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Never invest in a business you can't understand

Warren Buffett

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Warren Buffett
Age: 94
Born: 1930
Born: August 30
Entrepreneur
Financier
Investor
Shareholder
Omaha
Nebraska
Warren Edward Buffett
Investment
Management
Understand
Business
Buffets
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Investing
Economics

More quotes by Warren Buffett

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You should be unconcerned about short-term price action when you own the securities directly, just as you were unconcerned when you owned them indirectly through BPL. I think about them as businesses, not stocks, and if the business does all right over the long term, so will the stock.
Warren Buffett
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The American economy is going to do fine. But it won't do fine every year and every week and every month. I mean, if you don't believe that, forget about buying stocks anyway... It's a positive-sum game, long term. And the only way an investor can get killed is by high fees or by trying to outsmart the market.
Warren Buffett
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Investors... can't pick stocks that are better than average. Stocks are a good thing to own over time. There's only two things you can do wrong: You can buy the wrong ones, and you can buy or sell them at the wrong time. And the truth is you never need to sell them.
Warren Buffett
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Investment students need only two well-taught courses - How to Value a Business and How to Think About Market Prices
Warren Buffett
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Investing is simple, but not easy.
Warren Buffett
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Managers thinking about accounting issues should never forget one of Abraham Lincoln's favorite riddles: How many legs does a dog have, if you call a tail a leg? The answer: Four, because calling a tail a leg doesn't make it a leg.
Warren Buffett
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SUPPOSE that an investor you admire and trust comes to you with an investment idea. This is a good one, he says enthusiastically. I'm in it, and I think you should be, too.
Warren Buffett
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If you understood a business perfectly and the future of the business, you need very little in the way of a margin of safety.
Warren Buffett
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We will only do with your money what we would do with our own.
Warren Buffett
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I'm not worried they're all about the investments we make. I mean, listen, this country - we've got $46,000 or $47,000 of GDP per capita. Now, we've done pretty darn well. We'll do better in the future.
Warren Buffett
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Bad terminology is the enemy of good thinking.
Warren Buffett
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In earlier years, a lesser effort produced literally dozens of comparable opportunities. It is difficult to be objective about the causes for such diminution of one's own productivity. Three factors that seem apparent are: (1) a somewhat changed market environment (2) our increased size and (3) substantially more competition.
Warren Buffett
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We don't get paid for being busy, we get paid for being right.
Warren Buffett
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I've never been very fully employed either but just think of what it's like, you know, to go home with a mortgage payment you know and kids and everything else. My dad had that happen to him in the early '30s.
Warren Buffett
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Stocks are the only thing that people are happy to buy when the price goes up.
Warren Buffett
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As an investor with small capital, one should prefer businesses that have high returns on capital and that require little incremental investment to grow.
Warren Buffett
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Always associate yourself with people who are better than you.
Warren Buffett
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We're perfectly willing to trade away a big payoff for a certain payoff.
Warren Buffett
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Buy a cross section of American industry, and if a cross section of American industry doesn't work, certainly trying to pick the little beauties here and there isn't going to work either.
Warren Buffett
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It's never paid to bet against America.
Warren Buffett