Quotes & Misquotes

Page 5


Price is what you pay. Value is what you get. Warren Buffett


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You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right. Warren Buffett

 

 

We do not view the company itself as the ultimate owner of our business assets but instead view the company as a conduit through which our shareholders own assets. Warren Buffett

 

 

The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price. Warren Buffett

 

 

Never invest in a business you cannot understand.
 
Warren Buffett

 

 

Risk can be greatly reduced by concentrating on only a few holdings.
 
Warren Buffett

 

 

 

The only time to buy these is on a day with no 'y' in it.  Warren Buffett

 

 

Stop trying to predict the direction of the stock market, the economy, interest rates, or elections.
 
Warren Buffett

 

 

Buy companies with strong histories of profitability and with a dominant business franchise.
 
Warren Buffett

 

You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right. Warren Buffett

 

 

 

Be fearful when others are greedy and greedy only when others are fearful. Warren Buffett

 

 

Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market. Warren Buffett

 

 

When [Berkshire] buy common stock... we approach the transaction as if we were buying into a private business. Warren Buffett

 

 

Accounting consequences do not influence our operating or capital-allocation decisions.  When acquisition costs are similar, we much prefer to purchase $2 of earnings that is not reportable by us under standard accounting principles than to purchase $1 of earnings that is reportable. Warren Buffett

 

 

Never invest in a business you cannot understand. Warren Buffett

 

 

Why not invest your assets in the companies you really like?  As May West said, "Too much of a good thing can be wonderful". Warren Buffett

 

 

When speaking of managers and executive compensation]... The .350 hitter expects, and also deserves, a big payoff for his performance - even if he plays for a cellar-dwelling team.  And a .150 hitter should get no reward - even if he plays for a pennant winner. Warren Buffett

 

 

The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price. Warren Buffett

 

It is optimism that is the enemy of the rational buyer.
Warren Buffett

 

 

As far as you are concerned, the stock market does not exist. Ignore it. Warren Buffett

 

 

The ability to say "no" is a tremendous advantage for an investor. Warren Buffett

 

 

Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell. .  Warren Buffett

 

In the business world, the rear view mirror is always clearer than the windshield. Warren Buffett

 

 

Lethargy, bordering on sloth should remain the cornerstone of an investment style. Warren Buffett

 

 

An investor should act as though he had a lifetime decision card with just twenty punches on it. Warren Buffett

 

 

Wild swings in share prices have more to do with the "lemming- like" behaviour of institutional investors than with the aggregate returns of the company they own. Warren Buffett

 

 

As a group, lemmings have a rotten image, but no individual lemming has ever received bad press. Warren Buffett

 

 

An investor needs to do very few things right as long as he or she avoids big mistakes. Warren Buffett

 

 

"Turn-arounds" seldom turn. Warren Buffett

 

 

Is management rational? Warren Buffett

 

 

Is management candid with the shareholders? Warren Buffett

 

 

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

 

 

Focus on return on equity, not earnings per share. Warren Buffett

 

 

Calculate "owner earnings" to get a true reflection of value. Warren Buffett

 

 

Look for companies with high profit margins. Warren Buffett

 

 

Growth and value investing are joined at the hip.  Warren Buffett

 

 

The advice "you never go broke taking a profit" is foolish. Warren Buffett

 

 

It is more important to say "no" to an opportunity, than to say "yes". Warren Buffett 

 

 

Always invest for the long term. Warren Buffett

 

 

Risk can be greatly reduced by concentrating on only a few holdings. Warren Buffett

 

 

Stop trying to predict the direction of the stock market, the economy, interest rates, or elections. Warren Buffett

 

 

Buy companies with strong histories of profitability and with a dominant business franchise. Warren Buffett

 

 

It is optimism that is the enemy of the rational buyer. Warren Buffett

 

 

The ability to say "no" is a tremendous advantage for an investor. Warren Buffett

 

 

Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell. Warren Buffett

 

 

Look for companies with high profit margins. Warren Buffett

 

 

Growth and value investing are joined at the hip. Warren Buffett

 

 

It is not necessary to do extraordinary things to get extraordinary results. Warren Buffett

 

 

An investor should ordinarily hold a small piece of an outstanding business with the same tenacity that an owner would exhibit if he owned all of that business. Warren Buffett

 

 

Price is what you pay. Value is what you get. Warren Buffett

 

 

All boats rise in high tide. Warren Buffett

 

 

Does the business have favourable long-term prospects? Warren Buffett

 

 

It is not necessary to do extraordinary things to get extraordinary results. Warren Buffett

 

 

Remember that the stock market is manic-depressive. Warren Buffett

 

 

Buy a business, don't rent stocks. Warren Buffett

 

 

Does the business have a consistent operating history? Warren Buffett

 

 

Wide diversification is only required when investors do not understand what they are doing. Warren Buffett

 

 

An investor should ordinarily hold a small piece of an outstanding business with the same tenacity that an owner would exhibit if he owned all of that business. Warren Buffett

 

 

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

 


 

"We understand technology products and what they do for people. But we don't understand the economics ten years out -- the predictability of it. Is it comprehensible? We do think about it, but we don't get anyplace. We would be skeptical of anyone who says they can. Even my friend Bill Gates would agree." Warren Buffett

 

 

 

"Think about a company with a market cap of $500 billion. To justify paying this price, you would have to earn $50 billion every year until perpetuity, assuming a 10% discount rate. And if the business doesn't begin this payout for a year, the figure rises to $55 billion annually, and if you wait three years, $66.5 billion. Think about how many businesses today earn $50 billion, or $40 billion, or $30 billion. It would require a rather extraordinary change in profitability to justify that price." Warren Buffett

 

 

 

"We've seen companies with market caps of tens of billions of dollars that are worthless, and seen other companies that trade at 20-25% of their true value. It eventually gets sorted out. But the speculative mania in one area is not creating equivalent discounts elsewhere. We're not finding businesses at half their real value today. Forty-five years ago, I had lots of ideas and no money. Today, I have a lot of money but no ideas." Warren Buffett

 

 

 

"If you buy something because it's undervalued, then you have to think about selling it when it approaches your calculation of its intrinsic value. That's hard. But if you buy a few great companies, then you can sit on your $%@. That's a good thing." Buffett added, "We want to buy stocks to hold forever." Charles Munger:

 


 

"Only two things are infinite, the universe and human stupidity, and I'm not sure about the former." -Albert Einstein

 

 


"Bears don't live on Park Avenue."  ---Bernard Baruch

 

 

"Any man who is a bear on the future of this country will go broke." ---J.P. Morgan
 

 

 

"Value criteria act like a chaperon at a party, making sure you don't fall for some sexy stock with a great story." ---James O'Shaughnessy in What Works on Wall Street

 

 

 

"You don't make money by investing in a good company . . . You make money by investing in a company that is better than the market thinks." ---Robert Vishny, Institutional Investor, January 1997

 

 

 

"Stocks are a safe bet, but only if you stay invested long enough to ride out the corrections."  ---Peter Lynch, Worth December/January 1997


 
 

 

"The only thing we know for certain about technical analysis is that it's possible to make a living publishing a newsletter on the subject." ---Martin S. Fridson, Investment Illusions

 

 

 

"Technical analysts are the witch doctors of our business. By deciphering stock price movement patterns and volume changes, these Merlins believe they can forecast the future."  ---William Gross, Everything You've Heard About Investing is Wrong!

 

 

 

"The one principal that applies to nearly all these so-called "technical approaches" is that one should buy because a stock or the market has gone up and one should sell because it has declined. This is the exact opposite of sound business sense everywhere else, and it is most unlikely that it can lead to lasting success in Wall Street. In our own stock-market experience and observation, extending over 50 years, we have not known a single person who has consistently or lastingly made money by thus "following the market." We do not hesitate to declare that this approach is as fallacious as it is popular."  ---Benjamin Graham, The Intelligent Investor

 

 

 

"Technical analysis is doomed to fail by the statistical fact that stock prices are nearly random; the market's patterns from the past provide no clue about its future. Not surprisingly, studies conducted by academicians at universities like MIT, Chicago, and Stanford dating as far back as the 1960s have found that the technical theories do not beat the market, especially after deducting transaction fees. It is amazing that technical analysis still exists on Wall Street. One cynical view is that technicians generate higher commissions for brokers because they recommend frequent movement in and out of the market."  ---William A.Sherden, The Fortune Sellers: The Big Business of Selling and Buying Predictions

 

 

 

"Security analysts have enormous difficulty in performing their basic function of forecasting earnings prospects for the companies they follow . . .. Bluntly stated, the careful estimates of security analysts (based on industry studies, plant visits, etc.) aren't much better than those that would be obtained by simple extrapolation of past trends . . . " ---Burton Malkiel in "A Random Walk Down Wall Street" (5th edition)

  

 

"When even the analysts are bored, it's time to start buying." ---Peter Lynch (Peter Principle #9) "Beating the Street"

 

 

"We have two classes of forecasters: Those who don't know--and those who don't know they don't know."  ---John KennethGalbraith

 

 

"Remember the First Law of Economics: For every economist, there is an equal and opposite economist--so for every bullish economist, there is a bearish one. The Second Law of Economics: They are both likely to be wrong."  ---William A. Sherden in The Fortune Sellers The Big Business of Selling and Buying Predictions

 

 

"Personally, I think everybody who predicts the future with a straight face should be required (by federal law) to change out of the business suit, wrap him/herself in a gypsy shawl, wear one of those pointed wizard's hats with a picture of a crescent moon on it, and make conjuring sounds over a crystal ball. That way, everybody would know exactly what's going on and how much credibility to give the answer."  ---William A. Sherden in The Fortune Sellers The Big Business of Selling and Buying Predictions

 

 

"My definition of a guru is someone who is lucky enough to be quoted in the right publication at the right time saying the right thing." ---Herb Greenberg (The Street - 3/4/98)

 

 

"In summary, people trade for both cognitive and emotional reasons. They trade because they think they have information when they have nothing but noise, and they trade because trading can bring the joy of pride. Trading brings pride when decisions turn out well, but it brings regret when decisions do not turn out well. Investors try to avoid the pain of regret by avoiding the realization of losses, employing investment advisors as scapegoats, and avoiding stocks of companies with low reputations."  ---Meir Statman "Investor Psychology and Market Inefficiencies," Equity Markets and Valuation Methods, The Institute of Chartered Financial Analysts, 1988

 

 

 

"I do not dismiss the behavioural aspects that Joe [Lakonishok] and others have argued which is to say that there are all kinds of reasons from cognitive psychology that suggest that a real dog is likely to get under priced, and maybe people know it's under priced and they still don't want to hold it." ---William F. Sharpe

 

 

"Markets invariably move to undervalued and overvalued extremes because human nature falls victim to greed and/or fear." ---William Gross, Everything You've Heard About Investing is Wrong!

 

 

"Clearly the price considered most likely by the market is the true current price: if the market judged otherwise, it would quote not this price, but another price higher or lower."  ---Louis Bachelier

 

 

"The human mind craves clairvoyance, but anyone's ability to see the future is extremely limited."  ---Frederick L. Muller, CFA

 

 

"Graham's conviction rested on certain assumptions. First, he believed that the market frequently mispriced stocks. This mispricing was most often caused by human emotions of fear and greed. At the height of optimism, greed moved stocks beyond their intrinsic value, creating an overpriced market. At other times, fear moved prices below intrinsic value, creating an undervalued market."  ---Robert G. Hagstrom, The Warren Buffett Way

 

 

 

"If you adhere to the dogma that stocks must beat bonds in the long-enough run, there is no P/E level that the market averages out to at which you will take in sail. A Ponzi bubble is ever possible, and given past psychologies of boom and bust, ever-higher P/E ratios become a self-fulfilling prophecy." ---Paul A. Samuelson, "The Long-Term Case for Equities," The Journal of Portfolio Management, Fall 1994

 

 

 

"Recently we worked on a project that involved users rating their experience with a computer. When we had the computer the users had worked with ask for an evaluation of its performance, the responses tended to be positive. But when we had a second computer ask the same people to evaluate their encounters with the first machine, the people were significantly more critical. Their reluctance to criticize the first computer 'face to face' suggested they didn't want to hurt its feelings, even though they knew it was only a machine."  ---Bill Gates in The Road Ahead
 
 

 

 

"The greatest advantage from gambling comes from not playing it at all." ---Girolamo Cardano

 

 

 

 

"The mathematical expectation of the speculator is zero."  ---Louis Bachelier in "The Theory of Speculation" (1900)

 

 

"It would seem the difference between investment and speculation is not very clear in the minds of most market participants. At market extremes - after prolonged bullish advances or bearissh retreats - the confusion between investment and speculation appears to be universal . . . We have no idea what will happen to the market . . . What is certain, however, is that market participants need to be reminded of Graham's investment/speculation distinction; confusion over the concepts is as widespread as it has ever been."  ---Dennis Butler (Centre Street Cambridge) in "What Speculation?" from Barron's (9/15/97)

 

 

 

"Speculation is an effort, probably unsuccessful, to turn a little money into a lot. Investment is an effort, which should be successful, to prevent a lot of money from becoming a little."  ---Fred Schwed Jr. in Where Are The Customerís Yachts?

  

 

 

"Games of chance must be distinguished from games in which skill makes a difference. The principles that work in roulette, dice, and slot machines are identical, but they explain only part of what is involved in poker, betting on the horses, and backgammon. With one group of games the outcome is determined by fate; with the other group, choice comes into play. The odds--the probability of winning--are all you need to know for betting in a game of chance, but you need far more information to predict who will win and who will lose when the outcome depends on skill as well as luck. There are cardplayers and racetrack bettors who are genuine professionals, but no one makes a successful profession out of Craps. Many observes consider the stock market itself little more than a gambling casino . . . Cards, coins, dice, and roulette wheels have no memory."  ---Peter Bernstein in Against the Gods

 

 

"Outright speculation is neither illegal, immoral, nor (for most people) fattening to the pocketbook . . .There is intelligent speculation as there is intelligent investing. But there are many ways in which speculation may be unintelligent. Of these the foremost are: (1) speculating when you think you are investing; (2) speculating seriously instead of as a pastime, when you lack proper knowledge and skill for it; and (3) risking more money in speculation than you can afford to lose . . . everyone who buys a so-called "hot" common-stock issue, or makes a purchase in any way similar thereto, is either speculating or gambling. Speculation is always fascinating, and it can be a lot of fun while you are ahead of the game. If you want to try your luck, put aside a portion--the smaller the better--of your capital in a separate fund for this purpose. Never add more money to this account just because the market has gone up and profits are rolling in. (That's the time to think of taking money out of your speculative funds). Never mingle your speculative and investment operations in the same account, nor in any part of your thinking." ---Benjamin Graham in The Intelligent Investor




Never trust the advice of a man in difficulties.
Aesop






It is very difficult to live among people you love and hold back from offering them advice.
Anne Tyler, Celestial Navigation





People who ask our advice almost never take it. Yet we should never refuse to give it, upon request, for it often helps us to see our own way more clearly.
Brendan Francis





Ask advice only of your equals.
Danish Proverb
 



Please give me some good advice in your next letter. I promise not to follow it.
Edna St. Vincent Millay





Write down the advice of him who loves you, though you like it not at present.
English Proverb






Advice is what we ask for when we already know the answer but wish we didn't.
Erica Jong






Good advice is something a man gives when he is too old to set a bad example.
Francois de La Rochefoucauld






I owe my success to having listened respectfully to the very best advice, and then going away and doing the exact opposite.
G. K. Chesterton




Never give advice unless asked.
German Proverb





Some people like my advice so much that they frame it upon the wall instead of using it.
Gordon R. Dickson






There is no human problem which could not be solved if people would simply do as I advise.
Gore Vidal






The true secret of giving advice is, after you have honestly given it, to be perfectly indifferent whether it is taken or not, and never persist in trying to set people right.
Hannah Whitall Smith





I have found the best way to give advice to your children is to find out what they want and then advise them to do it.
Harry S Truman





The only thing to do with good advice is pass it on. It is never any use to oneself.
Oscar Wilde





Don't try to solve serious matters in the middle of the night.
Phillip K. Dick






The advice of friends must be received with a judicious reserve; we must not give ourselves up to it and follow it blindly, whether right or wrong.
Pierre Charron





Many receive advice, few profit by it.
Publilius Syrus






Never take the advice of someone who has not had your kind of trouble.
Sidney J. Harris





In giving advice, seek to help, not please, your friend.
Solon





Never advise anyone to go to war or to marry.
Spanish Proverb




Too many of us look upon Americans as dollar chasers. This is a cruel libel, even if it is reiterated thoughtlessly by the Americans themselves.
Albert Einstein






He that is of the opinion money will do everything may well be suspected of doing everything for money.
Benjamin Franklin





If you would be wealthy, think of saving as well as getting.
Benjamin Franklin





Who is rich? He that is content. Who is that? Nobody.
Benjamin Franklin





Riches may enable us to confer favours, but to confer them with propriety and grace requires a something that riches cannot give.
Charles Caleb Colton, Lacon






Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.
Charles Dickens, David Copperfield,





If all the rich people in the world divided up their money amongst themselves there wouldn't be enough to go around. Christina Stead






Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game. Donald Trump, "Trump: Art of the Deal"






If you want to know what God thinks of money, just look at the people he gave it to.
Dorothy Parker






I'm living so far beyond my income that we may almost be said to be living apart.
E E Cummings



Save a little money each month and at the end of the year you'll be surprised at how little you have.
Ernest Haskins





My problem lies in reconciling my gross habits with my net income.
Errol Flynn





The rich are the scum of the earth in every country.
G. K. Chesterton






Lack of money is the root of all evil.
George Bernard Shaw






One must be poor to know the luxury of giving.
George Eliot





Money frees you from doing things you dislike. Since I dislike doing nearly everything, money is handy.
Groucho Marx






The chief value of money lies in the fact that one lives in a world in which it is overestimated.
H. L. Mencken






Make money your god and it will plague you like the devil.
Henry Fielding






Make money, money by fair means if you can, if not, but any means money.
Horace






If you can count your money, you don't have a billion dollars.
J. Paul Getty



I have enough money to last me the rest of my life, unless I buy something.
Jackie Mason






A wise man should have money in his head, but not in his heart.
Jonathan Swift






Do not be fooled into believing that because a man is rich he is necessarily smart. There is ample proof to the contrary.
Julius Rosenwald






Be rich to yourself and poor to your friends.
Juvenal






It is not easy for men to rise whose qualities are thwarted by poverty.
Juvenal






The easiest way for your children to learn about money is for you not to have any.
Katharine Whitehorn






Lack of money is no obstacle. Lack of an idea is an obstacle.
Ken Hakuta






It is pretty hard to tell what does bring happiness; poverty and wealth have both failed.
Kin Hubbard






The safest way to double your money is to fold it over and put it in your pocket.
Kin Hubbard






He had learned over the years that poor people did not feel so poor when allowed to give occasionally.
Lawana Blackwell





It is the wretchedness of being rich that you have to live with rich people.
Logan Pearsall Smith






Endless money forms the sinews of war.
Marcus Tullius Cicero






Riches cover a multitude of woes.
Menander






No matter how rich you become, how famous or powerful, when you die the size of your funeral will still pretty much depend on the weather.
Michael Pritchard






It is better to have a permanent income than to be fascinating.
Oscar Wilde






Wealth is the parent of luxury and indolence, and poverty of meanness and viciousness, and both of discontent.
Plato






Money alone sets all the world in motion.
Publilius Syrus






Money is the opposite of the weather. Nobody talks about it, but everybody does something about it.
Rebecca Johnson, in 'Vogue'






Someday I want to be rich. Some people get so rich they lose all respect for humanity. That's how rich I want to be.
Rita Rudner








Finance is the art of passing money from hand to hand until it finally disappears.
Robert W. Sarnoff




It has been said that the love of money is the root of all evil. The want of money is so quite as truly.
Samuel Butler







A billion here, a billion there, pretty soon it adds up to real money.
Senator Everett Dirksen







The art of living easily as to money is to pitch your scale of living one degree below your means.
Sir Henry Taylor







A little wonton money, which burned out the bottom of his purse.
Sir Thomas Moore






Money: There's nothing in the world so demoralizing as money.
Sophocles







Money can't buy friends, but it can get you a better class of enemy.
Spike Milligan






I choose the likely man in preference to the rich man; I want a man without money rather than money without a man.
Themistocles from Plutarch, Lives






Never spend your money before you have it.
Thomas Jefferson






He had heard people speak contemptuously of money: he wondered if they had ever tried to do without it.
W. Somerset Maugham Of Human Bondage






Money is like a sixth sense without which you cannot make a complete use of the other five.
W. Somerset Maugham






Money is like a sixth sense without which you cannot make a complete use of the other five.
W. Somerset Maugham





Be you in what line of life you may, it will be amongst your misfortunes if you have not time properly to attend to pecuniary [monetary] matters. Want of attention to these matters has impeded the progress of science and of genius itself.
William Cobbett






No one can earn a million dollars honestly.
William Jennings Bryan







Common sense is the collection of prejudices acquired by age eighteen.
Albert Einstein (attributed)






The last time anybody made a list of the top hundred character attributes of New Yorkers, common sense snuck in at number 79.
Douglas Adams, "Mostly Harmless"






[Common sense] is the best sense I know of.
Lord Chesterfield





The freethinking of one age is the common sense of the next.
Matthew Arnold, 'God and the Bible,





Nothing astonishes men so much as common sense and plain dealing.
Ralph Waldo Emerson







If an idea's worth having once, it's worth having twice.
Tom Stoppard







Incompetents invariably make trouble for people other than themselves.
Larry McMurtry, 'Lonesome Dove'






Competence, like truth, beauty and contact lenses, is in the eye of the beholder.
Laurence J. Peter (and Raymond Hull)






Equal opportunity means everyone will have a fair chance at being incompetent.
Laurence J. Peter






Everyone rises to their level of incompetence.
Laurence J. Peter, "The Peter Principle




 

The incompetent with nothing to do can still make a mess of it. Laurence J. Peter
 

 

 


*  Please note - to the best of my knowledge all of these entries are in the public realm and are accurately reproduced and attributed. If you notice an error please let me know how to correct it . If you have something  that should be included please send an e-mail with that material.  Please do not send copy-written material .Thanks - Gordon -      use this link >    E-Mail
               

 

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