Legendary Investor Warren Buffet

Posted by u.v.Ramana on 2 March 2010
Last update on 3/5/2010 12:00:00 AM. Total replies 2

Quotes/things to remember

Dear All

I would like to share with you all the Quotes of this great man "Warren Buffet".I shall try and put up some more information and later dates.We are all trying to make money build up some capital and hence sailing in the same boat.Lastly how ironical that some of these have been brought up by MumbaiBulls time and again.Please do read.

You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.

We do not view the company itself as the ultimate owner of our business assets but instead view the company as a conduit through which our shareholders own assets.

Wide diversification is only required when investors do not understand what they are doing.

Never invest in a business you cannot understand.

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

Why not invest your assets in the companies you really like?

The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price.

Risk can be greatly reduced by concentrating on only a few holdings.

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

Buy companies with strong histories of profitability and with a dominant business franchise.

Be fearful when others are greedy and greedy only when others are fearful.

It is optimism that is the enemy of the rational buyer.

As far as you are concerned the stock market does not exist. Ignore it.

The ability to say "no" is a tremendous advantage for an investor.

Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell.

Lethargy bordering on sloth should remain the cornerstone of an investment style.

An investor should act as though he had a lifetime decision card with just twenty punches on it.

Wild swings in share prices have more to do with the "lemming- like" behaviour of institutional investors than with the aggregate returns of the company they own.

As a group lemmings have a rotten image but no individual lemming has ever received bad press.

An investor needs to do very few things right as long as he or she avoids big mistakes.

"Turn-arounds" seldom turn.

Do not take yearly results too seriously. Instead focus on four or five-year averages.

Focus on return on equity not earnings per share.

Calculate "owner earnings" to get a true reflection of value.

Look for companies with high profit margins.

Growth and value investing are joined at the hip.

The advice "you never go broke taking a profit" is foolish.

It is more important to say "no" to an opportunity than to say "yes".

Always invest for the long term.

Does the business have favourable long term prospects?

It is not necessary to do extraordinary things to get extraordinary results.

Remember that the stock market is manic-depressive.

Buy a business don't rent stocks.

Does the business have a consistent operating history?

An investor should ordinarily hold a small piece of an outstanding business with the same tenacity that an owner would exhibit if he owned all of that business

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Posted by Suraj Bekal on 5 March 2010

Really nice artice U.V.Ramana.

It's nice to bring in the minds of these giants, so that we follow their footsteps and become a giant some day too.