Warren Buffett Quotes

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

We select our marketable equity securities in much the same way we would evaluate a business for acquisition in its entirety. We want the business to be (1) one we can understand, (2) with favorable long-term prospects, (3) operated by honest and competent people, and (4) available at a very attractive price. We ordinarily make no attempt to buy equities for anticipated favorable stock price behavior in the short term. In fact, if their business experience continues to satisfy us, we welcome lower market prices of stocks we own as an opportunity to acquire even more of a good thing at a better price. 1977

While investors and managers must place their feet in the future, their memories and nervous systems often remain plugged into the past.

The key is having more information than the other guy – then analysing it right and using it rationally.

The accountants' job is to record, not to evaluate. The evaluation job falls to investors and managers.
Accounting numbers, of course, are the language of business and are of enormous help to anyone evaluating the worth of a business and tracking its progress. Charlie and I would be lost without these numbers: they invariably are the starting point for us in evaluating our own businesses and those of others. Managers and owners need to remember, however, that accounting is but an aid to business thinking, never a substitute for it. p198

an unvaryingly strong liquid position and avoidance of money-market borrowings;

Our managers are totally in charge of their personal schedules. Second, we give each a simple mission: Just run your business as if: (1) you own 100% of it; (2) it is the only asset in the world that you and your family have or will ever have; and (3) you can't sell or merge it for at least a century.

Temperament is also important. Independent thinking, emotional stability, and a keen understanding of both human and institutional behavior is vital to long-term investment success. I’ve seen a lot of very smart people who have lacked these virtues.

Stay away from the mentality of using the credit card compulsorily and invest on yourself. Wealth has not created mankind but mankind has created wealth. Live your life in the simplest manner possible.

One of the lessons your management has learned — and, unfortunately, sometimes re-learned — is the importance of being in businesses where tailwinds prevail rather than headwinds.

Do not save what is left after expending, but spend what is left after saving.

"Furthermore, we do not think so-called EBITDA (earnings before interest, taxes, depreciation and amortization) is a meaningful measure of performance. Managements that dismiss the importance of depreciation - and emphasize "cash flow" or EBITDA - are apt to make faulty decisions, and you should keep that in mind as you make your own investment decisions,"

Time reveals who is full of shit.

يستلزم الأمر 20 سنة لبناء سمعة طيبة, وخمس دقائق لتدمير هذه السمعة

In business, I look for economic castles protected by unreachable moats.