Investment philosophies and strategies of Warren Buffett

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Apart from being a legendary investor, Warren Buffet is well-known for his smart quotes that often find a pride of place in his letter to the shareholders. These quotes precisely summarize his investment approach and philosophical thoughts on making wealth. Here are some of the best quotes that can make a pro investor out of you.

Strategy #1

Always make it sure that you never incur loss.

Strategy #2

Investment is all about laying out money at present to get return in future.

Strategy #3

Don’t invest in a business you have no hang about.

Strategy #4

Don’t jump, instead proceed step by step.

Strategy #5

Can’t decide whether to buy a great company at a fair price or a fair company at a great price? Always go with the first option.

Strategy #6

‘Certainty’ is an important factor. Buy the securities at a fraction of their worth and price will eventually go up once your business starts doing well.

Strategy #7

Remember the difference between price and value. Majority of the people are guided by price movement. Price is what goes out of your pocket for something and value indicates the return you get in exchange.

Strategy #8

The leading companies know how to make the most of time, whereas the mediocre companies lack in this quality.

Strategy #9

The market acts as a voting machine in short run whereas behaves like a weighting machine in long time frame.

Strategy #10

Risk builds up if an investor does not have any fair hang of what he is doing.

Strategy #11

Being approximately right is preferred to being absolutely wrong.

Strategy #12

The key to get good return is to invest in good stocks at the right time and hold them as long as the companies are functioning well.

Strategy #13

Diversification of portfolio is a much touted advice to cut down the risk factor. However, it is surely a good choice if the investors don’t have a clear idea of where they are heading to. Furthermore, diversification is good if you are to preserve your wealth but if you eye on accumulating wealth, concentration of investment is an ideal choice.

Strategy #14

Investment is not rocket science where a person with higher IQ beats those with poor IQ.

Strategy #15

Take initiatives when the opportunities come your way. Don’t worry if you have a long spell of drought in ideas, rain will soon come and just make a good use of them.

Strategy #17

Do you know the reason behind low prices? Our pessimism has a role to play in it. Wrong it would be to say that we prefer doing business in such an ambiance because of our pessimistic attitude but because we love the prices to jump up. Optimism is not good friend with the rational buyers. It won’t be an intelligent approach to purchase an unpopular stock but at the same time, it is not also wise to go with the ‘follow-the-crowd’ principle. Put in your rational thinking because you will be only right when your data and reasons are perfect.

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