2.“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
The best time to invest is several years ago. The second-best time is now. The sooner you get in the better. Don’t wait to buy stocks. Buy stocks and wait.
3. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
The wisdom here is that the focus should be more on the company itself than on the price of the stock. Not to say price is irrelevant. But Buffett is emphasizing that a good price on a stock of a bad company is still a bad idea. What you want to look for is a good company and then buy it when the stock is priced well.
4. “Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”
Here, Buffett is talking about the sunk-cost fallacy. This is the idea that you’ve already put money into something, so you should keep striving to make money with the initial investment even if doing so is both risky and requires more time and money. If you got into a bad deal, it’s better to count your loss and move on than to try to force your way into making something from nothing by dropping more resources into a lost cause.
5. “A public-opinion poll is no substitute for thought.”
6. “The only time to buy these is on a day with no ‘y’ in it.”
There are some stocks that are simply never good options. It doesn’t matter what the newspaper says. It doesn’t matter that your friend has stock in the company. There are some “deals” that just aren’t worth having, so avoid them.
7. “I always knew I was going to be rich. I don’t think I ever doubted it for a minute.”
These words are some of the wisest we can consider when it comes to investing. Buffett is dealing with mindset. You’ve got to know you are going to win. It may not be today. It may not happen the way you think it should. But deep down inside you’ve got to know you will win. That will make all the difference.
Wish these words of wisdom, you are certain to get ahead. Read think. Use them. Apply them. You won’t be disappointed with the results.