Ignore Political and Economic Forecasts

"We will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and businessmen."

Warren Buffett

One Year Results are Not Relaible

"Do not take yearly results too seriously. Instead, focus on four- or five-year averages."

Warren Buffett

Hope Diamond Versus Rhinestone

"It's far better to own a portion of Hope diamond than 100 percent of a rhinestone."

Warren Buffett

Sometimes Markets Get Divorced from Reality

"Periodically, financial markets will become divorced from reality."

Warren Buffett

Don't Make Simple Things Complex

Do Humans Make Simple Things Complex?

"There seems to be some perverse human characteristic that likes to make easy things difficult."

Warren Buffett

Does Investing Success Require Extraordinary IQ?

Does Investing Success Require Extraordinary IQ?

"Success in investing doesn't correlate with IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people in trouble investing."

Warren Buffett

Cash is a Terrible Investment

"Today people who hold cash equivalents feel comfortable. They shouldn't. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value."

Warren Buffett

Stock Market is a Voting Machine

Stock Market is a Voting Machine in the Short Run

"But I think it is very easy to see what is likely ti happen over the long term. Ben Graham told us why: 'Though the stock market functions like a voting machine in the short run, it acts as a weighing machine in the long run.' Fear and greed play important roles when votes are being cast, but they don't register on the scale."

Warren Buffett

Price is What You Pay and Value Is What You Get

Price is What You Pay and Value Is What You Get

"Long ago, Ben Graham taught me that "price is what you pay; value is what you get." Whether we are talking about socks or stocks, I like buying quality merchandise when it is marked down."

Warren Buffett

Be Greedy when Others are Fearful

"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."

Warren Buffett

Invest in a Fool Manageable Business

Picture shows April Fool and advice to invest in a company that even a fool can run

"You should invest in a business that even a fool can run, because someday a fool will."

Warren Buffett

Fear Is Your Friend

Graphic shows a investor afraid of surrounding gloom and darkness

"It's been an ideal period for investors: A climate of fear is their friend. Those who invest only when commentators are upbeat end up paying a heavy price for meaningless reassurance."

Warren Buffett

Be a Pessimist When Investing

Graphic depicts a euphoric girl and a pessimistic mouse

"When investing, pessimism is your friend, euphoria the enemy."

Warren Buffett

Buy Stocks to Hold for Very Long

Graphic portrays the Stock Exchange Closed for 10 years

"Only buy something you'd be perfectly happy to hold if the market is shut down for 10 years."

Warren Buffett

People Are Happy when Prices of Burgers Down But Not Stocks

Picture shows people celebrating when burger prices are down but sad about stocks

"This is one thing I can never understand. To refer to a personal taste of mine, I'm going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing "Hallelujah Chorus" in the Buffett household. When hamburgers go up, we weep. For most people it's the same way with everything in life they will be buying - except stocks. When stocks go down and you can get more for your money, people don't like them anymore."

Warren Buffett

Wait for Your Pitch

Graphic Depicts Base Ball Player Swinging to Strike at the Pitch

The stock market is a non-called strike game. You don't have to swing at everything - you can wait for your pitch. The problem when you're a money manager is that your fans keep yelling, "Swing you bum!"

Warren Buffett

Related:

Warren Buffet's Wait for the Right Pitch Advice Video

Add to Existing Before Looking at New Investments

Picture Shows Investor Looking at New Investments

"Before looking at new investments, we consider adding to the old ones. If a business is attractive enough to buy once, it may well pay to repeat the process."

Warren Buffett

Portfolio Concentration Could Reduce Risk

Dart hitting bull's eye depicts portfolio concentration

"We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort level he must feel with its economic characteristics before buying into it."

Warren Buffett

Consequences of Buying Unnecessary Things

The man who once splurged on expensive holidays finds that he has runout of money

"If you buy things you do not need, soon you will have to sell things you need."

Warren Buffett

Related article on the above quote:

• If you buy things you do not need, soon you will have to sell things you need

Stocks with Moats Reward Investors

An Investor is feeling happy on identifying a business with an enduring moat

"The products or services that have wide, sustainable moats around them are the ones that deliver rewards to investors."

Warren Buffett