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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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Warren Buffett
Age: 94
Born: 1930
Born: August 30
Entrepreneur
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Investor
Shareholder
Omaha
Nebraska
Warren Edward Buffett
Never
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Four
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Call
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Tails
More quotes by Warren Buffett
I do not like debt and do not like to invest in companies that have too much debt, particularly long-term debt. With long-term debt, increases in interest rates can drastically affect company profits and make future cash flows less predictable.
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The best investment you can make, is an investment in yourself... The more you learn, the more you'll earn.
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Would you rather be the world's greatest lover, but have everyone think you're the world's worst lover? Or would you rather be the world's worst lover but have everyone think you're the world's greatest lover? Now, that's an interesting question.
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I like to buy things I can understand. I do a lot of research on things.
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Investing is the greatest business in the world because you never have to swing. You stand at the plate the pitcher throws you General Motors at 47! U.S. Steel at 39! And nobody calls a strike on you. There's no penalty except opportunity. All day you wait for the pitch you like then, when the fielders are asleep, you step up and hit it.
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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.
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People who watch their weight, golf scores, and fuel bills seem to shun quantitative evaluation of their investment management skills although it involves the most important client in the world-themselves.
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The active investors will have their returns diminished by a far greater percentage than will their inactive brethren. That means that the passive group - the know-nothings - must win.
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The power of unconditional love. I mean, there is no power on earth like unconditional love.
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Be brave when others are afraid, and afraid when others are brave.
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Valuing a business is part art and part science.
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If I got any good ideas out of that or I think they're good ideas, I'll be glad to contribute them but the system will probably overdo some other things.
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Emotional makeup is more important than technical skill
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If you cannot control your emotions, you cannot control your money.
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If you don't feel comfortable owning something for 10 years, then don't own it for 10 minutes.
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You have to understand accounting and you have to understand the nuances of accounting. It's the language of business and it's an imperfect language, but unless you are willing to put in the effort to learn accounting - how to read and interpret financial statements - you really shouldn't select stocks yourself
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It's never paid to bet against America.
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I insist on a lot of time being spent, almost every day, to just sit and think. That is very uncommon in American business.
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Problems in a company are like cockroaches in the kitchen. You will never find just one
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By periodically investing in an index fund, the know-nothing investors can actually outperform most investment professionals.
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