Warren Buffett’s 5 best quotes on Investing
Warren Buffett made his first investment at 11, became a millionaire at 30 and reached self-made-billionaire status by age 56. It’s probably wise that we pay close attention to any investment advice we can find from him. Here are five of our favourite Warren Buffett quotes.
1. Circle of Competence
"Different people understand different businesses. And the important thing is to know which ones you do understand and when you're operating within what I call your circle of competence." — Warren Buffett, 1999 Berkshire Hathaway Annual Meeting
2. A slice of each business
"And I read Ben's [The Intelligent Investor] book in 1949 when I was at University of Nebraska, and that actually just changed my whole view of investing. And it really did, basically, told me to think about a stock as a part of a business … Once you crank into your mental apparatus that you're not looking at things that wiggle up and down on charts, or that people send you little missives on, you know, saying buy this because it's going up next week, or it's going to split, or the dividend's going to get increased, or whatever, but instead you're buying a business." — Warren Buffett, 2002 Berkshire Hathaway Annual Meeting
3.Margin of Safety
"On the margin of safety, which means, don't try and drive a 9,800-pound truck over a bridge that says it's, you know, capacity: 10,000 pounds. But go down the road a little bit and find one that says, capacity: 15,000 pounds." — Warren Buffett, 1996 Berkshire Hathaway Annual Meeting
"The margin of safety concept boils down to getting more value than you're paying," Buffett's partner Charlie Munger once said.
4. Start but be patient.
"Someone's sitting in the shade today because someone planted a tree a long time ago."
Charlie Munger, Buffett’s partner. “You don’t make money when you buy and you don’t make money when you sell. You make money when you wait.”
5. Make your own decisions
"A public opinion poll is no substitute for thought."