Warren Buffett Book of Investing Wisdom

350 Quotes from the World's Most Successful Investor

Robert L. Bloch, Robert L. Bloch

• Publisher: Skyhorse
• Year: 2021
• ISBN:
  9781510759763
• Topic: Business
• Subtopic: Stocks
• Index: Business

Compiled by the son of the cofounder of H&R Block, a collection of business quotes and advice from the most successful investor of the twentieth century, Warren Buffett. Warren Buffett, chairman and CEO of Berkshire Hathaway, is widely considered the most successful investor of the twentieth century. Since the early 1950s, Buffett has proved himself to be an astute investor, and he turned Berkshire Hathaway from a struggling small textile business into the tenth-largest public company in the world, valued at more than $600 billion. Buffett is well known for his simple but invaluable principles regarding investing and finances, and countless businessmen and people looking to be smarter with their money and their investments have turned to Buffett for his advice. One of those people is Robert Bloch, son of the cofounder of the tax preparation company H&R Block. The Warren Buffett Book of Investing Wisdom contains 350 quotes that Bloch has personally found to be indispensable to financial success. With the written blessing of Buffett himself, Bloch has selected the best of Buffett, wisdom that will guide you to becoming the most disciplined and rational long-term investor you can be.

Over a decade ago, I had the good fortune to meet Warren Buffett when he became a major shareholder in H&R Block, the tax preparation company my father, Henry Bloch, co-founded in 1955.

Warren and my father have much in common. Both entrepreneurs were born before World War II in the Mid-West and came from middle class families. They are extremely down to earth and have loads of good common sense and honesty. Without a doubt, both enjoy “the process more than the proceeds” of business and investing.

Buffett’s investment principles are “simple, old, and few.” Much like my father, most of Warren’s success is due to his personality, character, and willingness to learn from and teach others. Of his many outstanding qualities, the role as teacher is the one for which, Warren states, he would most like to be remembered.

Recently I have made Warren my teacher and mentor by reading and re-reading his quotes until they have become a part of me. As the “Oracle of Omaha” said, “It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” As investors, we should all strive to drift toward Warren’s direction.

There have been dozens of books published that have attempted to capture the philosophy and personality of Warren Buffett; but words cannot really describe this amazing man . . . except maybe his own words. Buffett does Buffett better than anyone. Since Warren has never written an autobiography, the quotes in this book are the most direct and unfiltered source we have.

After experiencing several bear markets over his lifetime, Warren has learned to stay the course and stick to his investing principles, when other investors were selling or rethinking their strategies. Therefore a proven discipline is an essential element in becoming a successful investor. This book has helped me become a more disciplined investor.

I am confident it will not only help you become more disciplined but also a more RATIONAL, OPTIMISTIC, and LONG-TERM investor. The ultimate act of generosity is Warren Buffett sharing his genius with the individual investor!

—Robert L. Bloch

Note: I am honored that Warren Buffett has given me written permission to use his inspiring words in this volume.

Opportunities abound in America.

In the business world, the rearview mirror is always clearer than the windshield.

American business will do just fine over time. And stocks will do well just as certainly, since their fate is tied to business performance. Periodic setbacks will occur, yes, but investors and managers are in a game heavily stacked in their favor. (The Dow Jones Industrials advanced from 66 to 11,497 in the twentieth century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression, and many recessions. And don’t forget that shareholders received substantial dividends throughout the century as well.)

Risk comes from not knowing what you are doing.

Since the basic game is so favorable, Charlie* and I believe it’s a terrible mistake to try to dance in and out of it based upon the turn of tarot cards, the predictions of “experts,” or the ebb and flow of business activity. The risks of being out of the game are huge compared to the risks of being in it.

* Charlie Munger is the vice-chairman of Berkshire Hathaway.

Our experience with newly minted MBAs has not been that great . . . It’s difficult to teach a new dog old tricks.

Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.

You will move in the direction of the people that you associate with. So it’s important to associate with people that are better than yourself. The friends you have will form you as you go through life. Make some good friends, keep them for the rest of your life, but have them be people that you admire as well as like.

To swim a fast 100 meters, it’s better to swim with the tide than to work on your stroke.

Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway.

I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.

Buy companies with strong histories of profitability and with a dominant business franchise.

Rule No. 1: Never lose money.

Rule No. 2: Don’t forget No. 1.

When I buy a stock, I think of it in terms of buying a whole company, just as if I were buying the store down the street. If I were buying the store, I’d want to know all about it. I mean, look at what Walt Disney was worth on the stock market in the first half of 1966. The price per share was $53, and this didn’t look especially cheap; but on that basis, you could buy the whole company for $80 million when “Snow White,” “Swiss Family Robinson,” and some other cartoons, which had been written off the books, were worth that much; and then you had Disneyland and Walt Disney, a genius, as a partner.

You don’t want a capital market that functions perfectly if you’re in my business. People continue to do foolish things no matter what the regulation is, and they always will.

We went from a wooded land to an incredible, absolute abundance of riches because the United States has had a system that can unleash human potential. Never bet against what humans can accomplish if they’re operating in the righ...