Investment Wisdom

"Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1."

"In the short run, the market is a voting machine but in the long run, it is a weighing machine."

"The big money is not in the buying and selling, but in the waiting."

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

"Price is what you pay. Value is what you get."

"The four most dangerous words in investing are: 'This time it's different.'"

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

"The stock market is a no-called-strike game. You don't have to swing at everything — you can wait for your pitch."

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

"The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price."

"Time is the friend of the wonderful company, the enemy of the mediocre."

"When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact."

"Buy straw hats in the winter."

"Risk comes from not knowing what you're doing."

"In business, I look for economic castles protected by unbreachable moats."

"The markets are a pendulum that forever swings between unsustainable optimism and unjustified pessimism."

"The investor's chief problem — and even his worst enemy — is likely to be himself."

"Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it."

"The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man."

"Look at stocks as ownership of a business, not as pieces of paper."