If you’ve been following Warren Buffett for any length of time, then you know his quotes are timeless.
The Oracle of Omaha, and chairman and CEO of Berkshire Hathaway, is known for his educational quotes. Even though Warren Buffett has not written his own book, you can compile his large letters to shareholders into multiple volumes.
It’s easy to find the most popular Warren Buffett quotes by doing a basic Google search. But if you are a Warren Buffett enthusiast, desperate to read new material, then you’re in for a treat. Here’s nine rarely heard quotes from the billionaire investor.
1. Value is important.
“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” (2008 Berkshire Hathaway annual report)
2. The definition of value investing.
“[W]e had learned from Ben Graham that the key to successful investing was the purchase of shares in good businesses when the market prices were at a large discount from underlying business values.” (1985 Berkshire Hathaway annual report)
3. Errors of omission.
“During 2008 I did some dumb things in investments… I made some errors of omission, sucking my thumb when new facts came in that should have caused me to re-examine my thinking and promptly take action.” (2008 Berkshire Hathaway annual report)
4. Everything has a price.
“An investor cannot obtain superior profits from stocks by simply committing to a specific investment category or style. He can earn them only by carefully evaluating facts and continuously exercising discipline.” (1998 Berkshire Hathaway annual report)
5. On leaving the right amount of money to your children.
“… enough money so that they would feel they can do anything, but not so much that they could do nothing.” (Fortune magazine article, 1986)
6. Combining value investing in growth investing.
“[M]ost analysts feel they must choose between two approaches customarily thought to be in opposition: “value” and “growth.”… In our opinion, the two approaches are joined at the hip: Growth is always a component in the calculation of value.” (1992 Berkshire Hathaway annual report)
7. For the love of float.
“If our premiums exceed the total of our expenses and eventual losses, we register on underwriting profit that adds to the investment income our float produces. When such a profit is earned, we enjoy the use of free money – and, better yet, get paid for holding it. That’s like your taking out a loan and having the bank pay you interest.” (2012 Berkshire Hathaway annual report)
8. Admitting his mistakes.
“Overall, you would have been better off last year if I had regularly snuck off to the movies during market hours.” (1998 Berkshire Hathaway annual report)
9. Contrary to popular belief.
“When investing, pessimism is your friend, euphoria the enemy.” (2008 Berkshire Hathaway annual report)