Surely you have heard of Warren Buffett, one of the richest people in the world and considered by many as the best investor in history. To give you an idea, you have achieved an average annual composite return of over 23% for almost 50 years at the head of your Berkshire Hathaway company, which is not bad!
I do not know if it will be the best investor there has been, but what I can tell you is that this man seems to know what is being done, since to accumulate and keep a fortune of more than $ 60,000 million through the investment you have to know something about the subject ...
I do not know him in person, but from what I have read (although he has not written a book directly, many books have been written about him) and what I have heard him say in interviews, conferences and shareholders meetings I think he has a philosophy of very solid investment, full of common sense and contrary to what is done in the money industry.
So today I want to show you what for me are your 25 best sentences. But not only that, but also I want to contribute in each one of them a few lines to make clear the valuable lesson that is transmitting to us.
Believe me, none is wasted. If you are starting in the stock market they will serve you to build a solid foundation on which to continue learning and, if you already have experience, you will find it very useful to remind you of the fundamentals of the investment.
Also, if you read them carefully you will realize that they not only apply to the investment, but also to many other areas of life.
1. "Rule No. 1: do not lose money. Rule No. 2: Do not forget Rule No. 1 ".
What Warren Buffett reminds us is that to be successful in investing we must avoid the big mistakes that make us lose money, so we must first secure our money and then focus on profitability.
2. "Large fortunes are not made with a portfolio of 50 shares."
Buffett is in favor of concentrating his portfolio in relatively few excellent businesses instead of diversifying among a lot of less good businesses. He wants to use his money to buy only what he considers the best businesses.
3. "We would have to invest for a lifetime."
With this phrase, he reminds us that investing in the long term allows us to enjoy the greatest benefits thanks to the power of compound interest .
4. "The market helps those who know what they do, but does not forgive those who do not know."
On this occasion Warren Buffett reminds us of the importance of training before participating in the Stock Exchange. He also warns us that if we do not know what we are doing, the market will not forgive our mistakes, and that we will pay for them with our money.
5. "You do not have to do extraordinary things to get extraordinary results."
The idea behind this sentence is that if we focus on doing things well and avoid big mistakes, invest in the long term and take advantage of the compound interest that the passage of time offers us, we can achieve very good results with our investments without having to be geniuses from the investment.
6. "With a million dollars and enough" puffs "you can go bankrupt in a year."
As I always tell you, you must be able to make your own investment decisions without depending on others. I'm glad to know that Warren Buffett also agrees on this point.
7. "It is good to learn from one's own experience, but also from others."
Yes, it is very good to learn from your own experience. But why pay for our money mistakes we can avoid learning from others? That's why I want to share with you 5 mistakes that I made in the Stock Market and that I paid with my money so that you do not make them.
8. "Never ask a hairdresser if we need a haircut."
Buffett warns us that we must be very clear about our objectives so as not to let others fool us. The money industry lives in part on the investment recommendations, so they will always have a recommendation to give us. Remember to do your own analysis and make your own investment decisions based on your own rules.
9. "If we find more than one fantastic business per year, we're probably cheating."
The fantastic investment opportunities, formed by good businesses that are sold at very cheap prices, do not meet frequently, but only occasionally. We are only going to find several of these opportunities at the same time when the stock market is in a deep depression, which does not happen every year.
10. "Wall Street gets its benefits from the activity, but the investor gets it from inactivity."
Once again, Warren Buffett reminds us that the money industry makes money every time we buy and sell shares or other financial products. However, we as investors earn money when we buy good deals at a good price and stay with them indefinitely.
11. "In life you only need to do a few things well and avoid big mistakes. In the investment it is the same."
Buffett again insists on the importance of first limiting the risk of our investments with a good margin of safety to secure our money and then focus on the profitability we want to achieve.
12. "The less prudence the others show, the more prudent we must be."
If we want to achieve results above the average, we must do just the opposite of the majority. We must, therefore, buy cheap when everyone wants to sell and not buy when everyone wants to buy expensive. Seriously, buy cheap and do not sell. It's that simple, that's how profitable.
13. "I am greedy when the rest are afraid and I am afraid when the rest are greedy."
In essence it is the same as in the previous sentence. Warren Buffett buys (he is greedy) when the rest are afraid and want to sell and do not buy (he is afraid) when the rest are greedy and want to buy expensive.
14. "Smart investor avoids greed and lets fear create opportunities."
As I always tell you, avoid buying expensive (most of the time) and focus on buying only when the prices are cheap enough to offer you a good investment opportunity, which will occur in the midst of stock market cracks and widespread fears. Let's see, now that the teacher tells you, you pay more attention to it than to me.
15. "The best time to buy a business is when the rest of the people are selling it, and not when they are buying it."
95% of the time the shares are expensive, so they do not represent good investment opportunities. Forget buying periodically or when you have cash available and focus on buying only when prices are low enough and the rest of the people are not buying, but want to sell.
Seriously, most people will not get above-average profitability because they will not have enough patience to wait for good opportunities. Do not let the money burn your hands and have a patience above average to get a good return on your money.
16. "Do not look back. You can only live forward. There is so much ahead that it makes no sense to think about what we could have done. "
It is good to learn from mistakes, but do not spend the day regretting that loss or that you did not buy at minimums or that you did not sell when the price multiplied by three. You make your own decisions based on the information you have at that moment, so learn what you have to learn from each situation and keep evolving.
17. "The investment must have a rational basis. If a business is not understood, better avoid it. "
Warren Buffett stays away from the businesses he does not understand, since to invest in them the risk of his portfolio would increase. You must stay within your circle of competence, that is, within what you really understand and can rationally analyze.
18. "Price is what you pay for; value is what you get."
There can not be a clearer definition to differentiate between the concepts of price and value. Most people confuse price and value, so when their shares fall in price they get scared thinking that it is worth less, when it is really worth the same as the previous day and can be bought cheaper. Once again, it is about being rational in an irrational market.
To make sure you do not fall into the trap of confusing price and value, I recommend reading the dangerous trap of market value and how to avoid it.
19. "History teaches us that we do not learn from history."
The generalized irrationality that creates bubbles and crack in stock exchanges that are repeated periodically teaches us that we do not learn from history. So if you are able to learn from it you can be greedy when the rest are afraid and afraid when the rest is greedy.
20. "Uncertainty is really the long-term investor's friend."
If there were no uncertainty, people would not be scared and would not be willing to sell the shares of fantastic businesses at bargain prices. The fear of the uncertainty of those who invest and speculate in the short term prepares the ground for good investments for the long-term investor.
21. "You can not buy what is popular and be right."
Warren Buffett tells us, once again, that you can not buy shares that are popular, and therefore will be expensive, and expect to make a good investment. Remember to buy when others want to sell, remember to buy cheap.
22. "The best way to get rich is not to lose money."
Keep in mind that if you lose half of your money you must double it to recover it. Avoid losing money and focus on getting a good return on your money over time. Your portfolio and your financial well-being will thank you.
Also, keep in mind that if you avoid big mistakes, the chances of losing all your money in the stock market will be almost nil.
23. "Good business is not always a good purchase, but a good place to look."
As I always tell you, "the best business in the world can become the worst investment in the world if you pay too high a price for it". Look, you already have an extra phrase that, although it does not come from the teacher, is also common sense.
When you find a good business do not go head first to buy your shares. Instead, wait for the fear of others to offer you their really cheap actions, thus preventing an excellent business from becoming your worst investment.
24. "It is too difficult to make hundreds of good decisions throughout a lifetime. I prefer to position my portfolio so that I only have to make a few of those smart decisions."
Again, Warren Buffett reminds us that if we diversify our portfolios among many different actions we will have to make many good decisions. If we focus on fewer businesses, however, with a few good decisions we will achieve our results, as long as we avoid making big mistakes.
25. "Our investment attitude fits with our personality and with the way we want to live our lives."
The investment is a way to get to live our way, and the way to invest with which we feel more comfortable will fit with our personality. That is why there are no investment philosophies better than others, but more appropriate according to our way of being and our objectives.
As you can see, none of these phrases is wasteful. As I see it, they are a source of wisdom for both investment and life, and that is a compilation of common sense, the least common of the senses.
And now tell me, which of the phrases that I have presented today do you like more? What other phrases of the famous investor do you know? Share them with your comments.
I do not know if it will be the best investor there has been, but what I can tell you is that this man seems to know what is being done, since to accumulate and keep a fortune of more than $ 60,000 million through the investment you have to know something about the subject ...
I do not know him in person, but from what I have read (although he has not written a book directly, many books have been written about him) and what I have heard him say in interviews, conferences and shareholders meetings I think he has a philosophy of very solid investment, full of common sense and contrary to what is done in the money industry.
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| Time.com |
So today I want to show you what for me are your 25 best sentences. But not only that, but also I want to contribute in each one of them a few lines to make clear the valuable lesson that is transmitting to us.
Believe me, none is wasted. If you are starting in the stock market they will serve you to build a solid foundation on which to continue learning and, if you already have experience, you will find it very useful to remind you of the fundamentals of the investment.
Also, if you read them carefully you will realize that they not only apply to the investment, but also to many other areas of life.
1. "Rule No. 1: do not lose money. Rule No. 2: Do not forget Rule No. 1 ".
What Warren Buffett reminds us is that to be successful in investing we must avoid the big mistakes that make us lose money, so we must first secure our money and then focus on profitability.
2. "Large fortunes are not made with a portfolio of 50 shares."
Buffett is in favor of concentrating his portfolio in relatively few excellent businesses instead of diversifying among a lot of less good businesses. He wants to use his money to buy only what he considers the best businesses.
3. "We would have to invest for a lifetime."
With this phrase, he reminds us that investing in the long term allows us to enjoy the greatest benefits thanks to the power of compound interest .
4. "The market helps those who know what they do, but does not forgive those who do not know."
On this occasion Warren Buffett reminds us of the importance of training before participating in the Stock Exchange. He also warns us that if we do not know what we are doing, the market will not forgive our mistakes, and that we will pay for them with our money.
5. "You do not have to do extraordinary things to get extraordinary results."
The idea behind this sentence is that if we focus on doing things well and avoid big mistakes, invest in the long term and take advantage of the compound interest that the passage of time offers us, we can achieve very good results with our investments without having to be geniuses from the investment.
6. "With a million dollars and enough" puffs "you can go bankrupt in a year."
As I always tell you, you must be able to make your own investment decisions without depending on others. I'm glad to know that Warren Buffett also agrees on this point.
7. "It is good to learn from one's own experience, but also from others."
Yes, it is very good to learn from your own experience. But why pay for our money mistakes we can avoid learning from others? That's why I want to share with you 5 mistakes that I made in the Stock Market and that I paid with my money so that you do not make them.
8. "Never ask a hairdresser if we need a haircut."
Buffett warns us that we must be very clear about our objectives so as not to let others fool us. The money industry lives in part on the investment recommendations, so they will always have a recommendation to give us. Remember to do your own analysis and make your own investment decisions based on your own rules.
9. "If we find more than one fantastic business per year, we're probably cheating."
The fantastic investment opportunities, formed by good businesses that are sold at very cheap prices, do not meet frequently, but only occasionally. We are only going to find several of these opportunities at the same time when the stock market is in a deep depression, which does not happen every year.
10. "Wall Street gets its benefits from the activity, but the investor gets it from inactivity."
Once again, Warren Buffett reminds us that the money industry makes money every time we buy and sell shares or other financial products. However, we as investors earn money when we buy good deals at a good price and stay with them indefinitely.
11. "In life you only need to do a few things well and avoid big mistakes. In the investment it is the same."
Buffett again insists on the importance of first limiting the risk of our investments with a good margin of safety to secure our money and then focus on the profitability we want to achieve.
12. "The less prudence the others show, the more prudent we must be."
If we want to achieve results above the average, we must do just the opposite of the majority. We must, therefore, buy cheap when everyone wants to sell and not buy when everyone wants to buy expensive. Seriously, buy cheap and do not sell. It's that simple, that's how profitable.
13. "I am greedy when the rest are afraid and I am afraid when the rest are greedy."
In essence it is the same as in the previous sentence. Warren Buffett buys (he is greedy) when the rest are afraid and want to sell and do not buy (he is afraid) when the rest are greedy and want to buy expensive.
14. "Smart investor avoids greed and lets fear create opportunities."
As I always tell you, avoid buying expensive (most of the time) and focus on buying only when the prices are cheap enough to offer you a good investment opportunity, which will occur in the midst of stock market cracks and widespread fears. Let's see, now that the teacher tells you, you pay more attention to it than to me.
15. "The best time to buy a business is when the rest of the people are selling it, and not when they are buying it."
95% of the time the shares are expensive, so they do not represent good investment opportunities. Forget buying periodically or when you have cash available and focus on buying only when prices are low enough and the rest of the people are not buying, but want to sell.
Seriously, most people will not get above-average profitability because they will not have enough patience to wait for good opportunities. Do not let the money burn your hands and have a patience above average to get a good return on your money.
16. "Do not look back. You can only live forward. There is so much ahead that it makes no sense to think about what we could have done. "
It is good to learn from mistakes, but do not spend the day regretting that loss or that you did not buy at minimums or that you did not sell when the price multiplied by three. You make your own decisions based on the information you have at that moment, so learn what you have to learn from each situation and keep evolving.
17. "The investment must have a rational basis. If a business is not understood, better avoid it. "
Warren Buffett stays away from the businesses he does not understand, since to invest in them the risk of his portfolio would increase. You must stay within your circle of competence, that is, within what you really understand and can rationally analyze.
18. "Price is what you pay for; value is what you get."
There can not be a clearer definition to differentiate between the concepts of price and value. Most people confuse price and value, so when their shares fall in price they get scared thinking that it is worth less, when it is really worth the same as the previous day and can be bought cheaper. Once again, it is about being rational in an irrational market.
To make sure you do not fall into the trap of confusing price and value, I recommend reading the dangerous trap of market value and how to avoid it.
19. "History teaches us that we do not learn from history."
The generalized irrationality that creates bubbles and crack in stock exchanges that are repeated periodically teaches us that we do not learn from history. So if you are able to learn from it you can be greedy when the rest are afraid and afraid when the rest is greedy.
20. "Uncertainty is really the long-term investor's friend."
If there were no uncertainty, people would not be scared and would not be willing to sell the shares of fantastic businesses at bargain prices. The fear of the uncertainty of those who invest and speculate in the short term prepares the ground for good investments for the long-term investor.
21. "You can not buy what is popular and be right."
Warren Buffett tells us, once again, that you can not buy shares that are popular, and therefore will be expensive, and expect to make a good investment. Remember to buy when others want to sell, remember to buy cheap.
22. "The best way to get rich is not to lose money."
Keep in mind that if you lose half of your money you must double it to recover it. Avoid losing money and focus on getting a good return on your money over time. Your portfolio and your financial well-being will thank you.
Also, keep in mind that if you avoid big mistakes, the chances of losing all your money in the stock market will be almost nil.
23. "Good business is not always a good purchase, but a good place to look."
As I always tell you, "the best business in the world can become the worst investment in the world if you pay too high a price for it". Look, you already have an extra phrase that, although it does not come from the teacher, is also common sense.
When you find a good business do not go head first to buy your shares. Instead, wait for the fear of others to offer you their really cheap actions, thus preventing an excellent business from becoming your worst investment.
24. "It is too difficult to make hundreds of good decisions throughout a lifetime. I prefer to position my portfolio so that I only have to make a few of those smart decisions."
Again, Warren Buffett reminds us that if we diversify our portfolios among many different actions we will have to make many good decisions. If we focus on fewer businesses, however, with a few good decisions we will achieve our results, as long as we avoid making big mistakes.
25. "Our investment attitude fits with our personality and with the way we want to live our lives."
The investment is a way to get to live our way, and the way to invest with which we feel more comfortable will fit with our personality. That is why there are no investment philosophies better than others, but more appropriate according to our way of being and our objectives.
As you can see, none of these phrases is wasteful. As I see it, they are a source of wisdom for both investment and life, and that is a compilation of common sense, the least common of the senses.
And now tell me, which of the phrases that I have presented today do you like more? What other phrases of the famous investor do you know? Share them with your comments.
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