Warren Buffett is worth $100 Billion and is one of the most successful investors of all time. Here are 50 investing lessons from Warren Buffett.
1. Be fearful when others are greedy and be greedy only when others are fearful
2. Investing is laying out money now to get more back in the future
3. Price is what you pay. Value is what you get.
4. Our goal is to find an outstanding business at a sensible price, not a mediocre business at a bargain price.
5. It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
6. Never invest in a business you cannot understand
7. The value of a business is the cash it’s going to produce in the future
8. If a business does well, the stock eventually follows
9. Ignore the stock market, ignore the economy, and buy a business you understand
10. A great investment opportunity occurs when a marvelous business encounters a one-time huge, but solvable problem
11. Risk comes from not knowing what you’re doing.
12. Wide diversification is only required when investors do not understand what they are doing
13. Diversification may preserve wealth, but concentration builds wealth
14. You only have to do a very few things right in your life so long as you don’t do too many things wrong.
15. If you cannot control your emotions, you cannot control your money.
16. Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.
17. Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down
18. Cash combined with courage in a time of crisis is priceless.
19. Don’t pass up something that’s attractive today because you think you will find something better tomorrow.
20. In my view, for most people, the best thing to do is owning the S&P 500 index fund.
21. The Stock Market is designed to transfer money from the inpatient to the patient.
22. The true investor welcomes volatility… a wildly fluctuating market means that irrationally low prices will periodically be attached to solid businesses
23. Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.
24. Our favorite holding period is forever.
25. If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.
26. Time is the friend of the wonderful business.
27. Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell.
28. The three most important words in investing are margin of safety.
29. The investor of today does not profit from yesterday’s growth
30. In the short run, the market is a voting machine. In the long run, it’s a weighing machine.
31. Buy something for less than it’s worth
32. Widespread fear is your friend as an investor because it serves up bargain purchases
33. When investing, pessimism is your friend, euphoria the enemy.
34. The most common cause of low prices is pessimism, sometimes pervasive, sometimes specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces.
35. The United States endured two world wars, 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 president. Yet the Dow rose from 66 to 11,497
36. The years ahead will occasionally deliver major market declines, even panics, that will affect virtually all stocks. No one can tell you when these traumas will occur
37. I think the worst mistake you can make in stocks is to buy or sell based on current headlines
38. Speculation is most dangerous when it looks easiest.
39. 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.
40. Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.”
41. The best chance to deploy capital is when things are going down.
42. It’s been an ideal period for investors: A climate of fear is their best friend. Those who invest only when commentators are upbeat end up paying a heavy price for meaningless reassurance.
43. You’d get very rich if you thought of yourself as having a card with only twenty punches in a lifetime, and every financial decision used up one punch. You’d resist the temptation to dabble. You’d make more good decisions and you’d make more big decisions.
44. American business — and consequently a basket of stocks — is virtually certain to be worth far more in the years ahead
45. We always live in an uncertain world. What is certain is that the United States will go forward over time.
46. For 240 years it’s been a terrible mistake to bet against America, and now is no time to start.
47. You’ve got to understand accounting. It’s got to be like a language to you
48. If you don’t find a way to make money while you sleep, you will work until you die.
49. Your best investment is yourself. The more you learn, the more you’ll earn
50. If you buy things you do not need, soon you will have to sell things you need.
51. Money saved is money that can be invested to grow over time
52. In the world of business, the people who are most successful are those who are doing what they love
53. It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.
54. I believe in giving my kids enough so they can do anything, but not so much that they can do nothing