Warren Buffett Quotes

You might think that institutions, with their large staffs of highly-paid and experienced investment professionals, would be a force for stability and reason in financial markets. They are not:

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. I do it because I like this kind of life.

The attitude of our managers vividly contrasts with that of the young man who married a tycoon's only child, a decidedly homely and dull lass. Relieved, the father called in his new son- in-law after the wedding and began to discuss the future:

Son, you're the boy I always wanted and never had. Here's a stock certificate for 50% of the company. You're my equal partner from now on.'

Thanks, dad.'

Now, what would you like to run? How about sales?'

I'm afraid I couldn't sell water to a man crawling in the Sahara.'

Well then, how about heading human relations?'

I really don't care for people.'

No problem, we have lots of other spots in the business. What would you like to do?'

Actually, nothing appeals to me. Why don't you just buy me out?

Read 500 pages like this every week. That’s how knowledge builds up, like compound interest.

It’s easy to overlook what I consider to be the critical lesson of the Mrs. B saga: at 93, Omaha based Board Chairmen have yet to reach their peak. Please file this fact away to consult before you mark your ballot at the 2024 annual meeting of Berkshire.

It takes 20 years to build a reputation and five minuted to ruin it. If you think about that you'll do things differently.

The bet illuminated another important investment lesson: Though markets are generally rational, they occasionally do crazy things. Seizing the opportunities then offered does not require great intelligence, a degree in economics or a familiarity with Wall Street jargon such as alpha and beta. What investors then need instead is an ability to both disregard mob fears or enthusiasms and to focus on a few simple fundamentals. A willingness to look unimaginative for a sustained period — or even to look foolish — is also essential.

Loss of focus is what most worries Charlie and me when we contemplate investing in businesses that in general look outstanding.

Focus on the Forest — Forget the Trees Investors who evaluate Berkshire sometimes obsess on the details of our many and diverse businesses — our economic “trees,” so to speak. Analysis of that type can be mind-numbing, given that we own a vast array of specimens, ranging from twigs to redwoods. A few of our trees are diseased and unlikely to be around a decade from now. Many others, though, are destined to grow in size and beauty.

When “dumb” money acknowledges its limitations, it ceases to be dumb.

Size seems to make many organizations slow-thinking, resistant to change and smug.

We have tried occasionally to buy toads at bargain prices with results that have been chronicled in past reports. Clearly our kisses fell flat. We have done well with a couple of princes — but they were princes when purchased. At least our kisses didn't turn them into toads. And, finally, we have occasionally been quite successful in purchasing fractional interests in easily-identifiable princes at toad-like prices.

I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing.

In addition to being independent, directors should have business savvy, a shareholder orientation and a genuine interest in the company. The rarest of these qualities is business savvy — and if it is lacking, the other two are of little help. Many people who are smart, articulate and admired have no real understanding of business. That’s no sin; they may shine elsewhere. But they don’t belong on corporate boards.

I would rather be certain of a good result than hopeful of a great one.