Buy companies with strong histories of profitability and with a dominant business franchise.
By periodically investing in an index fund, the know-nothing investors can actually outperform most investment professionals.
By the age of 10, I’d read every book in the Omaha public library about investing, some twice. You need to fill your mind with various competing thoughts and decide which make sense. Then you have to jump in the water – take a small amount of money and do it yourself. Investing on paper is like reading a romance novel vs. doing something else. You’ll soon find out whether you like it. The earlier you start, the better.
Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a ‘romantic’.
Can you really explain to a fish what it’s like to walk on land? One day on land is worth a thousand years of talking about it, and one day running a business has exactly the same kind of value.
Cash combined with courage in a time of crisis is priceless.
Cash never makes us happy, but it’s better to have the money burning a hole in Berkshire’s pocket than resting comfortably in someone else’s.
Chains of habit are too light to be felt until they are too heavy to be broken.
Charlie and I would follow a buy-and-hold policy even if we ran a tax-exempt institution.
Culture, more than rule books, determines how an organization behaves.