The Top 10 Quotes on Investing from Warren Buffett

Warren Buffett Quotes

Warren Buffett (born August 30, 1930) is an American investor, businessman, and philanthropist. As you are probably aware of, he is one of the world’s most successful investors and the largest shareholder and CEO of Berkshire Hathaway. Buffett was ranked by Forbes as the richest man in the world during the first half of 2008, with an estimated net worth of $62.0 billion.

So when it comes to money and investing, let’s see what wisdom he has provided. Here are the top 10 Warren Buffett quotes:

  1. “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”
  2. “Risk comes from not knowing what you’re doing.”
  3. “The best way to own common stocks is through an index fund.”
  4. “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
  5. “Wide diversification is only required when investors do not understand what they are doing.”
  6. “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.”
  7. “Why not invest your assets in the companies you really like? As Mae West said, “Too much of a good thing can be wonderful”.
  8. “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.”
  9. “The new issue market is ruled by controlling stockholders and corporations who can usually select the timing of offerings. Understandably these sellers are not going to offer any bargains. It’s rare you’ll find X being sold for half-X. Indeed, in the case of common-stock offerings, selling shareholders are often motivated to unload only when they feel the market is overpaying.”
  10. “With each investment you make, you should have the courage and the conviction to place at least ten per cent of your net worth in that stock.”

According to Wikipedia his Philosophy on Wealth is as follows:

From a NY Times article: “I don’t believe in dynastic wealth,” Warren Buffett said, calling those who grow up in wealthy circumstances “members of the lucky sperm club.” Buffett has written several times of his belief that, in a market economy, the rich earn outsized rewards for their talents. The following is taken from one of Buffett’s articles: “A market economy creates some lopsided payoffs to participants. The right endowment of vocal chords, anatomical structure, physical strength, or mental powers can produce enormous piles of claim checks (stocks, bonds, and other forms of capital) on future national output. Proper selection of ancestors similarly can result in lifetime supplies of such tickets upon birth. If zero real investment returns diverted a bit greater portion of the national output from such stockholders to equally worthy and hardworking citizens lacking jackpot-producing talents, it would seem unlikely to pose such an insult to an equitable world as to risk Divine Intervention.

About the Author

Myrko Thum

Author of THUMoney.com - The Personal Finance and Investment Blog

2 Comments

  • Myrko

    Reply Reply February 27, 2014


    I hope I’ll never forget rule no. 1.

  • Myrko

    Reply Reply February 27, 2014


    And of course #10, too.

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