No formula in finance tells you that the moat is 28 feet wide and 16 feet deep. That's what drives the academics crazy. They can compute standard deviations and betas, but they can't understand moats.
We try to buy businesses with good-to-superb underlying economics run by honest and able people and buy them at sensible prices. That's all I'm trying to do.
If you understood a business perfectly and the future of the business, you would need very little in the way of a margin of safety. So, the more vulnerable the business is, assuming you still want to invest in it, the larger margin of safety you'd need. If you're driving a truck across a bridge that
Banking is very good business if you don't do anything dumb.
Someone is sitting in the shade today because someone planted a tree a long time ago. Warren Buffet
The value of a business is the cash it's going to produce in the future.
Risk is a part of God's game, alike for men and nations.
The advice "you never go broke taking a profit" is foolish.
As one of my older friends says, "Nostalgia just isn't what it used to be." Let's take a stab at it, anyway.
We don't get paid for being busy, we get paid for being right.
We do not have, nor have had, and never will have an opinion about where the stock market, interest rates, or business activity will be a year from now.
I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over. Warren Buffet
If past history was all there was to the game, the richest people would be librarians. Warren Buf
Nevertheless, as circumstances presently appear, I feel substantially greater size is more likely to harm future results than to help them. This might not be true for my own personal results, but it is likely to be true for your results.
An investor should act as though he had a lifetime decision card with just twenty punches on it.
I always knew I was going to be rich. I don't think I ever doubted it for a minute.
What could be more advantageous in an intellectual contest - whether it be chess, bridge, or stock selection - than to have opponents who have been taught that thinking is a waste of energy?
Having a large amount of leverage is like driving a car with a dagger on the steering wheel pointed at your heart. If you do that, you will be a better driver. There will be fewer accidents but when they happen, they will be fatal.
Investing is laying out money now to get more money back in the future.
If you know how to value businesses, it's crazy to own 50 stocks or 40 stocks or 30 stocks, probably because there aren't that many wonderful businesses understandable to a single human being in all likelihood. To forego buying more of some super-wonderful business and instead put your money into #3
An investor will succeed by coupling good business judgment with an ability to insulate his thoughts and behavior from the super-contagious emotions that swirl about the marketplace.
You don't have to be a genius to invest well
I knew a lot about what I did when I was 20. I had read a lot, and I aspired to learn everything I could about the subject.
Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.
You should be unconcerned about short-term price action when you own the securities directly, just as you were unconcerned when you owned them indirectly through BPL. I think about them as businesses, not "stocks", and if the business does all right over the long term, so will the stock.
I never buy anything unless I can fill out on a piece of paper my reasons. I may be wrong, but I would know the answer to that ...I'm paying $32 billion today for the Coca Cola Company because... If you can't answer that question, you shouldn't buy it. If you can answer that question, and you do it
It's a lot easier to buy things than it is to sell them.
The market system rewards me outlandishly for what I do, but that doesn't mean I'm any more deserving of a good life than a teacher or a doctor or someone who fights in Afghanistan.
Too often, a vast collection of possessions ends up possessing its owner.
Chains of habit are too light to be felt until they are too heavy to be broken.