WARREN BUFFET QUOTES .

WARREN BUFFET QUOTES .

Known as the "Oracle of Omaha," Warren Buffett is one of the most successful investors of all time.

Friends he is an institution in himself, real investors ( I'm not talking about traders ) have always been big follower of his style of investing.

Mr BUFFET lives according to a set of values that he uses to invest and make his life decisions. I'm sure these values will be of great use for you too.

So let's take a look at some of his very famous quotes and decode it.

1. Never invest in a business you cannot understand.

You should never put your money on anything that you find difficulty in understanding be it ,business or shares or any other form of financial instrument.

2. No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.

You need to give time to yourself be it in investing or in life . There are some things on which you have very little control . We all have heard of the adage ROME WAS NOT BUILT IN A DAY .

3. Stop trying to predict the direction of the stock market, the economy, interest rates, or elections.

People have the habit of timing the markets , but he says if you want to make wealth in the long run , you need not be dettered by the distractions. 

4. I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.

Do you know the biggest reason why a retailer makes loss in stock  markets? Its because he buys when markets are on a roll because of greed to make more profits and sells under panic when markets are falling. 

Mr BUFFET wants us to do the opposite buy when markets are falling and sell when markets are on a rise.

5. Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.

Here he says stock markets are not a cup of tea of everyone , it's not a place for light hearted person , there are times because of the volatility your portfolio can erode to a great extent. 

So only if you can digest the losses you should enter stock markets. 

6. Diversification may preserve wealth, but concentration builds wealth.

Too much of DIVERSIFICATION can be dangerous in the journey of making wealth . You do not want hundreds of stocks in your portfolio to make wealth even a couple of good stocks can do the magic for you.

So choose your stocks wisely. 

7. It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

While buying stocks, valuations hold a very important place.

Only buying good stocks will not help you much but buying good stocks cheap will certainly help you in long run.

8. Do a lot of reading.

The one who dares to invest in markets , should never cease to read .

Even at this age Mr BUFFET puts lots of hours in reading balance sheets , annual reports etc .

9. Our favorite holding period is forever.

Mr BUFFET wants us to do good study and invest in good stocks that we would be happy to hold for long term.

He says for him long term is forever, this could be understood from the fact that he has been holding shares of companies like COKE from last 50 years or so.

10. It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.

Character/ goodwill plays a vital role in your life as well as your business. 

Always try to maintain a clean image in the eyes of public , don't do any thing stupid to ruin it. 

11. Honesty is expensive, don't expect it from cheap people. 

In this world where every one is chasing targets you are bound to come across people who will try to make gains at the cost of your losses.

So be alert while dealing with people. 

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