You are probably familiar with Warren Buffett if you’re reading this. If you’re new to investing, you might not recognize him.
Who is Warren Buffett, and what does he do?
He is an investor and philanthropist who has become a billionaire by himself. He also serves as the CEO of Berkshire Hathaway. He is one of the world’s most successful investors and has also promised to give away 95% of his fortune.
He is highly respected in the investing world and has provided the world with some incredible knowledge. This is why I decided to write this article.
Simple, Yet Brilliant Warren Buffett Quotes
I don’t think you are alone, but I love “nerding” out on quotes by other people. It could be advice from celebrities, well-known people or business leaders.
Warren Buffett is the man to listen to when it comes time for investing, money and life.
Here are some of my favorite Warren Buffett quotes, along with some tips on how to apply them in your personal life and finances.
Maybe you have more quotes than I do or perhaps just want to save some for your desk. You will find something useful below.
You can find out more about Warren Buffett by reading his bio.
“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1”
The simplicity and cheeky tone of this Warren Buffett quotation always makes me smile.
The world of investing still has a lot to learn.
Stock market fluctuations will occur, but you should not let your emotions take over. This is a sure way to lose your money and have an impact on your investment.
“Buy only what you would be happy to keep for 10 years if the markets were closed.”
Buffett is not interested in playing games or timing the markets. He’s a long-term investment. Focus on investing in investments you can comfortably hold for a very long time.
It’s something I have done with my own investments. If I am unsure, do not understand something or would not trust it, then it isn’t worth investing at this time.
This quote is a must-read for every new investor.
“Business schools tend to reward complex behaviors more than simple ones, but simple behaviour is more effective.”
This is one of my favorites and it’s accurate. Sometimes simplicity is better than complexity.
Investing is 100% accurate.
Investing is often perceived as complex, or as requiring a large amount of money, stocks, bonds etc. To have a fantastic portfolio.
Many investors and researchers have proven that diversification is the best option. My Roth IRA only has four index funds. Easy to manage, diversified, and delivers results.
The most important thing for an investor to have is temperament and not intelligence. You must have a temperament where you don’t enjoy being in the majority or the minority.
Warren Buffett’s advice to new investors is a must-read, regardless of whether they are investing in the stock market, other assets or both.
Many people believe that to succeed in investing, you need to be an expert. Investing success is not only about being good with money, but also mastering your emotions.
You will have headaches if you let the media, your friends, or family influence your decisions, or if you make them based on market conditions. You must be calm and not follow the stock market during storms.
If you pay 1 percent in fees and your returns are 7 or 8 percent, it makes a huge difference to how much you will have for retirement.
It was incredible to me when I first learned about investing what 1-2% of fees could do for your investments. It may not seem much at first but after years of compounding interest, you will be surprised!
It is best to reduce the amount of fees you pay when investing. This is one of the reasons I have stuck with Vanguard’s low-cost index fund for so many years.
Sign up for Blooom if you have a retirement plan. The free 401k analysis tool provides suggestions based on goals and helps to identify hidden fees. Register for free.
The years to come will bring major market drops — and even panic — that will impact virtually all stocks. “No one can predict when these traumas are going to occur.”
Stock markets can be roller coaster rides. It’s part of investing to expect corrections and bear markets. It’s impossible to predict when and how long these events will last.
You can do some technical analysis, and you may be able to make some accurate estimations, but trying time the market is a bad idea.
Media will make you think that they are able to predict the future. The media will make you believe that they know when these things will happen.
You can be prepared by staying diversified and investing consistently, even if there are still years before you retire.
If you enjoy spending six to eight working hours per week on investing, then do it. If not, dollar-cost-average into index funds.
Another misconception I have is that investing requires a lot time. Warren Buffet said that if it’s something you enjoy doing, then that’s fine.
You don’t need to.
The 3 Fund Portfolio simplifies your stock investment. You can invest consistently every month/week, or at whatever frequency you choose — regardless of whether the market is going up or down. This is dollar cost averaging.
It is the same strategy that I used, but my retirement portfolio has four funds. But I invest consistently in it (I have a Roth IRA).
“Investing in one’s own education is the best way to prepare for the future of economics.” You will have the best chance of securing your future if you start studying and learning at an early age.
This quote is how I learned about personal finance and investing. You’ll be surprised at how much your future wealth can be influenced by having the right mindset.
It’s never too early to learn and improve. It’s better to start young so that you can make money mistakes, and then use the time to compound your investment.
Before 2014, I had little knowledge about the stock market and investing. After reading books and learning myself, I am now able to manage everything.
But learning never ends. I still read new books, and reread old ones. You’ll see the results if you dedicate just an hour or so a week.
Keep things simple, and don’t go for the fences. “When promised quick profits, say no quickly.”
There are many good things about the investment industry. However, there are also some shady activities. False promises about massive returns, getting rich in just a few short days, or that this company is the next Amazon.
Ignore and ignore these articles or emails. Nobody can guarantee you the future of these investments and no one knows exactly what will happen.
Keep your investments simple and take your time. If you want to get the adrenaline rush, investing should be boring.
If you reach my age and no one thinks highly of you, it doesn’t matter how much money you have in your bank, because your life will be a disaster.
This should make you really think. It is also 100% accurate, in my opinion. The amount of money you earn does not determine your self-worth or value in life.
People do not form an opinion about you based on the fact that you are financially stable and have a high networth. People will remember your character, what you have done for others and how sincere you are.
Money is not everything. While it is great to work hard to earn more money and be an investor, you also want to make people feel good about you.
People who have cash equivalents today feel comfortable. They shouldn’t. They’ve chosen a bad long-term investment, one that pays almost nothing and will depreciate.
Someone has ever told you that investment is bad. You might even be putting your life at risk. This happens more often than you might think. I experienced it in my early days.
The stock market can be intimidating and the media plays into your emotions. It’s not surprising that some people feel safer with cash.
As Warren Buffett explains, inflation is the reason you’re holding on to an asset that is depreciating.
Your money does not make you money. Investing is crucial to achieving your financial goals as it allows you to reach them much faster than just collecting money and doing nothing.
If you purchase things that you don’t need, you may soon have to sell items you need.
Instant gratification, and lifestyle creep. You can spend money on things that may bring you temporary pleasure, but have no real value in the long run.
This quote is a warning to not buy things that you don’t need. You will end up paying for them in ways that you would otherwise be able to use to your advantage.
There is nothing wrong if you have a good plan to manage your finances. I have never believed that you should hoard your money and not experience life.
It’s better to be around people who are better than you. You’ll be more inclined to drift towards those who behave better than you.
This Warren Buffett quote has always made me consider more than just investing or money. This quote is also valid in my opinion.
My interest, knowledge and mindset changed dramatically once I began to surround myself with people who knew more than me. It was in terms of business, career, entrepreneurship and personal finances.
As I joined these groups, discussed these topics and asked questions, over time, my behavior changed. It is important to me that you are able to develop yourself.
“We only try to be greedy when others are afraid and fearful when they are greedy.”
I’ve read different versions of Warren Buffett’s quote in several books and articles about investing. This is a crucial piece of advice for your investment strategy.
Many people panic when everyone is afraid, saying that a bear-market is on its way or the market is down. Many people panic and start to sell or make emotional decisions.
This is the perfect time to stay calm and buy items at a discount. When people are talking about investment and buying at new highs while others are praising the market, it is time to be more cautious.
Someone is sitting in the shade because a tree was planted many years ago.
Warren Buffett said that the earlier you start, the better. Even though learning about investing is not fun, you will be happier in the long run if you start.
People will often put off things or worry about them later.
You will realize that you made a mistake by waiting. You can catch up but it will be much harder or cause anxiety as you age.
