This past Saturday, Warren Buffett turned 84 years old. Even at this age, Buffett is still involved in some of the biggest investments taking place around the world.
There’s no doubt that Warren Buffett is the most successful investor that history has ever seen. And when it comes to his investment philosophy, it really isn’t a secret. He has shared tidbits with the world throughout his lifetime in the form of many memorable quotes and quips.
He is a man of timeless brilliance, and we refer to his quotes over and over again all the time.
We’ve compiled five of our favorite Buffett quotes from many different sources. Please read them, pay close attention and enjoy the ride.
Purchasing Stock Is More Than Just Paying Attention to the Price
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
Investing Well Does Not Require You 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.”
Master the Basics of Investing
“To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing nothing of these. That, of course, is not the prevailing view at most business schools, whose finance curriculum tends to be dominated by such subjects. In our view, though, investment students need only two well-taught courses – How to Value a Business, and How to Think About Market Prices.”
Never Buy a Stock Because Other People Hate It
“None of this means, however, that a business or stock is an intelligent purchase simply because it is unpopular; a contrarian approach is just as foolish as a follow-the-crowd strategy. What’s required is thinking rather than polling. Unfortunately, Bertrand Russell’s observation about life in general applies with unusual force in the financial world: “Most men would rather die than think. Many do.”
Stocks Always Bounce Back Coming Out Of a Crisis
“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.”