Warren Buffett on Investing

Considered one of the most successful investors of the 20th century, Warren Buffett began investing by age 11. Born in 1930 in Omaha, Nebraska, Buffett’s interests in finance began through visits to his father’s stock-brokerage shop and his jobs as a paperboy. A mathematical prodigy at a young age, Buffett went on to study at the University of Pennsylvania to study business. Buffett gained the nickname “The Oracle of Omaha” after the successes of the first firm he formed: Buffett Partnership.

In recent years, Buffett made an announcement that he would give his entire fortune away to charity, namely to the Bill and Melinda Gates Foundation.  He was named Forbes’ wealthiest man in 2008 and ranked 15th on Forbes’ “World’s Most Powerful People” list in 2013.

The following are Warren Buffett’s valuable thoughts on smart investing:

  1. Beware of geeks bearing formulas.

  2. Derivatives are financial weapons of mass destruction.

  3. I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.

  4. 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.

  5. If a business does well, the stock eventually follows.

  6. 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.

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

  8. Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.

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

  10. Price is what you pay. Value is what you get.

  11. Risk comes from not knowing what you’re doing.

  12. Risk is a part of God’s game, alike for men and nations.

  13. Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.

  14. We believe that according the name ‘investors’ to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a ‘romantic.’

  15. Why not invest your assets in the companies you really like? As Mae West said, “Too much of a good thing can be wonderful”.

  16. 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.

  17. Only when the tide goes out do you discover who’s been swimming naked.

  18. The investor of today does not profit from yesterday’s growth.

  19. We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.

  20. The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.

  21. Someone’s sitting in the shade today because someone planted a tree a long time ago.

About the Author Bill Ringle

Bill Ringle is a CEO, former Apple exec, published author, and angel investor. Through Grow Business Now, he offers strategies and tools to elevate growth for executives and entrepreneurs from more than 46 industries. Bill has conducted nearly 200 podcast interviews on My Quest for the Best, where industry and business leaders share their secrets to success.

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