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Famous Warren Buffett Quotations 1. Rule No.1: Never lose money. Rule No.2: Never forget rule No.1. 2. Chains of habit are too light to be felt until they are too heavy to be broken. 3. Price is what you pay. Value is what you get. 4. The fact that people will be full of greed, fear or folly is predictable. The sequence is not predictable. 5. Success in investing doesn't correlate with I.Q. once you're above the level of 25. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing 6. Of the rich people I've known, money just amplifies their basic traits. If they were jerks before they had money, they simply become jerks with a lot of money. 7. Investors should remember that excitement and expenses are their enemies. 8. At the start of the party the punch is flowing and everything's going well, but you know at midnight it's all going to turn into pumpkins and mice. People think they'll be able to get out just before midnight, but everyone else thinks that too. 9. What the wise man does at the beginning [of a rising market] the fool does at the end. Once a price history [rising market] develops enough for other people to see it and get envious, greed takes over markets. 10. It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. 11. Risk comes from not knowing what you're doing. 12. We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful. 13. If you gave me the choice of being CEO of General Electric or IBM or General Motors, you name it, or delivering papers, I would deliver papers. I would. I enjoyed doing that. I can think about what I want to think. I don't have to do anything I don't want to do. 14. Your premium brand had better be delivering something special or it's not going to get the business makes you right. And if your facts and reasoning are right, you don’t have to worry about anybody else. 15. You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right—and that’s the only thing that makes you right. And if your facts and reasoning are right, you don’t have to worry about anybody else. 16. Forbes: 'How do you feel?' Buffett: 'Like an oversexed guy in a whorehouse. Now is the time to invest and get rich'. - At the bottom of the bear market in October 1974 17. I always knew I was going to be rich. I don't think I ever doubted it for a minute. 18. Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years. 19. It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently. 20. Only when the tide goes out do you discover who's been swimming naked. Honesty is the best policy. |
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    After all is said and done,, the chains of habit no matter what the chain is made of ,, will drag us down,,
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"Buy low, Sell high" sounds very easy, but when you are in it, it is NOT easy any more. You have a stock, or a house, you see the value go down, the feeling of fear, you are panic. What if the plummet continue, should I buy more or just cut loss?? Everyone has this experience. Nobody wants to see the investment gone down. I always buy a little and reserve some money, in case it drop more, I still have money to buy more, if I think it will go up eventually. Lots of investors are arrogant that they think their decisions are right and put all the money at one time. There is no "bell" ringing when the price is right to buy and no bell ringing when the price should be sold. It is all in a split of second. The prices keep jumping up and down. You will never know where is the bottom or top. I usually buy down more. It takes courage to buy more when fearful, but I do that. I am a contrarian, and buy a little each time till it stops dropping (RSI under 30). I held all the shares passed my average prices, I started to sell some shares and then buy back a little. When RSI is over 70, I only sell a little, not buy back any more. I keep sell it until all shares sold. Everyone underestimate how difficult of stock trading is. It is a very treacherous. Only the people who have involved in stock trading knows what I said. People look the chart say "buy here, sell there". The chart only shows the past, the future is still unknown. Honesty is the best policy.
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Rule #12: Sell the stock when everyone is greedy, and buy the stock when everyone is fearful. This rule can be implemented on all investments, i.e. real estate, stock market, commodity, ..... etc. Honesty is the best policy.
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