... the best way to own common stocks is through an index fund. Warren Buffett More Quotes by Warren Buffett More Quotes From Warren Buffett Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's. Warren Buffett burning investing pockets We try to exert a Ted Williams kind of discipline. In his book The Science of Hitting, Ted explains that he carved the strike zone into 77 cells, each the size of a baseball. Swinging only at balls in his "best" cell, he knew, would allow him to bat .400; reaching for balls in his "worst" spot, the low outside corner of the strike zone, would reduce him to .230. In other words, waiting for the fat pitch would mean a trip to the Hall of Fame; swinging indiscriminately would mean a ticket to the minors. Warren Buffett baseball mean book Investing is simple, but not easy. Warren Buffett investing money simple Only when you combine sound intellect with emotional discipline do you get rational behavior. Warren Buffett discipline emotional sound You have to turn over a lot of rocks to find those little anomalies. You have to find the companies that are off the map - way off the map. You may find local companies that have nothing wrong with them at all. A company that I found, Western Insurance Securities, was trading for $3/share when it was earning $20/share!! I tried to buy up as much of it as possible. No one will tell you about these businesses. You have to find them. Warren Buffett maps rocks anomalies You should invest like a Catholic marries: for life. Warren Buffett catholic should Taking jobs to build up your resume is the same as saving up sex for old age. Warren Buffett saving-up jobs sex A home is one of the most important assets that most people will ever buy. Homes are also where memories are made and you want to work with someone you can trust. Warren Buffett home memories people The value of a business is the cash it's going to produce in the future. Warren Buffett values cash produce [Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head. Warren Buffett gold would-be people Charlie [Munger] and I are not big fans of resumes. Instead, we focus on brains, passion and integrity. Warren Buffett passion focus integrity I've seen more people fail because of liquor and leverage -- leverage being borrowed money. You really don't need leverage in this world much. If you're smart, you're going to make a lot of money without borrowing. Warren Buffett investing-money smart people Sound investing can make you very wealthy if you're not in too big a hurry Warren Buffett investing bigs sound Anything can happen anytime in markets. And no advisor, economist, or TV commentator-and definitely not Charlie nor I-can tell you when chaos will occur. Market forecasters will fill your ear but will never fill your wallet. Warren Buffett investing tvs ears Mr. Market is kind of a drunken psycho. Some days he gets very enthused, some days he gets very depressed. And when he get really enthused you sell to him, and if he gets depressed, you buy from him. There's no moral taint attached to that. Warren Buffett psycho moral kind A lot of great fortunes in the world have been made by owning a single wonderful business. If you understand the business, you don't need to own very many of them. Warren Buffett wonderful world needs You don't have to be a genius to invest well Warren Buffett wells genius If a business does well, the stock eventually follows. Warren Buffett business doe war The most common cause of low prices is pessimism - sometimes pervasive, sometimes specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. Warren Buffett insightful causes business ...I will give you two pieces of advice. Invest as much in yourself as you can; you are your own best asset by far. Then follow your passion; you want to be really excited to get out of bed every morning. Warren Buffett passion morning two
