Over 90% of the investors and traders all around the world are inspired by Warren Buffett and his sayings. Warren Buffett is one of the greatest (if not the greatest) stock market investors of all time. In this article, we will be looking into some of the greatest Warren Buffett investment quotes.
How old were you when you bought your first stock? Please don’t say you haven’t till now! Anyways, Warren bought his first stock at the age of 11. He’s been investing consistently since then. Who knew that a boy rejected from Harvard could go on and become one of the most famous and wealthy people?
Today, Buffett is the CEO of Berkshire Hathaway. This company is the most highly valued stock in the world, standing at $423,000 in October 2021. I could go on and on about Buffett and his achievements. I can write 2000 words article about him. But this article is about Warren Buffett Investment Quotes, especially for beginners. Let’s dive right into it –
Table of Contents :-
Warren Buffett Investment Quotes –
“If you’re not willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”
As a beginner, it is very hard to pick good stocks. Either you don’t know anything, or you’re highly confused. This is where this quote helps you. The best way to pick a stock is by pondering whether you want it. Will you use that company’s products or services in the future? Do you think this company will still be there after 20 years? Will you keep using its products/services? If yes, pick that stock and hold it as long as you can.
“Our favorite holding period is Forever.”
The compounding effect is termed the 8th wonder of the world. The person who showed its power by leading at the front was Warren Buffet. Standing at a net worth of more than $85 billion, Buffett achieved 90% of his wealth during the last 10 years.
Compounding never gives you a linear graph. The growth is exponential. The longer you hold, the greater you’ll earn in interest. That is why Buffett quotes that the holding period must be thought of as Forever!
“Someone is sitting in the shade of a tree today because someone planted a tree a long time ago.”
There is a high chance that you belong to a middle-class family. You know the importance of money, and you’ve seen people who are born with money. Those are lucky, we all know, and we all agree. Now the question is, do you want to earn just for yourself, or do you wish to generate generational wealth?
Latter? Great. It would help if you planted it today, meaning, start investing today asap. And remain invested for the rest of your life. You can reap and enjoy from the interests, and upon your demise, your future generations can reap the fortune you created. They can sit under the tree you planted years ago. Long-term investing has the power to change your as well as your family’s future.
“It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”
Read it again. Did you get the gist?
Warren Buffett has always believed in value investing. He never falls for less price high returns. Instead, he always looks at the value of the company. The foundation of a company and the value it provides to the customers are the main factors to look for. Buffett strongly believes that a wonderful company pays off in the long term. There is a sense of surety and security that can’t be found in other companies.
If you believe in a company, invest in it no matter the price. If you don’t believe in a company, don’t buy it no matter the price.
“Wall street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.”
You will find hundreds of people who have multiple pieces of advice on the stock market and which stocks to pick. You can never judge whether a person is knowledgeable or not. You can’t define someone’s potential or knowledge based on his cars and income. Maybe they got lucky.
The first rule of investing in the stock market is never to seek advice in the first place. Even if you do, don’t follow blindly. Do your own research and then take action. Nobody has the power to predict the market. Neither you nor Warren Buffett and definitely not the so-called advisors you seek in every corner.
“The best chance to deploy capital is when things are going down.”
People generally dump their money when the market already hits high. They hope it’ll go higher, and it doesn’t happen. When the market goes down, people get scared and take out all of their money. They take losses because they don’t want to lose more. Human sentiment is natural!
But the approach should be somewhat opposite. According to Buffett, the best time to invest is when everybody is scared, and the market is suffering losses. Because this is the time when you get great stocks at a much lower price. And eventually, the market is going to go up again. History says it, economy says it.
The market stands back up every time. Think and reflect.
“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.”
Patience, many times, proves to be the greatest asset you will ever own. Doesn’t matter if you have loads of talent and you put in huge efforts, if you aren’t consistent and patient, you won’t achieve what you desire. In investing terms, you won’t witness the power of compounding in a few years. No matter how big amount you invest. Compounding takes time, period.
So Keep Calm and Invest. Have Patience. If it takes time, let it be.
Meanwhile, you can talk more to me about finance and investments, hit me up on Twitter – @sushrutkm