Top 10 Warren Buffett Quotes on Investing | Re-ThinkWealth.com
15 September 2021
What Kind of Person is Warren Buffett?
From my experience, Warren is a very rational person who has done very well in investments. In fact, he might be the most successful investor of all time.
As of now, his net worth is in excess of roughly 100 billion USD – and that is after giving more than 40 billion USD away as charity.
If Buffett has not given out so much as a charity, he might be the world’s richest person already.
Since 1970, he has been the chairman and the largest owner of Berkshire Hathaway, which over time became his investment holding company.
In this article, we will explore what I view as his top 10 quotes on investing.
Top 10 Warren Buffett Quotes on Investing
No 1. “The stock market is a device to transfer money from the impatient to the patient.”
This quote has got to be placed at number one because oftentimes, the big money in my view, is in buying right and holding on. It is not in timing the market but instead, our time in the market.
Of course, in the first place, we have to buy the right stock at the right price, if not, patience is useless if we have bought wrong in the first place.
No 2. “We don’t get paid for activity, just for being right. As to how long we’ll wait, we’ll wait indefinitely”
Number 2 further emphasizes quote number 1 – which is: we get paid for being right.
Not for activity.
This means that if we are wrong in the first place due to a lack of proper analysis or whatever reason, waiting is futile.
No 3. “Time is the friend of the wonderful company, the enemy of the mediocre.”
If we bought a lousy company in the first place, the longer we wait, the worse off the company could be – and the worse off our investment would be.
An example of a company I am vested in for a long time now is Facebook, they continue to innovate and time is indeed their friend and my friend. Over a period of more than 3 years since I first bought it, it has more than doubled in price.
No 4.”Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.”
Warren has been such a successful investor because he was not an overly diversified investor. He is a concentrated investor who focuses on his best ideas. And that’s how I operate too.
When great opportunities come, I fully support the idea of investing big instead of small. Put out the bucket, not the thimble.
No 5.”Widespread fear is your friend as an investor because it serves up bargain purchases.”
No 5 links to no 4. When people are fearful, that is usually the best time to be greedy.
As of today, my biggest stock position is in Carnival Cruise Call Options. And it is precise that people hate it now, that I go big on it. I might be wrong, but it is a bet I feel comfortable with.
No 6. “You can’t produce a baby in one month by getting nine women pregnant.”
The point of this quote is: some things just take time. In stock investing, patience is crucial.
If we cannot cultivate the good habits of patience, then stock investing might not be for us.
No 7.”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.”
This quote no 7 basically says, if we make a mistake, quickly admit it and focus the energy on getting out of the investments. Instead of hoping that we will still be right and invest more money into it.
No 8. “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.”
I have always said that our mindset, temperament, characters are all necessary ingredients for investment success. For me, I do meditation twice a day and exercise regularly as a way for me to have equanimity in the face of life, and investments.
No 9. “Never invest in a business you cannot understand.”
Quote, no 9 is fairly straightforward, we should only invest in businesses we understand. If not, it is gambling.
No 10. “One thing that could help would be to write down the reason you are buying a stock before your purchase. Write down “I am buying Microsoft at $300 billion because…” Force yourself to write this down. It clarifies your mind and discipline.”
Write down the reason why we buy a certain stock at a certain market capitalization. It will crystallize our thinking process.
Investment in stocks in my view is an endeavor that consists of both art and science.
And it requires our “whole-self” – body and mind to be in the right state and well-aligned. So that we can not only create the fulfilling life that we want but also be able to see reality as it is, instead of what we want it to be.
And seeing reality accurately, and act accordingly and rationally is fundamental to being a good investor.
The information provided is for educational and general information purposes only and is not intended to be personalized investment or financial advice. We make no promises as to the accuracy or usefulness of the information we present.
Important: Please read our full disclaimer.
I am/we are long CCL & FB. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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Chris Lee Susanto
Chris started investing in stocks early at age 21 and is a big proponent of business-like stock investing – a mixture of both value and growth investing. He invests in companies where there is value to be found (as long as it is still within his circle of competence), be it a turnaround, depressed, value, or quality growth company (compounders). He either buys the stock outright or he profits through selling put or selling call options – or buying call options (buying and selling options are especially dangerous for those who do not know how to properly execute it).
Some of the places where Chris has been invited to speak or have added value as a mentor or writer includes Singapore Polytechnic, SMU Institute of Innovation and Entrepreneurship (IIE), Dollars and Sense, The New Savvy, Value Walk Blog, Investment Moats, NUS Tembusu College, NUS Investment Society, CGS-CIMB Singapore, Singapore Financial Conference by NTU IIC, The Financial Coconut Podcast, Money FM 89.3 and Internationally in Myanmar.
He is also a practitioner of Transcendental Meditation and Mindfulness practice. He also advocates regular exercise, enough sleep, and nutritious food as part of our lifestyle as an investor.
As of the time of this writing, Chris is focusing on setting up his MAS Licensed Fund with the goal to beat the market over the long run.
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