Investor Commentary From The Ever Popular Warren Buffett

I am often really impressed by Warren Buffett’s fantastic ability to explain complex situations and make them very simple. This is especially true if you regularly look at investing, and you often manage portfolios for other clients as well as yourself.

It’s always fun to read very colorful commentary that can sum up a situation precisely. That’s why many of Warren Buffett’s best quotes will be found in his annual letters to shareholders. But he’s also given plenty of great quotes in his interviews and speeches as well.

Let’s now take a look at some of the best quotes from Warren Buffett. Here are a few of my all-time favorites…

Investor 101

Rule No. 1: Never Lose money

Rule No 2: Don’t forget Rule No. 1

Noodle on this one 

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

Wonderful vs. Fair

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

The Fourth Law of Motion

“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.”

The Watchful Investor 

“You only find out who is swimming naked when the tide goes out.”

Timing is everything 

“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 only greedy when others are fearful.”

Soaring

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

Pressure cooker 

“The stock market is a non-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!”

“You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of ideas come along, and I’ve had long dry spells. If I get an idea next week, I’ll do something. If not, I won’t do a damn thing.”

Socks and Stocks 

“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.”

Criteria

“Only buy something you’d be perfectly happy to hold if the market shut down for 10 years.”

“Never invest in a business you can’t understand.”

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