Top 10 Warren Buffett Quotes on Investing and Famous Lines!
Top 10 Warren Buffett Quotes on Investing and Famous Lines!
Handpicked top 10 Warren Buffett Quotes on Investing: Warren Buffett, the most renowned investor of all time and one of the richest men on earth, needs no introduction. He’s is probably the most famous figure when it comes to the investment world. This veteran investor and CEO of Berkshire Hathaway, an American multinational conglomerate holding company is known for his investing prowess.
As the world’s greatest stock market investor, people constantly look at Warren Buffett for investment advice. A quick google search will give you millions of results about the famous quotations by the legendary investor. Moreover, this clever stock picker has also an amazing wit & sense of humor. The philanthropist investor, who has pledged to give 99% of his total worth to the philanthropic cause, has many of the famous quotations on investing that are worth sharing.
Today, we are covering the top 10 Warren Buffett Quotes that will change the way you look at investing. Here it goes.
Top 10 Warren Buffett Quotes on Investing.
Here is the collection of the top 10 Warren Buffett Quotes on investing that will motivate and guide you in your stock market journey:
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1. “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”
This is probably the most popular quote by Warren Buffett and also his most important saying. The biggest rule for success in stock market investing is never to lose money. You need money to make money. Further, if you lose it, then it takes double the effort to reach even at your previous highs. Therefore, Rule No 1 and 2 is to never lose your money.
2. “Price is what you pay. Value is what you get.”
Through this quote, Warren Buffett advocates that Price and value are two different things. You can overpay to buy a product or underpay to get the same one (value investing). Always look into the value that you’re getting before paying the price.
3. “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
This is a famous Warren Buffett quote on long-term investing. Here, Warren Buffett educates his audience that when you’ve bought a good stock for the long term, it doesn’t matter what’s happening in the market currently or short-term fluctuations in the market prices. Always look for a longer vision.
4. “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
In simple words, this Warren Buffett quote advocates avoiding herd mentality or herding. Do not blindly follow the crowd. Buy on the dips when everyone is selling as you’ll get good discounted prices on the shares. Sell, when everyone wants to buy as you’ll get a good selling price on the same shares.
5. “Risk comes from not knowing what you’re doing.”
This is the best Warren Buffett Quote on risk-taking. If you don’t know swimming, don’t jump in 20 ft water. A similar rule is applicable in stock market investing. Before you invest in stocks, get at least basic financial education. You are at the highest risk when you blindly invest in a stock without knowing anything about it.
6. “If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.”
Making short-term profits is really difficult unless you’re trained to do so. Do not get confused between investing and trading. Do not jump in stock just to book small profits and call it investing. When you’re investing, look for the long term.
7. “We don’t have to be smarter than the rest. We have to be more disciplined than the rest.”
The stock market is very tempting as Greed and fear run it. This famous quote by Warren Buffett educates that it’s more important to be disciplined in the stock market, than rather being just smart if you want to make consistent money in the stock market. Consistency needs discipline.
8. “Cash combined with courage in a time of crisis is priceless.”
When there is an amazing opportunity in the market, you need two things. First, enough cash or financial ability to take that call. And second, the courage to pursue that opportunity. This Warren Buffett Quotes advocates that a combination of good financial ability and courage can do wonders in the stock market.
9. “If you have more than 120 or 130 I.Q. points, you can afford to give the rest away. You don’t need extraordinary intelligence to succeed as an investor.”
Stock market investing is not rocket science. This Warren Buffett quote educates that you do not need to be supersmart to invest and make money from the stock market. Anyone can make good returns from the market if they are willing to learn and are disciplined.
10. “Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.”
This final quote by Warren Buffett advocates the risk involved in stock market investing. There are many factors that govern the stock price movement. There may be situations when one of your holding stocks may decline up to even 50% due to some bad news or unpredicted news. If you’re investing in the stock market, you should have enough risk appetite to move over it and should not be panic-stricken.
Quick Note: This rule may sound a little contradictory to the first quote discussed in this post. However, the first quote generally advocates about the net worth or the entire portfolio of the investor, not an individual stock. A single stock from your portfolio may decline significantly and you should have the risk apetite to handle it.
That all for the top 10 Warren Buffett quotes on investing. I hope these quotes from this oracle of Omaha have some impact on you and can also brighten your path to become a successful stock market investor. We have included most of the best quotes by Warren Buffett in this top 10 Warren Buffett quotes on investing list.
Further, if you think that we missed any popular Warren Buffett quote, please let us know by commenting below. We’ll love to add that quote to our list too. Have a great day and Happy investing.
Kritesh (Tweet here) is the Founder & CEO of Trade Brains & FinGrad. He is an NSE Certified Equity Fundamental Analyst with +7 Years of Experience in Share Market Investing. Kritesh frequently writes about Share Market Investing and IPOs and publishes his personal insights on the market.
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