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Asset-heavy businesses generally earn low rates of return - rates that often barely provide enough capital to fund the inflationary needs of the existing business, with nothing left over for real growth, for distribution to owners, or for acquisition of new businesses

Warren Buffett

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Warren Buffett
Age: 94
Born: 1930
Born: August 30
Entrepreneur
Financier
Investor
Shareholder
Omaha
Nebraska
Warren Edward Buffett
Real
Rate
Earn
Asset
Needs
Return
Owners
Acquisition
Growth
Fund
Rates
Often
Capital
Barely
Business
Provide
Distribution
Left
Generally
Existing
Nothing
Lows
Assets
Enough
Heavy
Businesses
Inflationary

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It is to our advantage to have securities do nothing price-wise for months, or perhaps years, while we are buying them.
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The first rule is not to lose. The second rule is not to forget the first rule.
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As of 1992, in fact-though the picture would have improved since then-the money that had been made since the dawn of aviation by all of this country's airline companies was zero. Absolutely zero.
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In other words, the percentage change in book value in any given year is likely to be reasonably close to that year's change in intrinsic value.
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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.
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Be brave when others are afraid, and afraid when others are brave.
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A public-opinion poll is no substitute for thought.
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When they get their ego involved, people do things they shouldn't do.
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I think once you start putting phony figures into financial statements, you get in a lot of trouble. And we've seen so much of that in the last 20 years.
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Working with people who cause your stomach to churn seems much like marrying for money - probably a bad idea under any circumstances, but absolute madness if you are already rich.
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In the long run managements stressing accounting appearance over economic substance usually achieve little of either.
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He must never forget Charlie's plea: Tell me where I'm going to die, so I'll never go there.
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I don't want to hold out false hopes that the - by some magic moment, that things will turn around in a couple months because they wouldn't, Charlie. I mean, and it's a big mistake to try and mislead people.
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If AIG had tried to unwind their derivatives books. I don't know. It would have hit every institution in the world.
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I think you'll have plenty of scrutiny as how the money's invested. I mean, just like the RFC. When the RFC operated, people knew which institutions they were buying preferred stock in. And it worked very well.
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It's a lot easier to buy things than it is to sell them.
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Stocks are the only thing that people are happy to buy when the price goes up.
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I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
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John Maynard Keynes essentially said, don't try and figure out what the market is doing. Figure out a business you understand, and concentrate.
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A fool and his money are soon invited everywhere.
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