Warren Buffet Principles

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Warren Edward Buffett is an American business magnate, investor, speaker and philanthropist who serves as the chairman and CEO of Berkshire Hathaway.

“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be a more productive than energy devoted to patching leaks.”

“It is not necessary to do extraordinary things to get extraordinary results.”

“What we learn from history is that people don’t learn from history.”

“Chains of habit are too light to be felt until they are too heavy to be broken.”

“There seems to be some perverse human characteristic that likes to make easy things difficult.”

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

“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.”

“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.”

“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.”

“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.”

“In the short term, the market is a popularity contest. In the long term, the market is a weighing machine.”

“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”

“Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing.”

“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.”

“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.”

“I am a better investor because I am a businessman, and a better businessman because I am an investor.”

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”

“The difference between successful people and really successful people is that really successful people say no to almost everything.”

“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.”

“Make reading a habit, I just sit in my office and read all day.”

“Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No.1.”

“If you’re in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%.”

“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.”

“The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.”

“Without passion, you don’t have energy. Without energy, you have nothing.”

“Can you really explain to a fish what it’s like to walk on land? One day on land is worth a thousand years of talking about it, and one day running a business has exactly the same kind of value.”

“Only when the tide goes out do you discover who’s been swimming naked.”

“In the business world, the rear-view mirror is always clearer than the windshield.”

“Risk comes from not knowing what you’re doing.”

“Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.”

“The rich invest in time, the poor invest in money.”

“If past history was all that is needed to play the game of money, the richest people would be librarians.”

“Never invest in a business you can’t understand.”

“Only when you combine sound intellect with emotional discipline do you get rational behavior.”

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