Consolidated Warren Buffet quotes
Printed From: The Equity Desk
Category: Market Strategies
Forum Name: Buffet, Lynch and other legends - Investing Strategies
Forum Discription: DIscuss about the strategies followed by the great investors. Share an idea which would have impressed the masters. Try and bring their International experience into the Indian Markets.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1942
Printed Date: 19/Apr/2025 at 1:11pm
Topic: Consolidated Warren Buffet quotes
Posted By: kanagala
Subject: Consolidated Warren Buffet quotes
Date Posted: 21/Oct/2008 at 4:46am
Commonly referred to sayings of Warren Buffet:-
• The critical investment factor is determining the intrinsic value of a
business and paying a fair or bargain price.
• Never invest in a business you cannot understand.
• Risk can be greatly reduced by concentrating on only a few holdings.
• Stop trying to predict the direction of the stock market, the economy,
interest rates, or elections.
• Buy companies with strong histories of profitability and with a dominant
business franchise.
• You are neither right nor wrong because the crowd disagrees with you.
You are right because your data and reasoning are right.
• Be fearful when others are greedy and greedy only when others are
fearful.
• Unless you can watch your stock holding decline by 50% without
becoming panic-stricken, you should not be in the stock market.
• It is optimism that is the enemy of the rational buyer.
• As far as you are concerned, the stock market does not exist. Ignore it.
• The ability to say “no” is a tremendous advantage for an investor.
• Much success can be attributed to inactivity. Most investors cannot resist
the temptation to constantly buy and sell.
• Lethargy, bordering on sloth, should remain the cornerstone of an
investment style.
• An investor should act as though he had a lifetime decision card with just
twenty punches on it.
• Wild swings in share prices have more to do with the “lemming-like”
behavior of institutional investors than with the aggregate returns of
the company they own.
• As a group, lemmings have a rotten image, but no individual lemming has
ever received bad press.
• An investor needs to do very few things right as long as he or she
avoids big mistakes.
• “Turn-arounds” seldom turn.
• Is management rational?
• Is management candid with the shareholders?
• Does management resist the institutional imperative?
• Do not take yearly results too seriously. Instead, focus on four- or
five-year averages.
• Focus on return on equity, not earnings per share.
• Calculate “owner earnings” to get a true reflection of value.
• Look for companies with high profit margins.
• Growth and value investing are joined at the hip.
• The advice “you never go broke taking a profit” is foolish.
• It is more important to say “no” to an opportunity than to say “yes.”
• Always invest for the long term.
• Does the business have favorable long-term prospects?
• It is not necessary to do extraordinary things to get extraordinary
results.
• Remember that the stock market is manic-depressive.
• Buy a business, don’t rent stocks.
• Does the business have a consistent operating history?
• Wide diversification is only required when investors do not understand
what they are doing.
• An investor should ordinarily hold a small piece of an outstanding
business with the same tenacity that an owner would exhibit if he
owned all of that business.
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While one person hesitates because he feels inferior, the other is busy making mistakes and becoming superior.
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