Wise Wealth Advisors

D.Muthukrishnan (Muthu), Certified Financial Planner- Personal Financial Advisor

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Warren Buffett Speaks (Money Mantras….20)

Posted by Muthu on January 1, 2010

Wishing you a very wonderful new year 2010.

I take this opportunity to convey my gratitude for your continued support and trust in us.

As mentioned in my last series of Money Mantras, I’ve been reading the book, Warren Buffett Speaks- Wit and Wisdom from the World’s greatest Investor’ by Janet Lowe.

On this New Year day, I’m delighted to share with you some more interesting and insightful quotes of my beloved master, Warren Buffet.

1) Diversification is a protection against ignorance. It makes little sense for those who know what they are doing.

2) A lot of great fortunes in the world have been made by owning a single wonderful business. If you understand the business, you don’t need to own very many of them.

3) That which is not worth doing is not worth doing well.

4) If at first you do succeed, quit trying.

5) The only way to slow down is to stop.

6) There is nothing like writing to force you to think and to get your thoughts straight.

7) When proper temperament joins with proper intellectual framework, then you get rational behaviour.

8) If principles can become dated, they’re not principles.

9) It is sort of the ultimate act of generosity when you go out and teach someone something that is going to be harmful to your own commercial well being.

10) I would be a bum on the street with a tin cup if the markets were always efficient.

11) Investing in a market where people believe in efficiency is like playing bridge with someone who has been told that it doesn’t do any good to look at the cards.

12) It has been helpful for me to have tens of thousands (of students) turned out of business schools taught that it didn’t do any good to think.

13) John Maynard Keynes essentially said, don’t try and figure out what the market is doing. Figure out a business you understand and concentrate.

14) For some reason, people take their cue from price action rather than from values. What doesn’t work is when you start doing things you don’t understand or because they worked last week for somebody else. The dumbest reason in the world to buy a stock  is because it’s going up.

15) The future is never clear; you pay a very high price in the stock market for a cheery consensus. Uncertainty is actually the friend of the buyer of long term values.

16) Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.

17) You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with a 130 IQ. Rationality is essential.

18) Happily, there’s more than one way to get to financial heaven.

19) Of course, the investor of today does not profit from yesterday’s growth.

20) If the business does well, the stock eventually follows.

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