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Warren Buffett quotes capture the essence of his approach to investing and life. That's why we love them.
To say, "When he talks, people listen" is an understatement. Buffett's famous quotes on life, investing, success, leadership, emotion, and money are recognized across the world.
Why do people love his quotes so much?
Because he's built his wealth long-term to over $80.9 billion (2019), making him one of the richest men in America.
As CEO of Berkshire Hathaway, Warren Buffett lives by a certain set of values that he uses to invest, gain capital and make other life decisions.
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His approach to investing in stockscan be identified throughout his famous investing quotes—which follow a similar methodology as
Rule 1. We gathered our favorites in this post.
These 100 intelligent and inspiring quotes on investing and success from Warren Buffett will give you a look into the mind of one of the wealthiest and most successful people in the world.
Famous Warren Buffett Quotes
Buffett’s Two Rules of Investing…
For us Rulers, the first, and I might be biased here, but also the best Warren Buffett quote is no surprise to us.
1. "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1"
But, it is possible for the stock market to price things wrong! You can find wonderful businesses on sale often.
As Buffett says,
2. "Remember that the stock market is a manic depressive."
For any consumer of daily financial news, this will ring true. Equity markets swing wildly from day to day on the smallest of news, rally, and crash on sentiment, and celebrate or vilify the most inane data points. It's important not to get caught up in the madness. Instead, stick to your homework.
Always stay rational.
So what is the Warren Buffett Rule?
Never lose money. Stay rational and stick to your homework when researching businesses in which to invest.
...But If You Do Happen to Lose
Every investor goes through losses at some point, but you have to know how to handle them.
3. "Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks."
In other words:
4. "The most important thing to do if you find yourself in a hole is to stop digging."
Investments can go bad, and when they do, it's best to bow out and stop throwing money at them. It is a difficult decision to make, but accepting the loss will prove to be more beneficial financially.
The Market Can Price Things Wrong
5. "Price is what you pay. Value is what you get."
Don't focus on short-term swings in price. Focus on the underlying value of your investment.
6. "Beware the investment activity that produces applause; the great moves are usually greeted by yawns."
This is sage advice from a man who has made a fortune on companies like Apple, American Express, General Motors, UPS, Johnson & Johnson, Mastercard, and Walmart.
7. "For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments."
If you pay too much for a company, your investments might take a hit later on.
High Returns with Low Risk is the Key
8. "Risk comes from not knowing what you are doing."
The advice here is obvious but often forgotten, particularly after investors have had some success.
The temptation to believe that success in one area you know well allows you to easily analyze another is much greater once you’ve had some good returns, but should be resisted.
Warren Buffett himself has kept out of the technology sector for the most part, given his lack of knowledge of the sector. Buffett said it best:
9. "Never invest in a business you cannot understand."
Warren Buffett has always held strong to the belief that index funds are one of the best ways to grow wealth. They are inexpensive and are not closely linked to how well one entity is predicted to fare.
Plus, individual stocks cost more so advisors will keep a larger percentage of earnings. Buffett says:
10. "If returns are going to be 7 or 8 percent and you're paying 1 percent for fees, that makes an enormous difference in how much money you're going to have in retirement."
Since cost matters, a passive form of investing could be the best path to take to build wealth.
It's Easier to Look Back Than to Look Into the Future
11. “In the business world, the rearview mirror is always clearer than the windshield."
The past is simple and straightforward. Whereas, the future can be murky because it is clouded by the perceptions of many.
Consider the Four M's Before Investing
When I talk about the four M's of investing, I'm referring to meaning, moat, management, and margin of safety.
Finding the right investment for you always begins with meaning, and sometimes, this can take time. Becoming an expert on a potential investment option is always more powerful to do before jumping in.
Allowing ample time to learn the ins and outs of any company before investing never fails.
12. "Time is the friend of the wonderful company, the enemy of the mediocre."
13. "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."
Then you'll look at the management to assess whether or not the company has a plan for continued growth and is run by good leaders.
And lastly, the margin of safety is the part of Buffett's investment strategy that stresses the idea of buying investments at a high price while searching for opportunities to pay less for something with higher value.
Warren Buffett quotes on the margin of safety state:
14. "The three most important words in investing are margin of safety."