Business Wisdom for Everyone
Warren Buffett is one of the greatest investors of our time and the quintessential self-made man, known as much for his philanthropic efforts as for his immense wealth. The Chairman and CEO of Berkshire Hathaway became a billionaire in 1990, and in 2008 he beat out Bill Gates for the title of the wealthiest person in the world.
Despite his incredible business success, Buffett remains remarkably down to earth, and his thoughts on money, business, investing, and life in general offer valuable wisdom for anyone in business, from powerful CEOs to struggling small business owners.
On Business Success
“The great personal fortunes in this country weren’t built on a portfolio of fifty companies. They were built by someone who identified one wonderful business.”
— The Tao of Warren Buffett, Simon &; Schuster, 2006
On the Stock Market
“Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”
— The New York Times, October 2008
On Wealth
“I don’t have a problem with guilt about money. The way I see it is that my money represents an enormous number of claim checks on society. It’s like I have these little pieces of paper that I can turn into consumption. If I wanted to, I could hire 10,000 people to do nothing but paint my picture every day for the rest of my life. And the GDP would go up. But the utility of the product would be zilch, and I would be keeping those 10,000 people from doing AIDS research, or teaching, or nursing.”
On the Impact of the Internet on Business
“The Internet as a phenomenon is just huge. That much I understand. I just don’t know how to make money at it… I don’t try to profit from the Internet. But I do want to understand the damage it can do to an established business. Our approach is very much profiting from lack of change rather than from change. With Wrigley chewing gum, it’s the lack of change that appeals to me. I don’t think it is going to be hurt by the Internet. That’s the kind of business I like.”
— Businessweek, 1999
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On the Difference Between “Price” and “Value”
“Long ago, Ben Graham taught me that ‘Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
— Letter to shareholders, 2008
On Entering into Legal Agreements
“It is impossible to unsign a contract, so do all your thinking before you sign.”
— The Tao of Warren Buffett, Simon & Schuster, 2006
On the Traits Needed to Be a Great Investor
“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 130 IQ.”
— Warren Buffett Speaks: Wit and Wisdom from the World’s Greatest Investor, Wiley Publishers, 2007
On the First Rule of Investing
“Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.”
On Surrounding Yourself with the Right People
“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.”
On Learning How to Invest
“Investing is like baseball. If you want to score runs, don’t study the scoreboard, study the playing field.”
