If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.
Successful investing is anticipating the anticipations of others.
The best kept secret in the investing world: Almost nothing turns out as expected.
Our job is to find a few intelligent things to do, not to keep up with every damn thing in the world.
Do not take yearly results too seriously. Instead, focus on four or five-year averages.
When asked how he became so successful in investing, Buffett answered: 'we read hundreds and hundreds of annual reports every year.
The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market.
A public-opinion poll is no substitute for thought.
The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.
Time is on your side when you own shares of superior companies.
So this is the goal: To make money by increasing net profit, while simultaneously increasing return on investment, and simultaneously increasing cash flow.
There's no shame in losing money on a stock. Everybody does it. What is shameful is to hold on to a stock, or worse, to buy more of it when the fundamentals are deteriorating.
The advice "you never go broke taking a profit" is foolish.
The difference between the price we pay for a stock and its liquidation value gives us a margin of safety. This kind of investing is one of the most effective ways of achieving good long term results.
While some might mistakenly consider value investing a mechanical tool for identifying bargains, it is actually a comprehensive investment philosophy that emphasizes the need to perform in-depth fundamental analysis, pursue long-term investment results, limit risk, and resist crowd psychology.
Picking the right stocks is one of the hardest parts of investing, and every night on Mad Money, I try to take some of that burden off your shoulders.
In the old legend the wise men finally boiled down the history of mortal affairs into a single phrase: 'This too will pass.'
Our future rates of gain will fall far short of those achieved in the past. Berkshire's capital base is now simply too large to allow us to earn truly outsized returns. If you believe otherwise, you should consider a career in sales but avoid one in mathematics.
It just seems logical that sticking to investing in only a small number of companies that you understand well, rather than moving down the list to your thirtieth or fiftieth favorite pick, would create a much greater potential to earn above-average investment returns.
The investor of today does not profit from yesterday's growth.
In stocks as in romance, ease of divorce is not a sound basis for commitment.
Thousands of people have tried, and the evidence is clear: The more you trade, the less you keep.
The first rule is not to lose. The second rule is not to forget the first rule.
We believe that according the name 'investors' to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a 'romantic.'
Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.
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