27 Warren Buffett Quotes To Inspire Investment Goals

Warren Buffett is one of the most successful investors of all time and is widely considered as the greatest investor of the 20th century.

Throughout his life, he has shared his wisdom and experience through a series of quotes that offer valuable lessons on investing, business, and life in general.

In this collection of quotes, we have compiled some of his most inspiring and insightful words of wisdom, along with interesting stories and anecdotes from his life, that showcase his unique perspective and approach to success.

Whether you’re a seasoned investor or just starting out, these quotes are sure to provide valuable insights into the mind of the Oracle of Omaha and inspire you to achieve your financial goals.

1. “Price is what you pay. Value is what you get.”

This quote highlights the difference between the cost of an investment and its actual worth. The price of a stock or asset is the amount paid for it, while the value is its intrinsic worth based on factors such as earnings, dividends, and future growth potential.

It suggests that an investor should focus on the value of an investment rather than just its price, as a low price does not necessarily equate to a good value.

2. “Risk comes from not knowing what you’re doing.”

This quote emphasises the importance of knowledge and understanding in investing. Without a proper understanding of the market and the investments being made, there is a higher risk of loss.

It suggests that an investor should educate themselves and have a clear understanding of the risks involved in their investments before making any decisions.

3. “It’s better to hang out with people better than you. Pick out associates whose behaviour is better than yours, and you’ll drift in that direction.”

This quote suggests that surrounding oneself with successful and knowledgeable individuals can have a positive influence on one’s own behaviour and success. It highlights the importance of having a supportive network of individuals who can provide guidance and advice and who can inspire one to strive for better outcomes.

4. “The stock market is a device for transferring money from the impatient to the patient.”

This quote highlights the importance of patience in investing. The stock market can be volatile, but those who have the patience to wait for long-term gains are more likely to succeed than those who make impulsive decisions based on short-term fluctuations.

It suggests that an investor should have a long-term perspective and not be swayed by short-term market movements.

5. “Successful investing takes time, discipline and patience.”

This quote emphasises the three key traits needed for success in investing: time to let investments grow, discipline to stick to a strategy, and patience to weather market fluctuations. It suggests that an investor should have a long-term perspective, stick to a well-thought-out investment strategy, and not be swayed by short-term market movements.

Additionally, it highlights the importance of having the discipline to avoid impulsive decisions and to stick to a well-thought-out plan.

6. “The most important quality for an investor is temperament, not intellect.”

This quote suggests that having the right mindset and approach is more important than having a high level of intelligence when it comes to investing. It highlights the importance of having a level-headed and rational approach, as well as avoiding emotional reactions to market movements.

A calm and rational temperament is key for making sound investment decisions and avoiding impulsive actions.

7. “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”

This quote emphasises the importance of having a long-term perspective when investing. It suggests that an investor should only consider investments that they are willing to hold onto for a significant period of time, as short-term investing can be more speculative and less likely to result in long-term gains.

8. “You only have to do very few things right in your life so long as you don’t do too many things wrong.”

This quote suggests that investing success is often more about avoiding mistakes than making the right decisions. It highlights the importance of avoiding major mistakes, such as investing in a company that is not financially sound or not diversifying one’s portfolio, as these mistakes can have a significant impact on long-term investment success.

9. “You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.”

This quote suggests that investing is not solely about having a high level of intelligence. It highlights the importance of having a well-thought-out investment strategy and avoiding impulsive decisions, as these are key factors in investment success. Additionally, it suggests that investing success is not just about having a high IQ, but also about having the right approach and mindset.

10. “The best investment you can make is in your own abilities. Anything you can do to develop your own abilities is likely to be more productive in the long run than an investment in the securities markets.”

This quote highlights the importance of self-investment and personal development. Warren Buffett believes that investing in oneself, such as acquiring new skills or knowledge, is more valuable in the long run than investing in stocks or securities. By improving your abilities and becoming more knowledgeable, you increase your chances of success in all areas of life, including finance.

11. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

This quote highlights the importance of investing in quality companies. Buffett believes that it is better to invest in a company with a strong track record and solid financials, even if it is priced a bit higher than to invest in a cheaper company that may not perform as well.

This quote emphasises the value of investing in companies with a proven track record of success and stability rather than simply trying to find the cheapest stock.

12. “If you aren’t willing to react with equanimity to a market price decline of 50% two or three times a century, you aren’t fit to be a common shareholder.”

This quote highlights the importance of having a long-term perspective when investing. According to Buffett, stock prices can fluctuate greatly in the short term, and it is important for investors to be able to handle these fluctuations without panic.

This quote encourages investors to have a calm and rational approach to investing, even when the market is experiencing a downturn.

13. “The business schools reward difficult, complex behaviour more than simple behaviour, but simple behaviour is more effective.”

This quote highlights the idea that simple solutions are often more effective than complex ones. According to Buffett, business schools often reward complex behaviour, but in the real world, simple solutions are often more effective.

This quote encourages people to focus on finding simple and straightforward solutions to problems rather than trying to find overly complicated solutions.

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

This quote is a warning against relying too heavily on past experiences and information when making business decisions. The “rearview mirror” represents the past, and the “windshield” represents the future.

According to Buffett, it’s easy to look back and see what has happened, but it’s much harder to predict what will happen in the future.

15. “The most important thing to do if you find yourself in a hole is to stop digging.” 

This quote is a simple but powerful reminder to assess the situation when things aren’t going well and take steps to make changes. By recognising that you are in a difficult situation and taking action to stop making it worse, you can begin to work towards a solution.

16. “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” 

This quote summarises Warren Buffett’s approach to investing, which is often referred to as “value investing.”

He believes that the key to successful investing is to be contrarian, buying when others are selling and selling when others are buying. By doing this, he aims to take advantage of market inefficiencies and capitalise on fear and greed in the market.

17. “Our favourite holding period is forever.” 

This quote reflects Warren Buffett’s long-term investment philosophy. He believes that the best way to achieve success as an investor is to find great companies and hold onto their stock for a long time, even indefinitely.

By doing this, he aims to avoid the short-term fluctuations of the market and instead focus on the long-term growth potential of the company. This approach has been a key factor in his success as an investor and has helped him to build a significant fortune over the years.

18. “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.” 

This quote emphasises the importance of preserving capital in investing. Warren Buffett believes that the primary goal of an investor should be to avoid losing money, as this can have a devastating impact on their portfolio. By following this rule, he believes that investors can reduce their risk and increase their chances of success over the long term.

The second rule serves as a reminder to always prioritise avoiding losses and to never forget this fundamental principle. This approach helps to ensure that investors are always making decisions that are in line with their long-term financial goals.

19. “Someone’s sitting in the shade today because someone planted a tree a long time ago.”  

This quote highlights the importance of taking a long-term perspective in investing. Warren Buffett emphasises the idea that the benefits of smart investments often take time to materialise and that it is important to be patient and not give up on a good investment too soon.

The metaphor of the tree being planted and providing shade many years later serves to illustrate this point. By taking a long-term approach and investing in quality companies, investors can reap the rewards of their efforts over time, just as someone sitting in the shade benefits from the tree that was planted in the past.

20. “Risk comes from not knowing what you are doing.” 

This quote highlights the importance of understanding the risks involved in an investment. According to Warren Buffett, the greatest risk in investing is not knowing what you are doing. When an investor lacks knowledge or understanding of a particular investment, they are more likely to make mistakes and suffer losses.

It’s crucial for investors to educate themselves and thoroughly understand the risks and potential rewards of any investment before making a decision. By taking the time to understand the investment, investors can make informed decisions and minimise their risk.

21. “Never invest in a business you cannot understand.” 

This quote is a reminder that an investor should only invest in businesses that they have a clear understanding of.

According to Warren Buffett, it’s important for investors to understand the business model, financials, and industry of any potential investment. By investing in a business that they don’t understand, investors run the risk of making poor investment decisions and losing money.

Instead, investors should only invest in businesses that they understand and feel confident in, which will help to minimise their risk and increase their chances of success.

22. “No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.” 

This quote highlights the importance of patience and persistence in achieving success. According to Warren Buffett, success takes time and effort, and there are some things that cannot be rushed.

This quote is often used to emphasise the need for patience in investing, as well. Investors should not expect immediate returns or try to get rich quickly. Instead, they should be patient and focus on the long term, as investments often take time to grow and mature.

By being patient, investors can increase their chances of success and avoid making impulsive decisions that could lead to losses.

23. “Never depend on a single income. Make an investment to create a second source.” 

This quote emphasises the importance of financial diversification and building multiple streams of income.

According to Warren Buffett, relying solely on a single source of income can be risky and limit financial security. Instead, he suggests creating a second source of income through investments, such as stocks, bonds, real estate, or a small business. This can help to reduce financial risk and provide a cushion in case of unexpected events.

Additionally, having multiple sources of income can help to increase overall financial stability and provide greater financial freedom. By investing in various assets, individuals can create a well-rounded and diversified portfolio, which can help to maximise returns and minimise losses.

24. “We never want to count on the kindness of strangers in order to meet tomorrow’s obligations. When forced to choose, I will not trade even a night’s sleep for the chance of extra profits.” 

This quote reflects Warren Buffett’s philosophy of financial stability and the importance of being self-reliant.

According to him, it is unwise to rely on others to fulfil your financial obligations, and instead, you should have sufficient resources to meet your own needs. He also emphasises the importance of being financially responsible and making decisions that promote long-term stability rather than short-term gains.

In addition, he highlights the importance of maintaining a good work-life balance, as he believes that sacrificing one’s peace of mind and sleep for the sake of potential profits is not worth it. Overall, this quote underscores the importance of being financially self-sufficient and making decisions that prioritise stability and well-being over short-term gains.