Warren Buffett is no stranger to sharing his views, insights and thoughts with the world.
In fact, he’s been writing investor letters for 50 years!
They don’t call him the “Oracle of Omaha” for nothing – Buffett continues to be involved in some of the biggest investment plays in the world, and investors wait in anticipation for the pearls of investment wisdom he shares every year off the back of these investments.
And for good reason too.
He’s used them to grow his business by 1,826,163% in just 5 decades!
That kind of growth is staggering…
That’s why I’ve decided to pull together 10 of the greatest things Warren Buffett has ever said & shared with the world about how he’s achieved this kind of growth…
The simple rules Warren Buffett’s used to grow his company by 1,826,163%
#1. Buy businesses that can be run by idiots
“I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.”
Source: Business Insider
#2. Ignore politics and macroeconomics when picking stocks
“We will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and businessmen. Thirty years ago, no one could have foreseen the huge expansion of the Vietnam War, wage and price controls, two oil shocks, the resignation of a president, the dissolution of the Soviet Union, a one-day drop in the Dow of 508 points, or treasury bill yields fluctuating between 2.8% and 17.4%.
But, surprise – none of these blockbuster events made the slightest dent in Ben Graham’s investment principles. Nor did they render unsound the negotiated purchases of fine businesses at sensible prices. Imagine the cost to us, then, if we had let a fear of unknowns cause us to defer or alter the deployment of capital. Indeed, we have usually made our best purchases when apprehensions about some macro event were at a peak. Fear is the foe of the faddist, but the friend of the fundamentalist.”
Source: Chairman’s Letter, 1994
#3. Forever is a good holding period
“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
Source: Letter to shareholders, 1988
#4. The best time to buy a company is when it’s in trouble
“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.”
Source: Businessweek, 1999
#5. Companies that don’t change can be great investments
“Our approach is very much profiting from lack of change rather than from change. With Wrigley chewing gum, it’s the lack of change that appeals to me. I don’t think it is going to be hurt by the Internet. That’s the kind of business I like.”
Source: Businessweek, 1999
#6. The more you trade, the more you underperform
“Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, “I can calculate the movement of the stars, but not the madness of men.” If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases.”
Source: Letters to shareholders, 2005
#7. Think Long Term
“Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher five, ten and twenty years from now. Over time, you will find only a few companies that meet these standards – so when you see one that qualifies, you should buy a meaningful amount of stock. You must also resist the temptation to stray from your guidelines: If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.”
Source: Chairman’s Letter, 1996
#8. Be greedy when others are fearful
“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful.”
Source: Letter to shareholders, 2004
#9. Price and value are not the same
“Long ago, Ben Graham taught me that ‘Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
Source: Letter to shareholders, 2008
#10. This is the most important thing
“Rule No. 1: never lose money; rule No. 2: don’t forget rule No. 1”
Source: The Tao of Warren Buffett
How to kick-start your first investment portfolio today
Everyone has to start somewhere…
Even Warren Buffett had to get going at one stage 50 years ago, long before he uncovered these pearls of investment wisdom.
So if you’re looking to get started and put yourself on the road to Buffett’dom I want to introduce you to the investment tool you cannot afford to be without.
It’s something we like to call a Personal Share Portfolio (PSP), and it gives you the opportunity to grow your money alongside investment specialists in a flexible fashion most investments can’t give you.
With a PSP you’ll be able to build a diversified, market-beating portfolio and even get the opportunity to set it up as a Retirement Annuity (RA). You’ll be able to participate, understand and tailor-make your unique portfolio with the help of a dedicated wealth specialist, and unlike many other investments, you can even cut your risks via hedging facilities.
To find out how you can open your own Personal Share Portfolio today simply call me on +2711 263 9500 or e-mail me at firstname.lastname@example.org and I’ll help you get started!
Here’s to long term investment wealth.
Wealth Manager | Vunani Private Clients
011 263 9500