Buy Stocks When Others are Fleeing

"Berkshire buys when the lemmings are heading the other way."

Warren Buffett

Valuation Is and Art and Science

"Valuing a business is part art and part science."

Warren Buffett

Can we Buy a Stock Because it is Going Up?

"For some reason, people take their cues from price action rather than from values. What doesn't work is when you start doing things that you don't understand or because they worked last week for somebody else. The dumbest reason in the world to buy a stock is because it's going up."

Warren Buffett

Forecasts Fill Ears but Not Wallets

"Market forecasters will fill your ear but never fill your wallet."

Warren Buffett

Stock Market is Only to See If Anybody is Acting Foolish

"The market is there only as a reference point to see if anybody is offering to do anything foolish. When we invest in stocks, we invest in businesses."

Warren Buffett

Greed Fear and Folly in Sock Market

"The fact that people will be full of greed, fear, or folly is predictable. The sequence is not predictable."

Warren Buffett

Avoid Dancing In and Out of Securities

"If you feel that you can dance in and out of securities in a way that defeats the inflation tax, I would like to be your broker - but not your partner."

Warren Buffett

Invest in Business Not Gold or Farmlands

"Owning businesses is much more interesting than owning gold or farmland. Besides, stocks are probably still the best of all the poor alternatives in an era of inflation - at least they are if you buy in at appropriate prices."

Warren Buffett

Principles are Eternal

"If principles can become dated, they're not principles."

Warren Buffett

Equities are Best for People who Can Invest Over Time

"Overwhelmingly, for people that can invest over time, equities are the best place to put their money. Bonds might be the worst place to put their money. They are paying very, very little, and they are denominated in a currency that will decline in value."

Warren Buffett

To Invest Do I need to Know Beta and Option Pricing?

Investors Happy that they Don't Know Beta and Option Pricing

"To invest successfully, you need not know understand beta, efficient markets, modern portfolio theory, option pricing, or emerging markets. You may, in fact be, better off knowing nothing of these. That of course, is not prevailing view at most business schools, whose finance curriculum tends to be dominated by such subjects. In our view, though, investment students need only two well-taught courses - How to Value a Business, and How to Think About Market Prices."

Warren Buffett

How Good are Investment Advisors?

"Most advisors are far better at generating high fees than they are at generating high returns."

Warren Buffett

What are the Essential Requirements of an Investment?

"My own preference is an investment in productive assets, whether businesses, farms, or real estate. Ideally, these assts should have the ability in inflationary times to deliver output that will retain its purchasing power value while requiring a minimum of new capital investments. Farms, real estate, and many businesses such as Coca-Cola, IBM, and our own See's Candy meet that double-barrelled test."

Warren Buffett

When is the Right Time to Buy the Stock of a Great Company?

"The best thing that happens to us is when a great company gets into temporary trouble... We want to buy them when they're on the operating table."

Warren Buffett

Don't Play a Game That You Don't Understand

"There are some parts of the game that we don't understand, so we don't play with them."
Warren Buffett

Stock Market Bubbles Repeat

"We will have another bubble, but usually you don't get it the same way you got it before."

Warren Buffett

How People Behave on the Stock Market?

Large Crowd of Investors on the Wall Street

"When people get fearful, they get fearful en masse. Confidence comes back one at a time. When they get greedy, they get greedy en masse."

Warren Buffett

Stock Market is an Auction Market

"In stock markets it's an auction market, and crazy things can happen."

Warren Buffett

Stock Forecaster Glorifies Fortuneteller

"We have long felt that the only value of stock forecasters is to make fortune-tellers look good. Even now, Charlie [Munger] and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children."

Warren Buffett

Money Moves from Active to Patient in the Stockmarket

"Our stay-put behaviour reflects our view that stock market serves as a relocation center at which money is moved from the active to the patient."

Warren Buffett