Friday, 7 March 2014

Warren Buffet Quotes

Some insightful quotes by Warren Buffet which are also echoed in the words of his mentor, Benjamin Graham.

  • "The best thing that happens to us is when a great company gets into temporary trouble... We want to buy them when they`re on the operating table."
  • Be fearful when others are greedy and greedy only when others are fearful.

  • "The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities ¾ that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future ¾ will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands."

  • You don't have to swing at everything--you can wait for your pitch.

  • 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.

  • Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases.

  • Our approach is very much profiting from lack of change rather than from change. With Wrigley chewing gum, it's the lack of change that appeals to me. I don't think it is going to be hurt by the Internet. That's the kind of business I like.

  • I will not trade even one night’s sleep for the chance of extra profits.

  • I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.

  • Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.

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