Warren Buffett is one of the most successful investors of all time. He is also one of the richest men in the world. Buffett is known for his simple, down-to-earth investing style and his focus on value investing.
Table of Contents:
1. Early Years
2. Buffett’s Investment Philosophy
3. Berkshire Hathaway
4. Some of Buffett’s Most Famous Investments
5. Top Warren Buffett Quotes
Early Years
Warren Buffett was born in Omaha, Nebraska, on August 30, 1930. Buffett’s father, Howard, was a stockbroker and his mother, Leila, was a homemaker. Buffett was the second of three children.
As a child, Buffett was an avid reader and showed an early interest in business and investing. At the age of 11, Buffett bought his first stock, Cities Service Preferred. He later recalled that he was “hooked” after seeing the stock price increase from $38 to $40.
Buffett graduated from high school in 1947 and then attended the University of Nebraska-Lincoln. He graduated with a bachelor’s degree in business administration in 1951.
After college, Buffett worked as an investment salesman for Buffett-Falk & Co. and then as an analyst for Graham-Newman Corp. In 1954, Buffett returned to Omaha and started his own investment partnership, Buffett Partnership Ltd.
Buffett’s Investment Philosophy
Buffett is a value investor. He looks for companies that are undervalued by the market and that have good long-term prospects. Buffett has said that his investing strategy is to “buy into a company because you want to own it, not because you want the stock to go up.”
Buffett has also said that he looks for companies with a “moat” around them, that is, a competitive advantage that will protect them from competition. He has cited Coca-Cola and Gillette as examples of companies with a moat.
Berkshire Hathaway
In 1962, Buffett began buying shares of Berkshire Hathaway, a textile manufacturing company. Berkshire Hathaway is now one of the largest and most successful companies in the world, and Buffett is its chairman and CEO.
Some of Buffett’s Most Famous Investments
Some of Buffett’s most famous investments include Coca-Cola, American Express, and Geico.
Buffett first bought shares of Coca-Cola in 1988. He has said that Coca-Cola is a “wonderful business” with a “moat” around it. Buffett has also said that he would like to own Coca-Cola shares for the rest of his life.
In 1963, Buffett bought shares of American Express after the company suffered heavy losses from a scandal. Buffett has said that American Express is a “great franchise” with a “moat” around it.
Buffett’s investment in Geico began in 1976. He has said that Geico is a “wonderful business” with a “moat” around it.
Warren Buffett Quotes
“What we learn from history is that people don’t learn from history.” – Warren Buffett
“The years ahead will occasionally deliver major market declines — even panics — that will affect virtually all stocks. No one can tell you when these traumas will occur.” – Warren Buffett
“…not doing what we love in the name of greed is very poor management of our lives.” – Warren Buffett
“We always live in an uncertain world. What is certain is that the United States will go forward over time.”
“Predicting rain doesn’t count, building the ark does.”
“Only when the tide goes out do you discover who’s been swimming naked.”
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
“This does not bother Charlie [Munger] and me. Indeed, we enjoy such price declines if we have funds available to increase our positions.”
“If you’re in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%.”
“Honesty is a very expensive gift. Don’t expect it from cheap people.”
“Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.”
“Investors should remember that excitement and expenses are their enemies.”
“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.”
“So smile when you read a headline that says ‘Investors lose as market falls.’ Edit it in your mind to ‘Disinvestors lose as market falls—but investors gain.’ Though writers often forget this truism, there is a buyer for every seller and what hurts one necessarily helps the other.”
“When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients.” – Warren Buffett
“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.” – Warren Buffett
“In the world of business, the people who are most successful are those who are doing what they love.” – Warren Buffett
“It’s been an ideal period for investors: A climate of fear is their best friend. Those who invest only when commentators are upbeat end up paying a heavy price for meaningless reassurance.” – Warren Buffett
“Speculation is most dangerous when it looks easiest.” – Warren Buffett
“I won’t say if my candidate doesn’t win, and probably half the time they haven’t, I’m going to take my ball and go home.” – Warren Buffett
“It is not necessary to do extraordinary things to get extraordinary results.” – Warren Buffett
“Chains of habit are too light to be felt until they are too heavy to be broken.” – Warren Buffett
“You know… you keep doing the same things and you keep getting the same result over and over again.” – Warren Buffett
“The investor of today does not profit from yesterday’s growth.” – Warren Buffett
“I always knew I was going to be rich. I don’t think I ever doubted it for a minute.” – Warren Buffett
“I insist on a lot of time being spent, almost every day, to just sit and think. That is very uncommon in American business. I read and think. So I do more reading and thinking, and make less impulse decisions than most people in business.” – Warren Buffett
“You’ve gotta keep control of your time, and you can’t unless you say no. You can’t let people set your agenda in life.” – Warren Buffett
“The most important investment you can make is in yourself.” – Warren Buffett
“Tell me who your heroes are and I’ll tell you who you’ll turn out to be.” – Warren Buffett
“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” – Warren Buffett
“Someone’s sitting in the shade today because someone planted a tree a long time ago.” – Warren Buffett
“After 25 years of buying and supervising a great variety of businesses, Charlie [Munger] and I have not learned how to solve difficult business problems. What we have learned is to avoid them.” – Warren Buffett
“If you get to my age in life and nobody thinks well of you, I don’t care how big your bank account is, your life is a disaster.” – Warren Buffett
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” – Warren Buffett
“The difference between successful people and really successful people is that really successful people say no to almost everything.” – Warren Buffett
“For 240 years it’s been a terrible mistake to bet against America, and now is no time to start.” – Warren Buffett
“Lose money for the firm, and I will be understanding. Lose a shred of reputation for the firm, and I will be ruthless.” – Warren Buffett
“Widespread fear is your friend as an investor because it serves up bargain purchases.” – Warren Buffett
“Half of all coin-flippers will win their first toss; none of those winners has an expectation of profit if he continues to play the game.” – Warren Buffett
“Basically, when you get to my age, you’ll really measure your success in life by how many of the people you want to have love you actually do love you.” – Warren Buffett
“Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.” – Warren Buffett
“You only have to do a very few things right in your life so long as you don’t do too many things wrong.” – Warren Buffett
“Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars.” – Warren Buffett
“You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of ideas come along, and I’ve had long dry spells. If I get an idea next week, I’ll do something. If not, I won’t do a damn thing.” – Warren Buffett
“The best chance to deploy capital is when things are going down.” – Warren Buffett
“Money is not everything. Make sure you earn a lot before speaking such nonsense.” – Warren Buffett
“The most common cause of low prices is pessimism—sometimes pervasive, sometimes specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It’s optimism that is the enemy of the rational buyer.” – Warren Buffett
“American business — and consequently a basket of stocks — is virtually certain to be worth far more in the years ahead.” – Warren Buffett
“The best thing I did was to choose the right heroes.” – Warren Buffett
“One can best prepare themselves for the economic future by investing in your own education. If you study hard and learn at a young age, you will be in the best circumstances to secure your future.” – Warren Buffett
Source: Wikipedia Forbes Hbr Berkshire Hathaway Investopedia CnbcBritannicaRuleoneinvestingBloombergGatesfoundation