Top 10 Warren Buffett Quotes on Investments

The ‘Oracle of Omaha’, as Buffet is often fondly referred to, is a well-known American investor, businessman and philanthropist. He purchased his first stocks at just 11 years old and then went on to use his savings to install pinball machines in shops in his local area, earning himself money for each machine. The rest was history!

The now 91-year-old is currently the CEO of Berkshire Hathaway. Today he’s worth a whopping $100 billion, according to Forbes 2021, and is renowned for his practical advice and strong views around rationality and research when it comes to investment decisions. His nuggets of wisdom are so sought after that ‘Warren Buffet quotes’ is now one of the most Googled phrases in the wealth management industry. 

We’ve rounded up 10 of his best quotes to help you share some of that wealth of knowledge.

10. “Someone’s sitting in the shade today because someone planted a tree a long time ago.”

Let this quote be a reminder that most things are not instant, and it may take years to reap the rewards of your hard work and labour. Plan carefully and think about what will be needed in the years to come. It pays to put something away for a rainy day. Investment ISAS can be a great way to get started, but don’t expect results overnight. 

9. “Risk comes from not knowing what you’re doing.

Investing always carries an element of risk. Before you make any decisions you should make sure you’ve fully done your research and know what you are getting yourself in for. Seek specialist advice to gain a better level of understanding to minimise risk and help ensure your money is in the best place for your needs.

8. “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”

One of the most important things for an investor to remember is that patience is key. To have the most chance of success, you are encouraged to choose wisely and be prepared to stick it out for the long haul. You’ll need to bide your time to reap the rewards rather than hoping to dip in and out of investment for a quick win and pay-out.

7. “Price is what you pay, value is what you get.”

Understanding the difference between price and value is key when it comes to ‘value investing’. A value investment strategy is where an investor buys stocks that appear to be trading for less than their intrinsic value. Potential investors are encouraged to do extensive research in order to find those ‘diamonds in the rough’, that allow them to invest in quality products at a lower price. 

6. “It’s better to hang out with people better than you. Pick out associates whose behaviour is better than yours, and you’ll drift in that direction.”

We’ve all heard the expression – ‘dress for the job you want; not the one you have’ or ‘birds of a feather flock together’. They have the same basic principle – surround yourself with people who are stuck in one place, have become complacent or even lazy, and you’re likely to struggle to feel motivated. But if you surround yourself with successful, honest people who are more educated or more successful than you, you're likely to continue to strive to excel in life. You’ll also have access to sound advice and knowledge, getting you where you want to go.

5. “It’s only when the tide goes out that you discover who’s been swimming naked.”

Seeing is not believing these days. Social media has distorted our view of reality. The grass probably isn’t greener, and those people who appear to have it all together may well be distorting themselves just to portray the image they wish were reality. When everything is going well, many will appear to be winning, but tear the safety blanket of the tide away and this may not always be the case. It’s worth remembering this before jumping into any financial decisions just because others are doing so. 

4. “I made my first investment at age eleven. I was wasting my life until then.”

We aren’t suggesting that you get your children investing by the time they’ve reached secondary school, but this quote certainly stresses the importance of compound interest.The more time your investment When as to grow, the greater power of compounding it will achieve, so the earlier you start investing, the better the chance of achieving higher returns. So if you’re thinking of investing now, it’s time to get started! 

3. “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” 

Don’t follow the herd. The price you pay and the value you invest in are paramount. When people catch on to a ‘good thing’, prices tend to rise and bubble, causing those following the crowd to overpay for a resource that will eventually return next to nothing. Instead, train yourself to seek opportunities when other people only see crises.

2. “The most important investment you can make is in yourself.”

Whatever the industry, you can never underestimate the importance of self-evolution. Learning and becoming better at your trade allows you to command more respect, increases your reputation and, ultimately, your income. Strive to constantly educate yourself, ensure your money continues to work for you, even when you’re long past retirement age. 

• “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1”

This quote, our favourite, isn’t entirely true – Warren Buffett has, of course, made losing investments in his life – however, the ultimate takeaway from this quote is to protect your downside. 

Before taking a leap into the world of investing, it’s crucial that you do your research so you can fully understand the risks before committing any of your own money. Find out more about how to start investing in shares here.