10 Warren Buffett Investment Quotes and Famous Sayings!
Warren Buffett’s Top 10 Quotes on Investing: Warren Buffett, one of the most famous investors of all time and one of the richest people on the planet, needs no introduction. He is probably the most famous figure in the investment world. This veteran investor and CEO of Berkshire Hathaway, an American multinational conglomerate holding company, is famous for his investment skills.
Warren Buffett, the world’s greatest stock market investor, is constantly sought after for investment advice. A simple Google search will yield millions of results for the legendary investor’s famous quotes. Plus, this savvy stock picker has a surprising wit and sense of humor. Having pledged to give 99% of his total assets to charity, this philanthropic investor has plenty of famous quotes about investing to share.
Today we will cover Warren Buffett’s 10 most famous quotes that will change your investment perspective. Let’s get started.
Warren Buffett’s Top 10 Quotes on Investing.
Here are 10 investing quotes from Warren Buffett that will motivate and guide you on your stock market journey.
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1. “Rule number one: Never lose money. Rule number two: Never forget rule number one.”
This is probably Warren Buffett’s most popular quote and his most important saying. The biggest rule for success in stock market investing is to never lose money. It takes money to make money. And if you lose money, it takes twice as much effort to get back to your previous high. So rules 1 and 2 are to never lose money.
2. “Price is what you pay. Value is what you get.”
Warren Buffett argues with this quote that price and value are two different things. You can either overpay for a product or underpay for the same product (value investing). Always look at the value you are getting before you pay the price.
3. “Only buy what you would be willing to hold if the market were closed for 10 years.”
This is a famous quote from Warren Buffett about long-term investing. Here, Warren Buffett teaches his audience that when you buy good stocks for the long term, it doesn’t matter what is happening in the market or the short-term fluctuations in market prices. Always look for a longer-term vision.
4. “We try to be fearful only when others are greedy, and we try to be greedy only when others are fearful.”
In short, this quote from Warren Buffett advocates avoiding herd mentality or herding. Don’t blindly follow the crowd. Buy when everyone is selling and when the market is down. Then you can get a good discount on the stock. Sell when everyone is buying. Then you can get a good sale price for the same stock.
5. “Danger comes from not knowing what you are doing.”
This is Warren Buffett’s best quote on risk taking. If you don’t know how to swim, don’t jump into 20 feet of water. The same rule applies to stock market investing. Get at least basic financial education before investing in stocks. Investing blindly in stocks without knowing anything is the biggest risk.
6. “If you’re not willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”
It is really hard to make short term profits unless you are trained to do so. Don’t confuse investing with trading. Don’t jump into stocks to make small profits and call it investing. When investing, look for the long term.
7. “We don’t have to be smarter than other people. We just have to be more disciplined than other people.”
The stock market is very tempting because it is dominated by greed and fear. This famous quote from Warren Buffett tells us that if you want to make money consistently in the stock market, it is more important to be disciplined than just smart. Consistency requires discipline.
8. “Money combined with courage in times of crisis is priceless.”
When there is an amazing opportunity in the market, you need two things. First, you need enough cash or financial ability to take that call. Second, you need the courage to pursue that opportunity. This Warren Buffett quote argues that a combination of good financial ability and courage can create miracles in the stock market.
9. “If your IQ is 120 or 130, you can give away the rest. You don’t need to be incredibly intelligent to be successful as an investor.”
Investing in the stock market is not rocket science. This Warren Buffett quote tells us that you don’t have to be incredibly smart to invest in the stock market and make money. Anyone can make good money in the market if they are willing to learn and be disciplined.
10. “If you can’t stand to see your stock holdings drop 50% without panicking, you shouldn’t be investing in the stock market.”
This last quote from Warren Buffett advocates the risk involved in investing in the stock market. There are many factors that govern the movement of stock prices. There may be a situation where one of your holdings can fall by up to 50% due to bad news or unexpected news. When investing in the stock market, you must have enough risk tolerance to move your stocks and not panic.
Quick note: This rule may seem a bit contradictory to the first quote discussed in this post. However, the first quote generally advocates for an investor’s net worth or overall portfolio, not individual stocks. A single stock in your portfolio can go down significantly, and you need to have the risk tolerance to handle that.
Here is everything about Warren Buffett’s 10 best investment quotes. We hope that these quotes from the Oracle of Omaha will inspire you and light the way for you to become a successful stock market investor. We have included most of Warren Buffett’s best quotes in this list of 10 best investment quotes.
Also, if you think I missed a popular Warren Buffett quote, please let me know in the comments below and I’ll add it to the list. Have a great day and happy investing.
Critesi (Tweet here) is the founder and CEO. Trade Brains & FinGrad. He is an NSE certified stock fundamental analyst with over 7 years of experience in stock market investment. Kritesh frequently writes about stock market investment and IPOs and publishes his personal insights on the market.
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