Quotes from the brilliant

I would like to share with you a few quotes from Warren Buffett that I have just read. I may not buy the same stocks as he does, but I really admire the thoughts of this guy.

  1. Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
  2. Why not invest your assets in the companies you really like? As Mae West said, “Too much of a good thing can be wonderful”.
  3. Risk comes from not knowing what you’re doing.
  4. Wide diversification is only required when investors do not understand what they are doing.
  5. It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
  6. If a business does well, the stock eventually follows.
  7. Most people get 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.
  8. Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.
  9. I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
  10. We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.

Two more that I believe every one should always keep in their mind:

  1. 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.
  2. It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.

You can read more from the "Investment School" website here.


Cheapco said...

My favorite is not there: "Be greedy when others are fearful, and be fearful when others are greedy!" or something like that..

巴菲貓 BFM said...

That's #10. Cheapco, are you in Toronto?

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