Warren Buffett Quotes – Part 4

Derivatives are financial weapons of mass destruction.

Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing.

Diversification may preserve wealth, but concentration builds wealth.

Do not save what is left after spending; instead spend what is left after saving.

Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel. These once unthinkable dosages will almost certainly bring on unwelcome after-effects. Their precise nature is anyone’s guess, though one likely consequence is an onslaught of inflation.

Enjoy your work and work for whom you admire.

Failing conventionally is the route to go; as a group, lemmings may have a rotten image, but no individual lemming has ever received bad press.

For some reason, people take their cues from price action rather than from values. What doesn’t work is when you start doing things that you don’t understand or because they worked last week for somebody else. The dumbest reason in the world to buy a stock is because it’s going up.

For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.

Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future.