Warren Buffett is the most successful investor in 20th century. He has been ranked by Forbes as the richest person in the world in some years. But what makes him very special and unique is his communication with other people. He visited many different Universities and spent time talking and teaching the students a lot of valuable things about investing, but also life in general.
These are some of his best quotes in my opinion:
1. Don’t swing at everything.
Don’t just swing at everything only because you can. Wait for your pitch, then swing. Warren Buffett is that rich because he makes the right decisions. If you make a profit once by doing something, it doesn’t mean that if you do it again it will make you a profit again. Don’t rush with decisions, be patient, think carefully, then SWING!
2. Price and value are not the same.
As Ben Graham told him, “Price is what you pay, value is what you get”. Make sure you know the value of what you’re buying before you pay the price. It doesn’t matter if you’re buying stocks or socks; you need to make sure you’re paying the right price for the right value. Either you should pay the right price or less of course.
3. Someone’s sitting on the shade today because someone planted a tree long time ago.
Think about the future. Someone was thinking about yours, you should think about the future of the next generations.
4. Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
This is probably one of his best and most popular quotes. You should think before you spend your money. Sometimes we spend money on worthless things that we don’t need and therefore we’ve lost our money.
5. It is better to hang out with people better than you; you’ll drift in that direction.
This is my favorite Warren Buffett quote. If you hang out with people that are not better than you, you are probably going to be the same person. It is them who are going to learn something from you. But if you want to improve as a person, then hang out with people who are better than you.
6. I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
Before choosing which way to go, make sure it’s the easiest one that will give you the result you want. This is mostly a quote for investors. Sometimes they decide to risk and get rich during the night, instead of choosing to become rich in few days.
7. The investor of today does not profit from yesterday’s growth.
This quote teaches us to not always look in the past. Just because something happened yesterday, it doesn’t mean it will happen today too. Yesterday, today and tomorrow are very different. Don’t compare them, unless you want to make a bad decision.
We challenge you to tweet us @Attitudes4Invtn and share what you believe is the most powerful piece of investing advice from this article!