The investment philosophy of Warren Buffett - In 23 Quotes

Warren Buffett is the most successful investor of our time, perhaps of all time. He is famous for his quotes and meaningful, which often appear in his annual letter to shareholders.

Taken together, his quotes pretty well sum up his investment philosophy and approach. Here are his best sound bites of all time to be a reasonable investor.

1. Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.

2. Investing is laying out money now to get more money in the future.

3. Never invest in a business that can not understand.

4. Do not look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.

5. I put heavier on certainty. It is risky to buy securities at a fraction of what they are worth.

6. If a company goes well, the title follows the end.

7. It 's much better to buy a wonderful company at a fair price for a fair company at a wonderful price.

8. Time is the friend of the wonderful company, the enemy of the mediocre.

9. For some reason people take their cue from the movement of prices, rather than from values. The price is what you pay for. The value is what you get.

10. In the short term, the market is a voting machine. In the long run, is a weighing machine.

11. The most common cause of low prices is pessimism. We want to do business in an environment, not because we like pessimism but because we like the prices it produces. And 'the optimism that is the enemy of the rational buyer. This does not mean, however, that a business or title is a smart purchase, simply because it is unpopular, contrarian approach is just as stupid as a follow-the-crowd strategy. What is required is thinking rather than polling.

12. Risk comes from not knowing what you are doing.

13. It 'better to be roughly right if not wrong.

14. Everything there is to investing is picking good stocks, sometimes good and stay with them until they remain good companies.

15. Wide diversification is only required when investors do not understand what they're doing.

16. You do things when the opportunities come along. I've had periods in my life when I had a lot of ideas come along, and I had long periods of drought. If I have an idea next week, I'll do something. If not, I will not do anything.

17. [On the dot-com bubble:] What do we learn from history is that people do not learn from history.

18. You are neither right nor wrong because the crowd disagrees with you. You're right because your data and reasoning are right.

19. You need not be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.

20. You should invest in a business that even a fool can run, because someday a fool will.

21. When a management with a reputation for brilliant tackles a business with a reputation for bad economics, is the company's reputation remains intact.

22. The best business returns are usually achieved by companies that are doing something very similar today to what they were doing five or ten years ago.

23. Diversification may preserve wealth, but concentration builds wealth .......