Top 100 Greatest Quotes by Investment Legend Warren Buffett

Discover the profound investment and life insights of Warren Buffett, a hot topic nowadays. Delve into the top 100 quotes by the investment legend in this article.

Warren Buffett, an emblem of value investing, successful entrepreneur, and philanthropist, lives a modest life despite his immense wealth. He is celebrated for his timeless investment philosophies and life wisdom, guiding those passionate about investment.

Here, Mytour compiles and shares with you the 100 best quotes from the legendary investor Warren Buffett.

An Introduction to Warren Buffett

Born on August 30, 1930, in Omaha, Nebraska, USA, Warren Edward Buffett stands as a colossal figure in investment, a successful entrepreneur, and an American philanthropist. As the world's most accomplished investor, the major shareholder and CEO of Berkshire Hathaway, Forbes ranks him as the seventh wealthiest individual globally, with an estimated fortune of $100.6 billion as of April 2021.

Dubbed the 'Oracle of Omaha' or the 'Sage of Omaha,' Buffett is celebrated for his value investment strategy and his remarkably modest lifestyle.

Buffett is also renowned for his philanthropy, having pledged 99% of his wealth to the Gates Foundation, established by Bill Gates, among other charitable endeavors.

Warren Buffett's Golden Rules

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

While not every investment will be successful, the essence of this statement emphasizes the paramount importance of capital preservation in investment decisions.

Warren Buffett's Investment Philosophy

Insights from investment legend Warren Buffett on value investing, handling losing investments, the significance of reputation, proper investment mindset, reducing fees, and ignoring bad advice.

Buffett also shares perspectives on stock selection, share buybacks, the importance of liquidity, views on bitcoin, knowing what to avoid, and ignoring market noise and downturns.

'Price is what you pay. Value is what you get.'

'Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.'

'Widespread fear is our ally, offering us the chance to buy at bargain prices.'

'Be it socks or stocks, I relish buying quality goods when they are marked down.'

'We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.'

'Our best scenario is when a great company encounters temporary issues... We aim to buy such companies when they are on the operating table.'

'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.'

'For an investor, paying too much for the stock of an excellent company can render a decade of good business results irrelevant.'

'The key to successful investing isn't forecasting the impact of an industry on society or its growth, but rather identifying any company's competitive advantage and, most importantly, the durability of that advantage.'

'Margin of safety means not trying to drive a 9,800-pound truck over a bridge that can hold up to 10,000 pounds. Instead, you should look for a bridge that can handle 15,000 pounds.'

'You can't produce a baby in one month by getting nine women pregnant.'

'Someone is sitting in the shade today because someone planted a tree a long time ago.'

'If you're not prepared to hold a stock for ten years, don't even think about owning it for ten minutes.'

'When we have shares in outstanding businesses with excellent management, our preferred holding period is forever.'

'An investor should behave as if they have a lifetime decision card with only 20 slots for punching.'

'Since I find no reliable way to predict market fluctuations, I advise buying Berkshire stock only if you plan to hold it for at least five years. Those seeking quick profits should look elsewhere.'

'Approach buying stocks as you would a home. Understand and love it so much that you'd be content owning it even in the absence of any market.'

'True investing is about picking the right stocks at the right time and holding onto them as long as they remain great companies.'

'Annual results shouldn't be overly emphasized. Focus instead on the four or five-year average.'

'I never attempt to make money on the stock market. I buy under the assumption that the market could close the next day and not reopen for five years.'

'It's a grave mistake for long-term investors, including pension funds, university endowments, and savers, to measure their investment risk by the bond/stock ratio in their portfolios.'

'If you find yourself in a leaking boat, expending energy to switch to another boat is more efficient than attempting to patch the leak.'

'The first thing to do if you find yourself in a hole is to stop digging.'

'It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.'

'Losing the company's money is forgivable, but risking the company's reputation is absolutely intolerable.'

'The most crucial quality for an investor is temperament, not intellect. You need a temperament that derives not from the emotions of agreement or disagreement with the crowd.'

'Investment success doesn't hinge on being smart; what you really need is the emotional discipline to avoid the impulses that trap others.'

'Rocket science isn't necessary for investing. It's not a contest where the person with the highest IQ wins against those with less.'

'With trillions managed by Wall Street earning hefty fees, it's often the managers, not the clients, who reap the big rewards.'

'Wall Street is the peculiar place where people in Rolls Royces turn to those in the subway for advice.'

'If you're earning 7 or 8% returns but lose 1% to fees, the impact on your retirement savings could be substantial.'

'It's only when the tide goes out that you learn who's been swimming naked.'

'In the coming years, the market will experience significant drops – even panic – affecting most stocks. No one can predict when these shocks will occur.'

'Predicting rain doesn’t matter as much as building a shelter does.'

'Charlie Munger and I aren't bothered by it at all. In fact, we're delighted to see stock prices fall. If we have the cash, we'll bolster our positions.'

'The best opportunities for deploying capital come when everything is on the decline.'

'For investors, an atmosphere filled with fear is their best ally. Those who invest only when commentators are optimistic end up paying a high price for meaningless reassurance.'

'Being 'too big to fail' is not an excuse for failure at Berkshire. Instead, we ensure our liquidity always exceeds any cash requirements.'

'We never want to rely on the kindness of strangers to meet tomorrow's obligations. If forced to choose, I'd rather sacrifice a night's sleep than gamble on the chance to earn extra profit.'

'Cash is to a business what oxygen is to a human. For individuals, it's something you don't think about when it's there, but it's all you think about when it's not.'

'One thing I'll tell you is that the worst investment you can have is cash. Everyone says cash is king and such. The value of cash decreases over time, whereas the value of efficient business operations increases.'

'If you're willing to spend six to eight hours a week looking at your investments, go for it. Otherwise, just stick to dollar-cost averaging into index funds.'

'Invest in a company because you want to own a piece of it, not because you're hoping its stock will go up.'

'Never put money into a business you can't understand.'

'Risk arises from not knowing what you're doing.'

'If you're not comfortable making a rough forecast of a asset's future earnings, it's best to move on to something else.'

'Opt for companies with a strong profit history and dominant franchise business models.'

'We prefer products that make people want to kiss you rather than slap you.'

'Better to own a piece of the Hope diamond than the entirety of a counterfeit.'

'In the business world, the rearview mirror is always clearer than the windshield.'

'Over 54 years of working together, Charlie Munger and I never passed up an attractive deal because of macro environments or politics, or others' opinions. In fact, these subjective factors never came into play in our decision-making.'

'In the 20th century, the United States endured two world wars and other costly military conflicts, a great depression, numerous recessions and financial crises, oil shocks, a flu pandemic, and a presidential resignation. Yet, the Dow Jones soared from 66 to 11,497 in that century.'

'We have long felt the only value of stock forecasters is to make fortune tellers look respectable. Even now, Charlie and I maintain that short-term market forecasts are poisonous and should be kept away from children and adults who behave like children in the market.'

'Most people become 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.'

'Ignore the noise of others' actions. Being contrarian isn't automatically a ticket to success, nor is following the herd. Detach yourself to avoid being swayed by emotions.'

'Being at odds with the crowd doesn't make you wrong or right. You're right when your data and reasoning are sound.'

'A useful practice might be to jot down why you're buying a stock before you purchase it. Frame it like, 'I'm buying Microsoft at a $300 billion valuation because…' Forcing yourself to articulate this can clarify your mind and discipline.'

'After 25 years of purchasing and managing a myriad of businesses, Charlie and I have not learned how to solve tough business problems. What we've learned is to steer clear of them.'

'Speculation is most dangerous when it seems easiest.'

'Investors should bear in mind that excitement and expenses are their enemies.'

'Keep it simple and steer clear of the impossible. If quick profits are promised, your swift response should be 'no'.'

'What history teaches us is that people don't learn from history.'

'Purchasing stock below the value of the business represents possibly the best use of cash.'

'Some management teams decide to buy back billions worth of shares over a set number of months. That's not how you should buy things. You buy shares when they're priced less than their worth... Determining if a share buyback is beneficial isn't rocket science.'

'Bitcoin inherently holds no unique value.'

'You're hoping the next person will pay more. And you believe you'll find such a person only if he thinks he can find someone else who will pay even more. If that's your approach, you're speculating, not investing.'

'Stay away from it. It's fundamentally an illusion... To assume it has significant intrinsic value is, in my view, a joke.'

'With capable and passionate managers at the helm of ventures they love, you'll have a plethora of reports and still manage to sneak in an afternoon nap. Conversely, if your reporters are dishonest, incompetent, or lack passion, you're in for a heap of trouble.'

'Other Perspectives of Warren Buffett'

'Beyond his insightful quotes on investing and stocks, Warren Buffett also shares varied perspectives on the importance of education, understanding one's strengths and weaknesses, avoiding bad influences, charity, wise habits, views on debt, mortgages, gold, and index funds as follows:'

'It's okay for an investor 'who knows nothing' to admit their ignorance. The trouble begins when a 'know-nothing' investor believes they know something.'

'You only need enough insight to evaluate companies within your circle of competence. The size of the circle isn't crucial, but understanding its boundaries is.'

'We believe a focused investment portfolio strategy can reduce risk. The intensity with which an investor thinks about a business and his comfort level with its economic traits before investing also minimizes risk.'

'Diversification can shield a portfolio from ignorance, but for those in the know, it loses much of its merit.'

'I believe in giving my children enough to do anything but not so much that they do nothing.'

'I find it essential to spend a lot of time, almost daily, just sitting and thinking. This is quite a rare habit in the American business environment.'

'The most crucial investment you can make is in yourself.'

'The best preparation for your future economic activities is to invest in your own education. If you study diligently and learn while you're young, you'll always be in the best position to secure your future.'

'Immerse yourself in reading 500 pages a day. Knowledge builds up, similar to compound interest. Everyone can do it, but I assure you, not many will.'

'If you're smart, you'll make plenty of money without ever needing to borrow.'

'If you start purchasing things you don't need, soon you'll need to sell the things you do need.'

'It's impossible to profit while borrowing money at 18 or 20% interest.'

'A misstep in judgment, and a rise in interest rates to 2% means you're on the hook for the debt. It's a one-sided bargain, making it an attractive tool for homeowners.'

'Being in the top 1% of the world's fortunate means you owe it to the other 99% to share your luck.'

'We've mastered producing goods and services but not the art of sharing them generously. A thriving society like ours has the duty to ensure no one is left too far behind.'

'The real difference between successful people and the very successful ones is that the latter say no to almost everything.'

'Surround yourself with people better than you. Choose associates who act in ways you wish to emulate, and you'll naturally drift towards those behaviors.'

'Gold just sits there and stares back at you, whereas, as you know, Coca-Cola will earn you money, and I believe Wells Fargo will significantly increase your wealth. Owning a goose that lays eggs is far superior to owning one that merely hoards them.'

'All the gold ever mined would fit into a 67-foot cube. At current prices, you could buy all U.S. farms, 10 ExxonMobils, and still have a trillion dollars for walking around money. Or you could have a big metal cube. Which one do you think offers more value?'

'Investing in a very low-cost index fund – spreading your investments over more than a decade – will yield better returns than 90% of investment strategies initiated at the same time.'

'Simply pick a mutual fund like the S&P 500. Don't invest all your money at once; distribute it over time.'

'Extraordinary results don't always require extraordinary actions.'

Thus, Mytour has compiled and shared with you the 100 best quotes from Warren Buffett. We hope these quotes inspire you in life and in your business ventures. Thank you for reading this article.