Like I mentioned in my previous articles, there is no "right and wrong" in investment as long as it earns you money. However, there are some notable ways that you may earn your money in a 'safer manner' rather than relying on lady luck.
Warren Buffett's investment ideology champions value investing and contrarian investment. Let's see what are Buffett's top 20 famous quotes and remind ourselves again on the basics of investing.
1. Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.
2. Price is what you pay. Value is what you get.
3. It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
4. The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.
5. We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
6. The best thing that happens to us is when a great company gets into temporary trouble...We want to buy them when they're on the operating table.
7. Someone's sitting in the shade today because someone planted a tree a long time ago
8. If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes
9. When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever
10. 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.
11. 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.
12. It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.
13. The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.
14. I believe in giving my kids enough so they can do anything, but not so much that they can do nothing.
15. Don't get caught up with what other people are doing. Being a contrarian isn't the key but being a crowd follower isn't either. You need to detach yourself emotionally.
16. The best chance to deploy capital is when things are going down.
17. Never invest in a business you cannot understand.
18. Risk comes from not knowing what you're doing
19. In the business world, the rearview mirror is always clearer than the windshield
20. Read 500 pages like this every day. That's how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.
Conclusion
His quotes are words of wisdom after over 75 years of investing. One can argue that Buffett lives in an era where inflation, growth, opportunities are all higher and his recent years bet aren't that successful. However, if you read my list of Top 20 Warren Buffett's famous quotes, you will realize that it talks about personal education/learnings, views on risks and how to tackle risks in investment, cutting losses and even money issues in raising kids.
As a human, I always believed that we ought to review what we have done especially during this year end break and holidays. Review the year and have a vision on the next. All the best folks!
