Warren Buffet

Warren Buffet is one of the most genuine and informative investors in the world of picking businesses and capital management. One of the biggest stocks in the SP-500 is Berkshire Hathaway which are trading under BRK.A, BRK.B. Both gives you ownership of the company as a shareholder, but at different price points suited for different investors. Warren Buffet and Charlie Mungers(Vice Chairman of Berkshire) knowledge, capital management ability, along with long-term oriented mindset, allows investors to have a trustworthy management backed by much cash on the balance sheet.

Did you know Berkshire Hathaway is the 7th largest company in the SP-500 ranked by market cap, at about 550B. Buffet is a statistic outlier, when looking at performance. Buffet is one of the most famous investors known for his ability to manage, monitor, and stay true to Berkshire Hathaway in a long-term mindset. If you go back to 1965, a long time ago, in a business far away, Berkshire was about to be driven to success through the help of Buffet. To see what Warren Buffet is currently invested in, a list of his holdings are here

If your anything like me: a student that likes to learn, someone who can afford to take risk, or if your just looking for opportunities through research to obtain an informational edge your strategy may differ then Warrens/Berkshire Hathaway. Another strategy in the investing world is through businesses which are small-caps(300M-2B)/micro-caps(50M-300M). These smaller businesses usually have lower institutional ownership, that may be undervalued or offer a mispriced bet. You may have a style/preference on sectors or sizes of businesses, there are many ways to position yourself in the market in order to minimize downside and preserve capital. The fundamentals to picking good businesses are fixed no matter what kind of strategy, there is a common case of metrics to find good businesses. If you have been looking to obtain FIRE(Financial Freedom, Retire, Early) this website is designed to teach and inform in a simple, real world way. I will continue on to a series I like to call Zero to Hero, through this site you can learn how to make your money grow for you, and understand how others are able to buy back their time(such as Warren Buffet). A old Berkshire Hathaway meeting can be found here which explains Buffet’s take on the above.

Here are 25 famous quotes from Buffet that can apply to life/markets:

  • We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
  • Price is what you pay. Value is what you get.
  • Someone’s sitting in the shade today because someone planted a tree a long time ago.
  • Risk comes from not knowing what you’re doing.
  • Never invest in a business you cannot understand.
  • It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.
  • Time is the friend of the wonderful company, the enemy of the mediocre.
  • Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.
  • It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.
  • You only have to do a very few things right in your life so long as you don’t do too many things wrong.
  • Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant.
  • Rule No. 1: never lose money; rule No. 2: don’t forget rule No. 1
  • 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.
  • You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.
  • 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.
  • The most important thing to do if you find yourself in a hole is to stop digging.
  • The stock market is a no-called-strike game. You don’t have to swing at everything, you can wait for your pitch.
  • Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.
  • The best chance to deploy capital is when things are going down
  • If you like spending six to eight hours per week working on investments, do it. If you don’t, then dollar-cost average into index funds
  • Charlie and I view the marketable common stocks that Berkshire owns as interests in businesses, not as ticker symbols to be bought or sold based on their “chart” patterns, the “target” prices of analysts, or the opinions of media pundits.
  • Buy companies with strong histories of profitability and with a dominant business franchise.
  • For 240 years it’s been a terrible mistake to bet against America, and now is no time to start.
  • Speculation is most dangerous when it looks easiest.

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