Monday, January 7, 2013

Brilliant Business Quotes

By Virgil Carter

As we look to a new business year and the many challenges ahead, it may be good to listen to the experienced business advice of the world’s richest investor, Warren Buffet. As reported in the Herald Sun, here are some of Mr. Buffet’s most common quotes and some lessons to be learned from them.

1. “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.”: While even Buffet has lost money on his investments, over the long term he has benefited by being conservative with his investment and avoiding fads.

2. “It is better to hang out with people better than you…you’ll drift in that direction”: Never be afraid to ask successful people what they did and how they did it!

3. “I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over”: Too often investors (and leaders) go for a single big win rather than do the many small things that are already available such as having a strategy, reviewing regularly and diversifying.

4. “I buy on the assumption that they could close the market the next day and not reopen it for five years”: The quote is about one’s mindset and decision-making, with the ability to think long term.

5. “Someone’s sitting in the shade today because someone planted a tree a long time ago”: A favorite Buffet quote illustrates why taking a long-term view is important. Many of today’s luxuries are because someone else had a long-term vision and was prepared to invest for the future.

6. “Price is what you pay. Value is what you get”: The price of an investment can mask its true value because of factors such as emotion, market booms or busts, and even tax consequences.

7. “We simply attempt to be fearful when others are greedy and to be greedy when others are fearful”: Perhaps Buffet’s most famous quote, which is at the heart of his belief in avoiding the herd mentality.

8. “The investor of today does not profit from yesterday’s growth”: Many investors like to jump on an investment that’s already doing well—that’s why we have booms and busts—but they really should look to the future.

9. “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down”: Waiting for the right time to buy can be an opportunity within itself.

10. “If a business does well, the stock eventually follows”: The key for sharemarket investing is to find good-quality businesses that will grow over time.

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