Warren Buffett says

“Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in the absence of any market.”

—Warren Buffett

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Quotes on Investing Warren Buffett on Investing

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“If options aren't a form of compensation, what are they? If compensation isn't an expense, what is it? And, if expenses shouldn't go into the calculation of earnings, where in the world should they go?”

—Warren Buffett

“From this irritating reality comes The First Law of Corporate Survival for ambitious CEOs who pile on leverage and run large and unfathomable derivatives books: Modest incompetence simply won’t do; it’s mindboggling screw-ups that are required.”

—Warren Buffett

“Never depend on single income. Make investment to create a second source.”

—Warren Buffett

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

—Warren Buffett

“The most important investment you can make is in yourself.”

—Warren Buffett

“Intensity is the price of excellence.”

—Warren Buffett

“Especially favourable future prospects were regarded by shrewd investors as something to look for but not to pay for”

—Warren Buffett

“We need a moderately-priced stock market… The market, like the Lord, helps those who help themselves. But, unlike the Lord, the market does not forgive those who know not what they do. For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.”

—Warren Buffett

“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].”

—Charlie Munger

“For these investors, it would have been far better if Orville had failed to get off the ground at Kitty Hawk: The more the industry has grown, the worse the disaster for owners.”

—Warren Buffett

“In the 54 years (Charlie Munger and I) have worked together, we have never forgone an attractive purchase because of the macro or political environment, or the views of other people. In fact, these subjects never come up when we make decisions.”

—Warren Buffett

“Wide diversification is only required when investors do not understand what they are doing.”

—Warren Buffett

“Derivatives are financial weapons of mass destruction.”

—Warren Buffett

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

—Warren Buffett

“Don't work for money, make money work for you.”

—Warren Buffett