Image Model: Lara Marielle
This now completes my commitment — to readers of A Wonderful Blog as well as to myself — to transcribe and post all 125 Warren Buffett aphorisms from the book, The Tao of Warren Buffet. †This is the 2nd and last installment, the first one having been posted last January 7.
Again, I have posted this here only as a handy reference. †If you want a detailed and comprehensive explanation of the aphorisms, go buy the book. 
Why Not to Diversify
63. †I canít be involved in fifty or seventy-five things.† Thatís a Noahís Ark way of investing ñ you end up with a zoo that way.† I like to put meaningful amounts of money in a few things.
64. †Diversification is a protection against ignorance.† It makes little sense for those who know what theyíre doing.
65. †Wall Street makes its money on activity.† You make your money on inactivity.
66. †Why not invest your assets in the companies you really like?† As Mae West said, ìToo much of a good thing can be wonderful.î
67. †Wide diversification is only required when investors do not understand what they are doing.
68. †You only have to do a very few things right in your life so long as you donít do too many things wrong.
Discipline,†Prudence, and Patience
69. †If you let yourself be undisciplined on the small things, you will probably be undisciplined on the large things as well.
70. †There is nothing like writing to force you to think and get your thoughts straight.
71. †The less prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own affairs.
72. †Iíve never swung at a ball while itís still in the pitcherís glove.
73. †Imaging that you had a car and that was the only car youíd have for your entire lifetime.† Of course, youíd take care for it well, changing the oil more frequently than necessary, driving carefully, etc.† Now, consider that you only have one mind and one body.† Prepare them for life, care for them.† You can enhance your mind over time.† A personís main asset is themselves, so preserve and enhance yourself.
74. †I buy expensive suits.† They just look cheap on me.
75. †In the search for companies to acquire, we adopt the same attitude one might find appropriate in looking for a spouse: it pays to be active, interested, and open-minded, but it does not pay to be in a hurry.
Beware the folly of greed
76. †When proper temperament joins with the proper intellectual framework, then you get rational behavior.
77. †The fact that people are full of greed, fear, or folly is predictable.† The sequence is not predictable.
78. †A stock doesnít know that you own it. 79. †When you combine ignorance and borrowed money, the consequence can get interesting.
80. †Of the seven deadly sins, envy is the silliest, because if you have it, you donít feel better.† You feel worse.† Iíve had some good times with gluttonyÖ we wonít get into lust.
81. †We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
When to Sell, When to Leave
82. †The most important thing to do if you find yourself in a hole is to stop digging.
83. †If at first you do succeed, quit trying.
84. †I buy stocks when the lemmings are headed the other way.
85. †Most people get interested in stocks when everyone else is.† The time to get interested is when no one else is.† You canít buy what is popular and do well.
86. †We donít go into companies with the thought of effecting a lot of changes.† That doesnít work any better in investments than it does in marriages.
87. cRisk comes from not knowing what you are doing.
88. The only time to buy these is on a day with no y in it. (Note: Buffett is talking about an IPO of a companyís stork or bonds through an investment bank.)
89. †We also believe candor benefits us as managers:† The CEO who misleads others in public eventually misleads himself in private.
90. †That which is not worth doing at all is not worth doing well.
91. †A good managerial record is far more a function of what business boat you get into that it is of how effectively you row.† 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.
Mistakes to Beware of
92. †We never look back.† We just figure there is so much to look forward to that there is no sense thinking of what we might have done.† It just doesnít make any difference.† You can only live life forward.
93. †I want to be able to explain my mistakes.† This means I do only the things I completely understand.
94. If you donít make mistakes, you canít make decisions.
Your Circle of Competence
95. †Investment must be rational; if you donít understand it, donít do it.
96. †If you understand and idea, you can express it so others can understand it.
97. †If they need my help to manage the enterprise, we are probably both in trouble.
98. †Our method is very simple.† We just try to buy businesses with good-to-superb underlying economics run by honest and able people and buy them at sensible prices.† Thatís all Iím trying to do.
99. †If we canít find things within our circle of competence, we donít expand the circle.† Weíll wait.
100. †Any business craving of the leader, however foolish, will be quickly supported by studies prepared by his troops.
101. †In the business world, the rearview mirror is always clearer than the windshield.
102. †Iím very suspect of the person who is very good at one business ñ it also could be a good athlete or a good entertainer ñ who starts thinking they should tell the world how to behave on everything.† For us to think that just because we made a lot of money, weíre going to† be better at giving advice on every subject ñ well, thatís just crazy.
103. †It wonít be the economy that will do in invertors; it will be investors themselves.
The Price You Pay
104. †For some reason people take their cues from price action rather than from values.† Price is what you pay.† Value is what you get.
105. †That which goes up doesnít necessarily have to come down.
106. †The key is that stock market basically just sets prices, so it exists to serve you, not instruct you.
107. †At the beginning, prices are driven by fundamentals, and at some point, speculation drives them.† Itís that old story:† What the wise man does in the beginning, the fool does in the end.
108. †The smartest side to take in a bidding war is the losing side.
109. †A pin lies in wait for every bubble, and when the two eventually meet, a new wave of investors learn some very old lessons.
110. †I never attempt to make money on the stock market.† I buy on the assumption that they could close the market for the next day and not reopen it for five years.
Long-Term Economic Value Is the Secret to Exploiting Short-Term Stock Market Folly.
111. †The stock market is a no-called-strike game.† You donít have to swing at everything ñ you can wait for your pitch.† The problem when youíre a money manager is that your fans keep yelling, ìSwing, you bum!î
112. †What we learn from history is that people donít learn from history.
113. †Look at stock market fluctuation as your friend rather than your enemy ñ profit from folly rather than participate in it.
114. †Great investment opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised.
115. †Uncertainty is actually the friend of the buyer of long-term values.
116. †To many on Wall Street, both companies and stocks are seen only as raw materials for trades.
117. †No matter how great the talent or effort, some things just take time:† You canít produce a baby in one month by getting nine women pregnant.
118. †If past history was all there was to the game, the richest people would be librarians.
119. †Only buy something that youíd be perfectly happy to hold if the market shut down for ten years.
120. †The investor of today does not profit from yesterdayís growth.
121. †Iíd be a bum on the street with a tin cup if the markets were efficient.
122. †As far as I am concerned, the stock market doesnít exist.† It is only there as a reference to see if anybody is offering to do anything foolish.
123. †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.
124. †We do not have, never have had, and never will have an opinion about where the stock market, interest rates, or business activity will be a year from now.
125. †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.
<<< end >>>
I believe this website holds very superb written subject matter content.
We are actually in the enviornment of promoting as opposed to promoting; too many business owners confuse the two or suppose they are one and the same. To effectively market yourself, you must display to your potential ‘consumers’ you may have what they want. This means creating a brand picture for your self that differentiates you sufficient so folks will need to be with you.
Fed up with obtaining low amounts of useless traffic to your site? Well i want to inform you of a brand new underground tactic that makes me personally $900 per day on 100% AUTOPILOT. I could be here all day and going into detail but why dont you simply check their website out? There is a great video that explains everything. So if your seriously interested in making simple cash this is the site for you. Auto Traffic Avalanche
grabe naman. pupunta punta sa Punta De Uian tapos puro reklamo. hindi nalang inenjoy. haha!
Just finished reading “The Warren Buffett Way!” Great Book! Buffett is an iconoclast!