Markets

Warren's Wit And Wisdom

Almost every investor knows about Warren Buffett. He's the brilliant stock picker worth billions. Everyone wants to know what Warren knows. The great thing about Mr. Buffett is that he tells everyone most of what he knows. The problem is most of us don't follow his advice.

But there's more to Mr. Buffett than brilliant investing. He's also very funny and has a way of getting his point across that is unique. Following are some of my favorite quotes from the Oracle of Omaha. If you like his style, I highly recommend you read his annual letter to shareholders, posted on the BerkshireHathaway Web site (www.berkshirehathaway.com). There's also a Web site devoted to his sayings: (http://www.brainyquote.com/quotes/authors/w/warren_buffett.html) If you like your reading in book form, there's Warren Buffett Speaks by Janet Lowe. Here are just a few of Mr. Buffett's observations.

A public opinion poll is no substitute for thought.

Derivatives are financial weapons of mass destruction.

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

In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.

It's never paid to bet against America. We come through things, but it's not always a smooth ride.

Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars.

Our favorite holding period is forever.

Risk comes from not knowing what you're doing.

Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.

Somone's sitting in the shade today because someone planted a tree a long time ago.

We believe that according the name "investors" to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a "romantic".

When you combine ignorance and leverage, you get some pretty interesting results.

With enough insider informaton and a million dollars, you can go broke in a year.

I drink 5 Cherry Cokes a day. That's 750 calories. I would have lost 70 pounds a year if I didn't drink them. Really, it's been a lifesaver.

Now that you're the richest man in America, what is your next goal? asked a shareholder at the annual meeting. "That's easy," Buffett replied. "To be the oldest man in America."

Retirement plans? About 5 to 10 years after I die.

- Ted Allrich

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.