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.
Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.
Loss of focus is what most worries Charlie and me when we contemplate investing in businesses that in general look outstanding. All too often, we’ve seen value stagnate in the presence of hubris or of boredom that caused the attention of managers to wander.
Money is not everything. Make sure you earn a lot before speaking such nonsense.
Money to some extent sometimes let you be in more interesting environments. But it can’t change how many people love you or how healthy you are.
Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.
Never give up searching for the job that you’re passionate about. Try to find the job you’d have if you were independently rich. Forget about the pay. When you’re associating with the people that you love, doing what you love, it doesn’t get any better than that.
Never invest in a business you can’t understand.
Nobody buys a farm based on whether they think it’s going to rain next year. They buy it because they think it’s a good investment over 10 or 20 years.