What an investor needs is the ability to correctly evaluate selected businesses. Note that word ‘selected’: You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.
What counts for most people in investing is not how much they know, but rather how realistically they define what they don’t know.
What the wise men do in the beginning, fools do in the end.
What we learn from history is that people don’t learn from history.
When forced to choose, I will not trade even a night’s sleep for the chance of extra profits.
When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.
When you combine ignorance and leverage, you get some pretty interesting results.
Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.
Why not invest your assets in the companies you really like? As Mae West said, ‘Too much of a good thing can be wonderful.
With enough insider information and a million dollars, you can go broke in a year.