Warren Buffett Quotes On Money, Risk & Friendship

Warren Buffett (Warren Edward Buffett) was born (August 30, 1930) in Omaha, Nebraska, U.S. He is a famous investor, philanthropist and an American business magnate. Buffett is the fourth wealthiest person in the world, with a total net worth of $81.1 billion as of October 2017. He is also the Chief Executive Officer and Chairman of Berkshire Hathaway, an American multinational conglomerate holding company. From a young age he developed an interest in investing and business. During his graduation in Columbia University he learned and eventually molded his investment philosophy around a concept pioneered by Benjamin Graham–value investing. Hope these powerful Warren Buffett quotes gives you advice on the right investment and guides you towards growth.

Warren Buffett quotes

  1. “When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
  2. “Time is the friend of the wonderful company, the enemy of the mediocre.”
  3. “You only have to do a very few things right in your life so long as you don’t do too many things wrong.”
  4. “It is not necessary to do extraordinary things to get extraordinary results.”
  5. “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.”
  6. “What an investor needs is the ability to correctly evaluate selected businesses. Note that word ‘selected’: You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.’
  7. “An investor should act as though he had a lifetime decision card with just twenty punches on it.”
  8. “What counts for most people in investing is not how much they know, but rather how realistically they define what they don’t know.”  , Warren Buffett quotes about investing
  9. “There is nothing wrong with a ‘know nothing’ investor who realizes it. The problem is when you are a ‘know nothing’ investor but you think you know something.”
  10. “The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.”
  11. “Stocks of companies selling commodity-like products should come with a warning label: ‘Competition may prove hazardous to human wealth.”   , Warren Buffett quotes on wealth
  12. “For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.”
  13. Warren Buffett quotes on risk, Warren Buffett quotes
  14. “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.”
  15. “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.”
  16. “Be fearful when others are greedy and greedy only when others are fearful.”  , Warren Buffett quotes on real estate
  17. “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.”
  18. “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.”
  19. “Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”
  20. “The most important thing to do if you find yourself in a hole is to stop digging.”
  21. “You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.”
  22. “We make no attempt to pick the few winners that will emerge from an ocean of unproven enterprises. We’re not smart enough to do that, and we know it. Instead, we try to apply Aesop’s 2,600-year-old equation to opportunities in which we have reasonable confidence as to how many birds are in the bush and when they will emerge.”
  23. “Rule No. 1: never lose money; rule No. 2: don’t forget rule No. 1.”  , Warren Buffett quotes about money
  24. “When forced to choose, I will not trade even a night’s sleep for the chance of extra profits.”
  25. “I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.”  , Warren Buffett quotes about stock market
  26. “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”
  27. “We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it. In stating this opinion, we define risk, using dictionary terms, as “the possibility of loss or injury.”
  28. “It’s only when the tide goes out that you learn who has been swimming naked.”
  29. “When you combine ignorance and leverage, you get some pretty interesting results.”
  30. “I’ve seen more people fail because of liquor and leverage – leverage being borrowed money. You really don’t need leverage in this world much. If you’re smart, you’re going to make a lot of money without borrowing.”
  31. “People always ask me where they should go to work, and I always tell them to go to work for whom they admire the most.”  , Warren Buffett quotes about work
  32. “I learned to go into business only with people whom I like, trust, and admire.”
  33. “I’m not interested in cars and my goal is not to make people envious. Don’t confuse the cost of living with the standard of living.”
  34. “If you buy things you do not need, soon you will have to sell things you need.”
  35. “Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant.”
  36. “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.”
  37. “Chains of habit are too light to be felt until they are too heavy to be broken.”
  38. “By the age of 10, I’d read every book in the Omaha public library about investing, some twice. You need to fill your mind with various competing thoughts and decide which make sense. Then you have to jump in the water – take a small amount of money and do it yourself. Investing on paper is like reading a romance novel vs. doing something else. You’ll soon find out whether you like it. The earlier you start, the better.”
  39. “The most important investment you can make is in yourself.”
  40. “Imagine that you had a car and that was the only car you’d have for your entire lifetime. Of course, you’d care for it well, changing the oil more frequently than necessary, driving carefully, etc. Now, consider that you only have one mind and one body. Prepare them for life, care for them. You can enhance your mind over time. A person’s main asset is themselves, so preserve and enhance yourself.”
  41. “Life is like a snowball. The important thing is finding wet snow and a really long hill.”  , Warren Buffett quotes on life
  42. “It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.”
  43. Warren Buffett quotes
  44. “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
  45. “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.”
  46. “The difference between successful people and really successful people is that really successful people say no to almost everything.”  , Warren Buffett quotes on success
  47. “Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.”
  48. “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.”
  49. “Writing a check separates a commitment from a conversation.”
  50. “Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a fly epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”
  51. “Tell me who your heroes are and I’ll tell you how you’ll turn out to be.”
  52. “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
  53. “Honesty is a very expensive gift, don’t expect it from cheap people.”
  54. “I won’t close down a business of subnormal profitability merely to add a fraction of a point to our corporate returns. I also feel it inappropriate for even an exceptionally profitable company to fund an operation once it appears to have unending losses in prospect. Adam Smith would disagree with my first proposition and Karl Marx would disagree with my second; the middle ground is the only position that leaves me comfortable.”
  55. “Charlie and I would follow a buy-and-hold policy even if we ran a tax-exempt institution.”
  56. “A horse that can count to ten is a remarkable horse—not a remarkable mathematician.”
  57. “Our approach is very much profiting from lack of change rather than from change. With Wrigley chewing gum, it’s the lack of change that appeals to me.”
  58. “Someone’s sitting in the shade today because someone planted a tree a long time ago.”
  59. “If your employees, including your CEO, wish to give to their alma maters or other institutions to which they feel a personal attachment, we believe they should use their own money, not yours.”
  60. “I believe in giving my kids enough so they can do anything, but not so much that they can do nothing.”
  61. “We’ve long felt that the only value of stock forecasters is to make fortune tellers look good. Even now, Charlie and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children.”
  62. “In the 54 years (Charlie Munger and I) have worked together, we have never forgone an attractive purchase because of the macro or political environment, or the views of other people. In fact, these subjects never come up when we make decisions.”
  63. “Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future.”
  64. “In the business world, the rearview mirror is always clearer than the windshield.”  , Warren Buffett quotes business
  65. “What we learn from history is that people don’t learn from history.”
  66. “If past history was all that is needed to play the game of money, the richest people would be librarians.”
  67. “Nothing sedates rationality like large doses of effortless money.”
  68. “In a bull market, one must avoid the error of the preening duck that quacks boastfully after a torrential rainstorm, thinking that its paddling skills have caused it to rise in the world. A right-thinking duck would instead compare its position after the downpour to that of the other ducks on the pond.”
  69. “Having first-rate people on the team is more important than designing hierarchies and clarifying who reports to whom.”
  70. “Failing conventionally is the route to go; as a group, lemmings may have a rotten image, but no individual lemming has ever received bad press.”
  71. “What the wise do in the beginning, fools do in the end.”
  72. “But a pin lies in wait for every bubble. And when the two eventually meet, a new wave of investors learns some very old lessons: First, many in Wall Street — a community in which quality control is not prized — will sell investors anything they will buy. Second, speculation is most dangerous when it looks easiest.”
  73. Warren Buffett quotes
  74. “The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.”
  75. “Long ago, Ben Graham taught me that ‘Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
  76. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
  77. “You’re dealing with a lot of silly people in the marketplace; it’s like a great big casino and everyone else is boozing. If you can stick with Pepsi, you should be O.K.”
  78. “In some corner of the world they are probably still holding regular meetings of the Flat Earth Society. We derive no comfort because important people, vocal people, or great numbers of people agree with us. Nor do we derive comfort if they don’t.”
  79. “Intensity is the price of excellence.”
  80. “Investors should be skeptical of history-based models. Constructed by a nerdy-sounding priesthood using esoteric terms such as beta, gamma, sigma and the like, these models tend to look impressive. Too often, though, investors forget to examine the assumptions behind the models. Beware of geeks bearing formulas.”
  81. “Games are won by players who focus on the playing field –- not by those whose eyes are glued to the scoreboard.”
  82. “You need to divorce your mind from the crowd. The herd mentality causes all these IQ’s to become paralyzed. I don’t think investors are now acting more intelligently, despite the intelligence. Smart doesn’t always equal rational. To be a successful investor you must divorce yourself from the fears and greed of the people around you, although it is almost impossible.”
  83. “I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.”
  84. “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”
  85. “The investor of today does not profit from yesterday’s growth.”
  86. “When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.”
  87. “Loss of focus is what most worries Charlie and me when we contemplate investing in businesses that in general look outstanding. All too often, we’ve seen value stagnate in the presence of hubris or of boredom that caused the attention of managers to wander.”
  88. “There seems to be some perverse human characteristic that likes to make easy things difficult.”
  89. “I don’t have a problem with guilt about money. The way I see it is that my money represents an enormous number of claim checks on society. It’s like I have these little pieces of paper that I can turn into consumption. If I wanted to, I could hire 10,000 people to do nothing but paint my picture every day for the rest of my life. And the GDP would go up. But the utility of the product would be zilch, and I would be keeping those 10,000 people from doing AIDS research, or teaching, or nursing. I don’t do that though. I don’t use very many of those claim checks. There’s nothing material I want very much. And I’m going to give virtually all of those claim checks to charity when my wife and I die.”  , Warren Buffett quotes on money
  90. “If you’ve been playing poker for half an hour and you still don’t know who the patsy is, you’re the patsy.”
  91. “Talking to Time Magazine a few years back, Peter Drucker got to the heart of things: ‘I will tell you a secret: Dealmaking beats working. Dealmaking is exciting and fun, and working is grubby. Running anything is primarily an enormous amount of grubby detail work . . . dealmaking is romantic, sexy. That’s why you have deals that make no sense.”  , Warren Buffett quotes on work
  92. “Your premium brand had better be delivering something special, or it’s not going to get the business.”
  93. “Wide diversification is only required when investors do not understand what they are doing.”
  94. “You shouldn’t own common stocks if a 50% decrease in their value in a short period of time would cause you acute distress.”

    More Warren Buffett Quotes

  95. “I had a great teacher in life in my father. But I had another great teacher in terms of profession in terms of Ben Graham. I was lucky enough to get the right foundation very early on. And then basically I didn’t listen to anybody else. I just look in the mirror every morning and the mirror always agrees with me. And I go out and do what I believe I should be doing. And I’m not influenced by what other people think.”
  96. “I try to buy stock in businesses that are so wonderful that an idiot can run them because sooner or later, one will.”
  97. “In the long run managements stressing accounting appearance over economic substance usually achieve little of either.”  , Warren Buffett quotes about accounting
  98. “Culture, more than rule books, determines how an organization behaves.”
  99. “If each of us hires people who are smaller than we are, we shall become a company of dwarfs. But, if each of us hires people who are bigger than we are, we shall become a company of giants.”
  100. “The best thing I did was to choose the right heroes.”
  101. Warren Buffett quotes on management,Warren Buffett quotes
  102. “Somebody once said that in looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if you don’t have the first, the other two will kill you. You think about it; it’s true. If you hire somebody without [integrity], you really want them to be dumb and lazy.”
  103. “We always live in an uncertain world.”
  104. “The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.”
  105. “There comes a time when you ought to start doing what you want. Take a job that you love. You will jump out of bed in the morning. I think you are out of your mind if you keep taking jobs that you don’t like because you think it will look good on your resume. Isn’t that a little like saving up sex for your old age?”
  106. “If you’re in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%.”
  107. “Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in the absence of any market.”
  108. “I call investing the greatest business in the world … because you never have to swing. You stand at the plate, the pitcher throws you General Motors at 47! U.S. Steel at 39! and nobody calls a strike on you. There’s no penalty except opportunity lost. All day you wait for the pitch you like; then when the fielders are asleep, you step up and hit it.”
  109. “You know… you keep doing the same things and you keep getting the same result over and over again.”
  110. “Diversification is protection against ignorance. It makes little sense if you know what you are doing.”  , Warren Buffett quotes and sayings
  111. “If a business does well, the stock eventually follows.”
  112. “I don’t look to jump over seven-foot bars; I look around for one-foot bars that I can step over.”
  113. “What an investor needs is the ability to correctly evaluate selected businesses. Note that word “selected”: You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.”
  114. “In the world of business, the people who are most successful are those who are doing what they love.”
  115. “I tell college students, when you get to be my age you will be successful if the people who you hope to have love you, do love you.”  , Warren Buffett quotes about love
  116. “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. Both large and small investors should stick with low-cost index funds.”
  117. “Keep all your eggs in one basket, but watch that basket closely.”
  118. “Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing.”
  119. “The 21st century will witness further gains, almost certain to be substantial. The goal of the non-professional should not be to pick winners — neither he nor his ‘helpers’ can do that — but should rather be to own a cross-section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index  fund will achieve this goal.”
  120. “Let blockheads read what blockheads wrote.”
  121. “By periodically investing in an index fund, for example, the know-nothing investor can actually outperform most investment professionals. Paradoxically, when ‘dumb’ money acknowledges its limitations, it ceases to be dumb.”   , Warren Buffett quotes on investment
  122. “Huge institutional investors, viewed as a group, have long underperformed the unsophisticated index-fund investor who simply sits tight for decades. A major reason has been fees: Many institutions pay substantial sums to consultants who, in turn, recommend high-fee managers. And that is a fool’s game.”
  123. “A low-cost fund is the most sensible equity investment for the great majority of investors. My mentor, Ben Graham, took this position many years ago, and everything I have seen since convinces me of its truth.”
  124. “Success in investing doesn’t correlate with IQ … what you need is the temperament to control the urges that get other people into trouble in investing.”
  125. “Buy into a company because you want to own it, not because you want the stock to go up.”
  126. “In investing, it is not necessary to do extraordinary things to get extraordinary results.”
  127. “The best thing is to learn from other guy’s mistakes. [General George S.] Patton used to say, “It’s an honor to die for your country; make sure the other guy gets the honor.” There are a lot of mistakes that I’ve repeated. The biggest one, the biggest category over time, is being reluctant to pay up a little for a business that I knew was really outstanding.”
  128. Warren Buffett quotes images,Warren Buffett quotes
  129. “Predicting rain doesn’t count. Building arks does.”
  130. “Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.”
  131. “I think that both parties should declare the debt limit as a political weapon of mass destruction which can’t be used. I mean, it is silly to have a country that has 237 years building up its reputation and then have people threaten to tear it down because they’re not getting some other matter.”
  132. “The rich are always going to say that, you know, just give us more money and we’ll go out and spend more and then it will all trickle down to the rest of you. But that has not worked the last 10 years, and I hope the American public is catching on.”
  133. “Only when the tide goes out do you discover who’s been swimming naked.”
  134. “The only way to get love is to be lovable. It’s very irritating if you have a lot of money. You’d like to think you could write a check: ‘I’ll buy a million dollars’ worth of love.’ But it doesn’t work that way. The more you give love away, the more you get.”
  135. “In the short term, the market is a popularity contest. In the long term, the market is a weighing machine.”
  136. “I am a better investor because I am a businessman, and a better businessman because I am an investor.”
  137. “I would say the most satisfying thing actually is watching my three children each pick up on their own interests and work many more hours per week than most people that have jobs at trying to intelligently give away that money in fields that they particularly care about.”
  138. “You know, people talk about this being an uncertain time. You know, all time is uncertain. I mean, it was uncertain back in – in 2007, we just didn’t know it was uncertain. It was – uncertain on September 10th, 2001. It was uncertain on October 18th, 1987, you just didn’t know it.”
  139. “Americans are in a cycle of fear which leads to people not wanting to spend and not wanting to make investments, and that leads to more fear. We’ll break out of it. It takes time.”
  140. “Derivatives are financial weapons of mass destruction.”
  141. “I sent one e-mail in my life. I sent it to Jeff Raikes at Microsoft, and it ended up in court in Minneapolis, so I am one for one.”
  142. “There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning.”
  143. “There comes a time when you ought to start doing what you want. Take a job that you love. You will jump out of bed in the morning. I think you are out of your mind if you keep taking jobs that you don’t like because you think it will look good on your resume. Isn’t that a little like saving up sex for your old age?”
  144. “You can’t produce a baby in one month by getting nine women pregnant.”
  145. “The only time to buy these is on a day with no ‘y’ in it.”
  146. “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.”
  147. “A public-opinion poll is no substitute for thought.”
  148. “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 quotes about life
  149. “The big question about how people behave is whether they’ve got an Inner Scorecard or an Outer Scorecard. It helps if you can be satisfied with an Inner Scorecard.”
  150. “We enjoy the process far more than the proceeds.”
  151. “We believe that according the name ‘investors’ to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a romantic.”
  152. “Time is the friend of the wonderful company, the enemy of the mediocre.”

Interesting facts about Warren Buffett:-

  • He has pledged to give away 99 percent of his fortune to philanthropic causes, primarily via the Bill & Melinda Gates Foundation
  • He is sometimes referred as “Wizard”, “Oracle” or “Sage” of Omaha by global media outlets.
  • His first stock investment was at the age of 11
  • Buffett delivered The Washington Post every morning and brought in about $175 a month & selling used golf balls and collector stamps and buffing cars, he had amassed the equivalent of $53,000 by the age of 16
  • He was rejected from Harvard Business School
  • He has lived in the same Omaha house since 1958 which he originally bought for $31,500
  • Some people are so eager to meet Warren Buffett that they’ve bid up to $3.4 million to have lunch with him
  • Approximately 94 percent of his wealth was earned after he turned 60
  • He plays the ukulele
  • Barack Obama awarded him “Presidential Medal of Freedom”( highest civilian honor)
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