Berkshire Hathaway Inc.'s (tickers: BRK.A, BRK.B) next annual shareholder meeting in Omaha, Nebraska, will not be held until May 4, 2024, but Berkshire's founder and legendary investor Warren Buffett fans don't have to wait. Until then, revisit the most important quotes from his long reign on Wall Street. Mr. Buffett is known for his approachability and wisdom, which he displayed during his lengthy question-and-answer session with the audience at Berkshire's annual meeting.
Relax, drink a Diet Coke, play some ukulele music in the background on your favorite Apple device, and review some of the best quotes from the man considered by many to be the greatest investor in history.
About making money.
“The first rule of investing is to not lose (money). And the second rule of investing is to remember the first rule. That's all there is to the rules.”
This is a tablesetter for all of Buffett's comments on investing. This 1985 quote sets the philosophical stage for everything that follows: Buffett's golden rule that capital preservation is every investor's top priority. While Buffett has certainly backed some investments that have lost money (former positions in ConocoPhillips (COP) and Tesco PLC (TSCO.L) come to mind), his track record shows that Berkshire Hathaway's portfolio It certainly confirms the sentiment that it has accumulated far more winners than any other investment. losers.
About being patient as an investor.
“Someone is sitting in the shade today because someone planted a tree a long time ago.''
As a stock picker whose every portfolio choice attracts attention, Buffett has long preached the importance of patience when building a solid stock portfolio. For Buffett, taking a long-term view is as important as picking the best stocks.
About the value.
“Price is what you pay. Value is what you get.”
Buffett is widely known as the greatest value investor of all time, and for good reason. That's exactly why his 2008 quote resonates. Buffett has traditionally made it a priority to find deeply discounted stocks in good (and therefore valuable) companies and hold onto them for the long term. If you can find great companies at low prices, you're an investor like Warren Buffett.
About anxiety.
“Fear is the most contagious disease you can imagine. Fear makes the virus look like a piker.”
As he made clear in his remarks at the 2020 Berkshire shareholder meeting, Warren Buffett is not shy about running into a financial crisis when other companies are rushing out. The Oracle of Omaha uses the word “contagious” to coyly suggest that following the herd is not the way to fund companies that discount the value of building a good investment portfolio.
On the other hand, do they go where the herd is afraid to tread? It's a future Buffett millionaire.
About believing in your investments.
“It's much better to buy a great company at a fair price than a fair company at a great price.”
In a 1989 letter to Berkshire Hathaway shareholders, Buffett spoke of the commitment and belief it takes to succeed on Wall Street. Buffett says, “Buy great companies at a fair price.'' Once you've done your homework and are prepared, you know that the company you're buying is worthy of your commitment and belief. It shows that you act with a resolute attitude.
At the right time of fear and greed.
“I have a simple rule in my buying behavior: I am afraid when others are greedy, and I am greedy when others are afraid.”
In a 2008 interview with the New York Times, Buffett returned to themes of fear and investing, particularly his steadfast stance on not following the crowd. Buffett is promoting a buy-low, sell-high vision by encouraging investors to follow their own path and not be fooled by temporary headlines. If you know your product well, don't be afraid to take the plunge and buy when others don't, and sell when others are buying.
About the worst kind of business.
“The worst kind of business is one that grows rapidly, requires significant capital to generate that growth, and yet makes little or no profit.”
In his 2007 letter to shareholders, Buffett wrote: He is not a fan of unprofitable companies that value speed over slow and steady growth, and said the airline industry is full of such companies. Such companies would not be included in Berkshire Hathaway's portfolio.
About the bet against Uncle Sam.
“Betting against America never pays off. We have overcome challenges, but it hasn't always been smooth sailing.”
In 2009, as the United States was emerging from the Great Recession, Buffett said the above line in an interview with NBC's Tom Brokaw. Oracle indicated that the United States is willing to accept its lumps, but is ready to pick itself up from the canvas and fight at any time.
Even in a more divided post-pandemic America, Buffett has made public comments reiterating his faith in American capitalism. “We love to complain everywhere,” the 93-year-old told CNBC last April. “But compared to other periods in history, the world has changed significantly for the better in terms of the richness of people's lives. It's human nature to be dissatisfied, and politics stirs it up. is.”
