Top Warren Buffett quotes for investors
When it comes to naming the most famous entrepreneurs and the richest people on the planet, his name might not be one that automatically springs to mind, but there can be little doubt for those in the know that Warren Buffett is among the very best, if not the best, investors the world has ever seen.
Even at the age of 84, Buffett is still a main player in many of the largest investment and business deals on the planet, and he shows no sign of slowing down. For those looking to follow in his footsteps, the good news is that Buffett has never allowed his business philosophy to remain a secret, sharing his wisdom with the world and allowing investors the world over to learn from his successes.
Here, we take a look at just a few of the very best Warren Buffett quotes that all investors should seek to follow when looking to find success.
“Someone is sitting in the shade today because someone planted a tree a long time ago.”
The first of our Warren Buffett quotes…
Every investment you ever make should be seen as a long-term venture. After all, for anyone who is investing in property or any other asset class, the goal is to make money for the future so we can eventually retire and enjoy a comfortable life.
That may seem like a long way off, and the idea of planning for retirement might seem like a scary prospect when you’re in your 20s and 30s, but remember that planting the seeds now will stand you in good stead for having a blossoming future portfolio with fantastic returns and a strong overall value.
And remember, even if your investment is small at the start, “mighty oaks from tiny acorns grow”. It may not seem like you have a portfolio that could be enough to retire on at the moment, but planting the seeds now with long-term goals in mind will go a long way to leading you towards success.
“Only when the tide goes out do you discover who’s been swimming naked.”
A rather unconventional quote, sure, but the lesson we can learn from this Warren Buffett quote is priceless; it never really becomes apparent who has been ill-equipped for the task until things actually go wrong.
Making sure you carry out stress tests on your investment portfolio and are prepared for any sort of market changes throughout can go a long way to making sure you don’t end up losing a lot if something should go wrong.
Look at what you own and what risks those assets face, as well as noting down ways that you can mitigate against these risks. Not resting on your laurels when it comes to testing the ability of your investment to withstand potential problems will give you a far better chance of riding any waves that come along.
“A contrarian approach is just as foolish as a follow-the-crowd strategy.”
In property, when something becomes popular, everyone wants to get a piece of the pie in order to secure an investment that can net them strong returns based on low entry prices and high levels of customer demand. However, there will always be those who look to buck the trend and buy in less crowded markets.
The perception is that by operating in this way, investors will be able to get a cheap way into the market, as well as avoiding crowded sectors, giving themselves a better chance of success.
However, taking a contrarian approach, Buffett says, is as foolish as blindly following the crowd. There are reasons why asset classes such as student property become so popular, and a reasoned and well-researched investment into such areas of the market can be a far safer way to spend than speculating over what might be the next big thing before anyone else has discovered it.
“Never ask a barber if you need a haircut.”
Buffett explains that we should never fully rely on advisors and other people when it comes to making decisions in our investment portfolios. It’s always important to know your limits, of course, but leaning too heavily on professionals can actually be problematic.
They don’t know, after all, what your exact needs and goals are, and they might not always be working to the same ends as you are. It’s always better to know what you want and to tell them what that is rather than the other way around.
In addition, taking time to learn about the market and the best ways to invest for yourself can be a much more rewarding and more beneficial way to realise your own investment goals.
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