My Top Ten Warren Buffet Quotes
Warren Buffett is one of the greatest investors of all time. He bought his first stock when he was just 11 years old and has since amassed a net worth of $88 billion. He is not only a learning machine but also a teacher who has from time to time dished out wonderful words of wisdom over the last several decades. Here we take a look at my top ten Warren Buffett quotes.
10- If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.
Buffet’s favorite holding period is “forever.” To him, buying wonderful stocks at a fair price and holding them for long periods is the best investment strategy. Some of his stocks include Coca Cola and Geico, which has given him handsome returns.
9- Risk comes from not knowing what you’re doing
When I started investing, I only looked at the surface and did not delve deep enough. The best way to reduce risk in investing is to learn as much as possible about the investment opportunity from trustworthy sources. I rarely invest in things I don’t fully understand, like Bitcoin. I may have missed the climb up to $19,000, but I did not envy others when they experienced the 80% drop which followed soon after.
8- 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
The people you surround yourself with have a huge impact on your mindset and your actions. You should always surround yourself with people who are smarter and better than you. Over time, you’ll see yourself growing, learning, and moving forward.
7- Only when the tide goes out do you discover who is swimming naked
When the times are good and markets are soaring, everyone vested felt like they are the smartest person alive. However, when the times change or markets crash, you get to see the real picture of who has the best long-term investing strategy. During the same financial crisis, thousands went bankrupt as their investments turn out to be poor decisions.
6- No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant
This is one of my favourite quote. Accumulating wealth is a long-term process that requires a lot of patience, time, and discipline. Most of us want to get rich quickly, and are always looking for the hot stocks that could multiply their money in three months. It doesn’t work that way. Patience is an important skill to learn in investing.
5- The most important investment you can make is in yourself
Warren Buffett is a voracious reader. He spends at least five hours every day reading books, newspapers, annual reports, and magazines. Both Warren Buffett and his business partner Charlie Munger have attributed reading for their phenomenal success. It is important to read to keep yourself updated and invest in books that will give you more knowledge.
4- Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be a more productive than energy devoted to patching leaks
You are going to make mistakes in your investment journey. Not all your investments will turn out to be winners. When you realize that you have made a mistake and invested in a bad business, the worst thing you can do is to keep pouring more money into it. A good way is to admit that you made a mistake, and then put that money to better use. I used to take profit on my winners to average down on my losers in my portfolio. It turned out to be a pretty bad move. Don’t pour good money into bad.
3- Someone’s sitting in the shade today because someone planted a tree a long time ago
There is a similar Chinese saying, 十年树木，百年树人. It takes 10 years to cultivate a tree, but 100 years to train a man. Plan for the future and start laying the groundwork. Start investing early and keep investing over the long term to ensure that your future self is debt-free and financially independent.
2- It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that, you’ll do things differently
Warren Buffet once famously said, “Lose money for the firm, and I will be understanding. Lose a shred of reputation for the firm, and I will be ruthless.” Your reputation is a priceless asset. It is also an important trait to look out for in the management of the companies that you are vested in.
1- The difference between successful people and really successful people is that really successful people say no to almost everything
Saying yes to everything actually limits your opportunities. We have only a limited amount of time and energy in a given day and being a Yes man will keep you bogged down with things that might impede your progress. The real importance of saying No lies in putting yourself first; knowing what is important to you and understanding that you have the right to live your best life.
Cheers
