In, Out, or Too Tough
There are a lot of things we pass on. We have three baskets: in, out, and too tough.
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Everybody Can’t Beat the Market
The average result has to be the average result. By definition, everybody can’t beat the market.
Related Topics: average, definition, everybody, market, result Identify Mistakes
Quickly identify mistakes and take action.
Related Topics: action, identify, quickly, take, take action Intrinsic Value
I like the stocks of both Berkshire and Wesco to trade within hailing distance of what we think of as...
Related Topics: Berkshire Hathaway, distance, hailing, intrinsic, intrinsic value, like, stocks, think, trade, value, Wesco Simple Ideas
Our ideas are so simple that people keep asking us for mysteries when all we have are the most elementary...
Related Topics: elementary, ideas, mysteries, simple Free Market Ecosystem
I find it quite useful to think of a free market economy — or partly free market economy — as...
Related Topics: economy, ecosystem, equivalent, free, free market economy, market, think, useful Berkshire Hathaway’s Successors
I don’t think our successors will be as good as Warren at capital allocation.
Related Topics: allocation, capital, capital allocation, good, successors, think, Warren Buffett Investment Decisions
An investment decision in the common stock of a company frequently involves a whole lot of factors interacting.
Related Topics: bunch, combine, common, common stock, company, decision, factors, frequently, interacting, investment, involves, stock, trouble Gigantic Macroeconomic Predictions
Gigantic macroeconomic predictions are something I’ve never made any money on, and neither has Warren.
Related Topics: gigantic, macroeconomic, made, money, neither, never, predictions, something, Warren Buffett Ben Franklin’s Financial Freedom
Benjamin Franklin was able to make the contribution he did because he had [financial] freedom.
Related Topics: able, because, Benjamin Franklin, contribution, financial, freedom, make The Word EBITDA
I think that, every time you saw the word EBITDA [earnings], you should substitute the word “bullshit” earnings.
Related Topics: bullshit, earnings, EBITDA, every time, saw, substitute, think Crowd Folly Resembles Lemmings
Crowd folly, the tendency of humans, under some circumstances, to resemble lemmings, explains much foolish thinking of brilliant men and...
Related Topics: behavior, brilliant, circumstances, crowd, explains, folly, foolish, humans, lemmings, men, resemble, tendency, thinking Mutual Fund Directors
If mutual fund directors are independent, then I’m the lead character in the Bolshoi Ballet.
Related Topics: Bolshoi Ballet, character, directors, independent, lead, mutual fund Horse’s Ass vs. Edge of Discipline
When I run into a paradox I think either I’m a total horse’s ass to have gotten to this point,...
Related Topics: discipline, edge, fruitfully, horse's ass, paradox, point, think, total Processing New and Disconfirming Information
Most people early achieve and later intensify a tendency to process new and disconfirming information so that any original conclusion...
Related Topics: achieve, conclusion, disconfirming, information, intact, intensify, later, new, original, people, process, remains, tendency Berkshire Hathaway’s Start
We bought a doomed textile mill [Berkshire Hathaway] and a California S&L [Wesco] just before a calamity. Both were bought...
Related Topics: Berkshire Hathaway, calamity, California, discount, doomed, liquidation, S&L, textile mill, value, Wesco Berkshire Hathaway’s Success
Well, some of our success we predicted and some of it was fortuitous. [Regardless,] like most human beings, we took...
Related Topics: bow, fortuitous, human beings, predicted, success Predicting Investment Outcomes
Common stock investors can make money by predicting the outcomes of practice evolution. You can’t derive this by fundamental analysis...
Related Topics: analysis, biologically, common, common stock, derive, evolution, fundamental, fundamental analysis, investors, make, make money, money, outcomes, practice, predicting, stock A Collection of Turds
If we mix only a moderate minority share of turds with the raisins each year, probably no one will recognize...
Related Topics: collection, large, mix, moderate, only, probably, raisins, recognize, share, turds, ultimately Keep It Simple
One of the greatest ways to avoid trouble is to keep it simple./blockquote>
Related Topics: avoid, avoid trouble, complicated, department, greatest, high priests, keep, pretend, simple, trouble, understand, ways Learning from Warren Buffett
Speaking for the Munger heirs, I hope they continue to ring the last drop of good out of Warren.
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You’re looking for a mispriced gamble. That’s what investing is. And you have to know enough to know whether the...
Related Topics: gamble, investing, know, looking, mispriced, value investing Use Your Checklists
No wise pilot, no matter how great his talent and experience, fails to use his checklist.
Related Topics: checklist, experience, fails, great, pilot, talent, use, wise Buy the Best Companies
If you can buy the best companies, over time the pricing takes care of itself.
Related Topics: best, buy, companies, pricing, takes care, time Lifespan of an Opportunity
A lot of opportunities in life tend to last a short while, due to some temporary inefficiency…
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It is true that Warren had a touch of brain block from working under Ben Graham and making a ton...
Related Topics: Benjamin Graham, block, brain, brain block, money, switch, ton, touch, true, Warren Buffett, worked Closed-bid Auctions
The problem with closed bid auctions is that they are frequently won by people making a technical mistake.
Related Topics: auction, bid, closed, closed bid auctions, Dutch Shell, frequently, mistake, people, problem, Shell, technical, won Excessive Diversification
The idea of excessive diversification is madness.
Related Topics: diversification, excessive, idea, madness Capitalism’s Spikes
When it gets into these spikes, with shortages and uproar and so forth, people go bananas, but that’s capitalism.
Related Topics: bananas, capitalism, crazy, people, shortages, spikes, uproar 
Victimization Mentality is Debilitating
Whenever you think something or some person is ruining your life, it’s you. A victimization mentality is so debilitating.
Related Topics: debilitating, life, mentality, ruining, something, think, victimization, victimization mentality Patience in Investing
If you took our top fifteen decisions out, we’d have a pretty average record. It wasn’t hyperactivity, but a hell...
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The investment game always involves considering both quality and price, and the trick is to get more quality than you...
Related Topics: always, game, investment, investment game, price, quality, simple, trick Elementary Probability
If you don’t get this elementary, but mildly unnatural, mathematics of elementary probability into your repertoire, then you go through...
Related Topics: ass-kicking, ass-kicking contest, contest, elementary, life, long, long life, mathematics, mildly, one-legged man, probability, repertoire, unnatural Consistently Outperforming the Market
It’s not possible for investors to consistently outperform the market. Therefore you’re best served investing in a diversified portfolio of...
Related Topics: best, consistently, diversified, ETFs, exchange traded funds, index funds, investing, investors, low-cost, market, outperform, portfolio, possible Own Stocks without Fretting
I think there’s something to be said for developing the disposition to own stocks without fretting.
Related Topics: developing, disposition, fretting, own, said, something, stocks, think, without Relatively Rich
We’re rich in relation to the business that we’re doing.
Related Topics: business, relation, rich, wealthy A Money Manager’s IQ
“A money manager with an IQ of 160 and thinks it’s 180 will kill you,” he said. “Going with a...
Related Topics: IQ, kill, manager, money, money manager, thinks Spend Less Than You Make
Spend less than you make; always be saving something. Put it into a tax-deferred account. Over time, it will begin...
Related Topics: account, less, make, no-brainer, saving, spend, tax-deferred, time Intelligent Investing
All intelligent investing is value investing.
Related Topics: intelligent, investing, value, value investing How Investment Banks Make Money
Warren talked to guy at an investment bank and asked how they made their money. He said, “Off the top,...
Related Topics: bottom, guy, investment bank, middle, sides, top, Warren Buffett 
