Here Are 18 Brilliant Quotes From The Greatest Investor Of All Time

This is the most important thing

This is the most important thing

 

“Rule No. 1: never lose money; rule No. 2: don’t forget rule No. 1″

 

Be greedy when others are fearful

Be greedy when others are fearful

WebMuseum at ibiblio

“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful.”

Source: Letter to shareholders, 2004

Beware when investing turns into speculating

Beware when investing turns into speculating

Adplayers / Flickr

“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.”

Source: Letter to shareholders, 2000

The company is more important than price

The company is more important than price

Getty

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Source: Letter to shareholders, 1989

Don’t swing at everything

Don't swing at everything

Daniel Goodman / Business Insider

“The stock market is a no-called-strike game. You don’t have to swing at everything–you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, ‘Swing, you bum!'”

Source: The Tao of Warren Buffett via Engineeringnews.com

On Wall Street advice

On Wall Street advice

Daniel Goodman / Business Insider

“Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway.”

Source: The Tao of Warren Buffett

Price and value are not the same

Price and value are not the same

Ethan Miller/Getty

“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.”

Source: Letter to shareholders, 2008

No need to be a genius

No need to be a genius

“You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.”

Source: Warren Buffet Speaks, via msnbc.msn

If Newton had a “Fourth” Law of Motion…

If Newton had a  "Fourth" Law of Motion...

biker_jun via Flickr

“Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, “I can calculate the movement of the stars, but not the madness of men.” If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases.”

Source: Letters to shareholders, 2005

Bad things aren’t obvious when times are good

Bad things aren't obvious when times are good

“After all, you only find out who is swimming naked when the tide goes out.”

Source: Letter to shareholders, 2001

Forever is a good holding period

Forever is a good holding period

CNBC

“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

Source: Letter to shareholders, 1988

Lack of change is a good thing

Lack of change is a good thing

By Jono Haysom on Flickr

“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.”

Source: Businessweek, 1999

Time is good only for some

Time is good only for some

US Navy

“Time is the friend of the wonderful business, the enemy of the mediocre.”

Source: Letters to shareholders 1989

The best time to buy a company

The best time to buy a company

AP

“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.”

Source: Businessweek, 1999

Choose sleep over extra profit

Choose sleep over extra profit

Wouter van Doorn / Flickr

“I have pledged – to you, the rating agencies and myself – to always run Berkshire with more than ample cash. We never want to count on the kindness of strangers in order to meet tomorrow’s obligations. When forced to choose, I will not trade even a night’s sleep for the chance of extra profits.”

 Source: Letter to shareholders, 2008

Every company will eventually be fun by an idiot

Every company will eventually be fun by an idiot

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

Source: unknown

Stocks have always come out of crises

Stocks have always come out of crises

Wikimedia Commons

“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.”

Source: The New York Times, October 16, 2008

We haven’t figured out what this means

We haven't figured out what this means

Warren Buffett At Dairy Queen

Flickr

“I am a better investor because I am a businessman, and a better businessman because I am no investor.”

Source: Forbes.com – Thoughts On The Business Life

BONUS: Higher taxes aren’t a dealbreaker

BONUS: Higher taxes aren't a dealbreaker

Grover Norquist

Jim Watson/AFP/File

“SUPPOSE that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.”

Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.” Only in Grover Norquist’s imagination does such a response exist.”

Source: New York Times

 

Google planning to kill passwords

Google planning to kill passwords!! Web giant Google is researching to build a more secure hardware device which in future can be used to login to a computer or an online account, thus eliminating the need for a password. Designed in the shape of rings which can be worn on fingers, these hardware devices will aid in logging in to a computer or online account. The search engine first revealed its plans to put an end to passwords in an academic paper published online in January. The effort focused on having people plug a small USB key that provides their credentials into a computer. The possibility of using special jewellery in a similar manner was mentioned in that paper. According to Google’s principal engineer, who specialises in security, Mayank Upadhyay at the RSA security conference in San Francisco last week, “Using personal hardware to log in would remove the dangers of people reusing passwords or writing them down.” “Everyone is familiar with an ATM.

What if you could use the same experience with a computer?” Upadhyay said, adding that Google’s trial was focused on a slim USB key that performs a cryptographic transaction with an online service to prove the key’s validity when it’s plugged into a computer. The key also has a contactless chip inside so that it can be used to log in via mobile devices. Tokens like the ones Google is testing do not contain a static password that could be copied. The cryptographic key unique to the device is stored inside and is never transmitted. When the key is plugged in, it proves its validity by correctly responding to a mathematical challenge posed by the online service it is being used to log into, in a way that doesn’t produce any information that could be used to log in again. Google is already talking with other companies to lay the groundwork for using the technology to access different services and websites. “It’s extremely early stages, and we’re trying to get more partners,” said Upadhyay.

By Infant Jones