Quotes on Investing

“I think that, every time you see the word EBITDA, you should substitute the words "bullshit earnings".”

“We will make bold rather than timid investment decisions where we see a sufficient probability of gaining market leadership advantages.”

“Any business plan won’t survive its first encounter with reality. The reality will always be different. It will never be the plan.”

“It takes character to sit with all that cash and to do nothing. I didn't get top where I am by going after mediocre opportunities.”

“We trade real estate for technology (which gets cheaper and more capable every year).”

“It’s not possible for investors to consistently outperform the market. Therefore you’re best served investing in a diversified portfolio of low-cost index funds [or exchange-traded funds].”

“We both insist on a lot of time being available almost every day to just sit and think. That is very uncommon in American business. We read and think. So Warren and I do more reading and thinking and less doing than most people in business.”

“Warren talks about these discounted cash flows. I’ve never seen him do one.”

“Why focus on cash flows? Because a share of stock is a share of a company’s future cash flows, and, as a result, cash flows more than any other single variable seem to do the best job of explaining a company’s stock price over the long term.”

“If you’re long-term oriented, customer interests and shareholder interests are aligned.”

“what’s good for customers is good for shareholders.”

“No business can continue to shrink. That can only go on for so long before irrelevancy sets in.”