification – “Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing”
  27. Invest for the Long Term – “My favourite time frame for holding a stock is forever”
  28. To Sum Up – “Stocks are simple. All you do is buy shares in a great business for less than the business is intrinsically worth, with managers of the highest integrity and ability. Then you own those shares forever”