What's your favorite Warren Buffett Quote/Lesson?

Certified Public Accountant · Chattanooga, TN · Member since 2008 · 279 posts · 151 votes

For the Warren Buffett fans out there, I've got a question. What is your favorite Warren Buffett quote/or lesson?

Mine is his perspective on how lucky we are to have been born in America at this particular time in history. When he breaks down the math on what your chances are to have been born in America vs other countries it really makes me feel fortunate to have been born here vs certain other countries that don't have the social stability, laws, human rights, etc that I sometimes take for granted.

Here is a quick clip of him explaining his perspective.

https://youtu.be/Z4glkcb7HHE

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Brandon Hicks
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
11y
I don't like Buffett as much these days as I once did. It's his connection to Gates, who I think is a horrible human.
That aside, I'm a buy an hold guy so I like how he places his bet and then pretty much rides it forever.
1 Reply
Account Closed
Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
11y
Act with honor and integrity.
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
. Be bold. Be confident.
“I always knew I was going to be rich. I don’t think I ever doubted it for a minute. ”
It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently."
3 Reply
Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
11y
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
5 Reply
Account Closed
Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
11y
@Ned Carey:

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."”
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Trevor Ewen
Rental Property Investor · Weehawken, NJ · Member since 2014 · 1k+ posts · 704 votes
11y
@Account Closed
Has got the right idea, i.e. Price is what you pay, value is what you get.
2 Reply
William Byrd
Investor · Greensboro, NC · Member since 2015 · 36 posts · 5 votes
11y
Since my favorite is taken about 20 years to build a reputation and five to ruin it I'll pick another (yea, I cheated and googled it), this is especially relevant because today I learned that only about 5% of people can afford to support themselves after the age of 65, the rest are relying on social security, are dead or have to keep working.
"Today people who hold cash equivalents feel comfortable. They shouldn't. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value."
2 Reply
Steve B.
Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
11y
If you know buffets history of inside trading while at Goldman Sachs and his crony capitalist relationship with heads of state you may want to rethink that whole honor and integrity thing
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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y
It's Only On Paper! Speaking of his losses. :)
1 Reply
Thomas Oliver
Summit, MS · Member since 2014 · 63 posts · 40 votes
11y
Steve B. We complain about the ultra Rich inside trading and doing under the table deals. What is the difference in us doing the same thing? If you are told about a deal that you shouldn't know about. Are you going to capitalize on it? Or pass up millions cause it's not morally right or breaking the rules a little. You can't break rules. You can bend them and find loop holes. Everyone does. Tax season for instance. I am by no means saying being a lying cheat is good. All I am truly trying to say is don't throw rocks in a glass house.
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Kurt Kwart
Specialist · Atlantic City, NJ · Member since 2013 · 431 posts · 170 votes
11y
Buffett teaming up with Gates is inspiring with givingpledge.org but my favorite thesis of his is:
The ever growing economic pie from population growth
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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
11y
Originally posted by @Account Closed:

@Ned Carey:
"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."”
Are you saying I shouldn't buy crap in the ghetto just because it is cheap? Say it ain't so. LOL
Actually I make a lot of money selling in very poor neighborhood to people who aren't as smart as Warren. No, not by taking advantage of homeowners like our friend "Account Closed" from San Antonio, but by selling to investors who should know better.
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Ryan Arth
Developer · Cleveland / Akron, OH · Member since 2008 · 922 posts · 399 votes
11y
Looking past the financial and valuation lessons, I always liked this quip by him:
"You can't have a baby in one month by getting nine women pregnant, some things just take time. . . . "
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Account Closed
Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
11y
Originally posted by @Ned Carey:

Originally posted by @Account Closed:
@Ned Carey:

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."”
Are you saying I shouldn't buy crap in the ghetto just because it is cheap? Say it ain't so. LOL
Actually I make a lot of money selling in very poor neighborhood to people who aren't as smart as Warren. No, not by taking advantage of homeowners like our friend "Account Closed" from San Antonio, but by selling to investors who should know better.
Joe is gone?
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Charles Worth
Investor · New York City, NY · Member since 2015 · 808 posts · 417 votes
11y
Most of the one I like were already taken but here are two other good ones:
Chains of habit are too light to be felt until they are too heavy to be broken.
The investor of today does not profit from yesterday's growth.
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Charles Worth
Investor · New York City, NY · Member since 2015 · 808 posts · 417 votes
11y
@Account Closed
Joe is gone he was replaced by someone else.
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Michael Rogers
OP
Certified Public Accountant · Chattanooga, TN · Member since 2008 · 279 posts · 151 votes
11y
I like all those quotes. Here's another one I found that I haven't heard in a while.
“Only when the tide goes out do you discover who’s been swimming naked.”
This was especially true in real estate in the mid-2000's. Everyone was making money. When the recession hit, it showed who had solid real estate businesses vs. who was just getting by because the market was climbing so fast.
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Dana WhickerPro Member
Investor · Fernandina Beach, FL · Member since 2014 · 557 posts · 374 votes
11y
Joe's been gone for months. I wonder what happened.
"I don't buy stocks, I invest in companies" - Warren Buffett
The fact that Turner, Buffett and Gates have pledged to give a billion a year to charity make them all alright in my book, regardless of political slant, hardware lean, or software preference.
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Bhekizwe M.
Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes
11y
His philosophy is inspiring:
He has said investing in yourself is your best investment
There is also the margin of safety principle that he follows and the Mr Market parable that shows he is to be taken advantage of(Mr Market)
Your temperament must be towards emotional stability even when others may be quitting etc
Rather buy quality at a rational price than just cheap
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Michael Rogers
OP
Certified Public Accountant · Chattanooga, TN · Member since 2008 · 279 posts · 151 votes
11y
I heard a funny Buffet quote the other day.
"If you want to become a millionaire in the airline industry, the then start out with a billion dollars and before long you'll be a millionaire."
His point is the airline industry is a terrible place to invest money. His lesson probably applies to not investing in real estate markets where the trends are declining. Employers leaving, high crime, etc
1 Reply
Douglas Dowell
Denver, CO · Member since 2012 · 350 posts · 175 votes
11y
Honesty is an expensive gift...don't expect it from cheap people.
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James Cash
Real Estate Broker · Anchorage, AK · Member since 2015 · 170 posts · 46 votes
11y
"Diversification is protection against ignorance. It makes little sense if you know what you are doing."
I was taught in school that diversification of one's portfolio is a must. The more I understand the world and the market, I'm beginning to realize how great of an investment real estate is (that doesn't mean I don't dabble with other investments!).
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Joshua D.Pro Member
BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
11y
Hey @Mindy Jensen - I thought you'd be all over this one . . .
Podcast Guest on Show #100
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
11y
"I'd buy a couple hundred thousand single family homes if it were practical to do. ...Held over the long term, they are an even better investment than stocks."
Sorry, @Joshua D., I somehow missed this post. Thanks for tagging me.
[email protected]Podcast Guest on Show #261
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Will Koederitz
Royal Oak, MI · Member since 2015 · 57 posts · 26 votes
11y
@Joshua D.I was thinking the same thing! "Buy when everyone's selling"
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Peter Sanchez
Real Estate Investor · Washington, DC · Member since 2014 · 236 posts · 328 votes
11y
Originally posted by @Ryan Arth:

"You can't have a baby in one month by getting nine women pregnant, some things just take time. . . . "
This is one of my favorites too! I also like how he talks about knowing your circle of competence and where it ends. He said "I would much rather deal with someone whose IQ is 140 but thinks it's 120 than someone whose IQ is 180 and thinks it's 200. The second guy will get you killed."
His partner Charlie Munger is also a good person to learn from (but he's more of a curmudgeon). Someone asked him once to recommend a good business book, and he gave the guy the name of a book he just read. He said "if you don't like the book, give it to someone more intelligent than you are, and i'm sure they'll love it."
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What's your favorite Warren Buffett Quote/Lesson?

Most Popular Reply

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”

25 Replies

Act with honor and integrity.

. Be bold. Be confident.

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."”

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."”

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."”