As American philanthropist and investor Warren Buffett announces his retirement at the grand age of 95, he will always be remembered as one of the leading voices of the business and finance world.
With a host of memorable quotes and advice for investors, he has long been seen as something of a mentor for the next generation of investors.
Here, we’ll take a look at some of his finest financial soundbites, along with those from other successful investors, to uncover the secrets to their success.
1. “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.” – Warren Buffett
Starting with the great man himself, this quote comes from a letter he wrote to investors at his company, Berkshire Hathaway. Essentially, it confirms that investments should always be for the long term.
This means keeping stock through volatility, crashes, good times, and bad times.
2. “Know what you own and why you own it.” – Peter Lynch
Fads abound in the investment world, and it can be tempting to invest in the next big thing or the latest “flavour of the month”.
Ultimately, your portfolio should reflect your long-term goals rather than being filled with short-term crazes. Be sure to stay focused on your goals.
3. “If you skilfully follow the multidisciplinary path, you will never wish to come back. It would be like cutting off your hands.” – Charlie Munger
Successful investing is best achieved with expert help. Charlie Munger had wide-ranging knowledge. Economics, accounting and finance are maybe the obvious places to start as an investor, but politics, psychology, history and sociology all play a role too.
You don’t need to become an expert across multiple fields, but curiosity and an interest in global politics and economies might help. For example, looking at the history of the markets following extreme volatility can help you to understand what might lie ahead.
Of course, if you’re not interested in these fields, you don’t need to be. That’s what we’re here for!
4. “In a speculative market, what counts is imagination and not analysts.” – Benjamin Graham
Widely known as the “father of value investing”, Benjamin Graham was also Warren Buffett’s mentor.
Here, he refers to the importance of investor attitude, or optimism versus pessimism, when markets are driven by expectations of future price appreciation.
5. “Successful investing in the stock market is not brain surgery. Anyone can be a successful investor.” – Geraldine Weiss
The “grand dame of dividends” Geraldine Weiss was an investment adviser and investor. Unable to get a job as a stockbroker or analyst in the 1960s, as companies believed a female wouldn’t be successful, she decided to make her own success.
This was in the shape of a newsletter she co-founded, Quality Investment Trends, marking her as the first woman to own an investment advisory service.
Thankfully, times have moved on, but she proved very clearly that opportunities should be equal for all.
6. “The strongest bull markets I’ve been in are built on walls of worry.” – Cathie Wood
Investor Cathie Wood is known for her astute insights.
Here, she references the common reaction of fear and panic when markets decline, noting that what can seem like a negative situation often brings the biggest rewards in the long term. Or, in other words, don’t panic!
7. “I’m only rich because I know when I’m wrong.” – George Soros
One of the most successful financiers in history, George Soros, emphasises that with investing comes mistakes and bad decisions. But rather than doubling down on these, calmly acknowledging and accepting them can help you to rectify the situation.
This might mean acknowledging your own biases, adjusting your strategy, or rethinking your attitude to risk.
8. “There were no female role models, so I just blazed my own path.” – Muriel Siebert
As the first woman to own a seat on the New York Stock Exchange, Muriel Siebert didn’t wait around to let others lead. She made her own way and helped to expand opportunities for women in finance.
If there’s an opportunity you want to take, take it. Don’t wait for someone else to show you how.
9. “I’ve seen very few people in the world accomplish anything unless they were optimists.” – Bill Ackman
Hedge fund manager and billionaire Bill Ackman gives his take on attitude and approach to investments.
Yes, you need data and facts and confidence… but a healthy dose of optimism will take you far.
10. “Someone’s sitting in the shade today because someone planted a tree a long time ago.” – Warren Buffett.
Going full circle, Warren Buffett used the perfect metaphor for a long-term investment strategy. Like trees, investments take time to grow. But with patience, you will eventually reap the rewards.
Get in touch
If you’re looking for an independent financial adviser in Milton Keynes or Olney, look no further. At Jane Smith Financial Planning, we’ve been helping clients for 30 years, so contact us at info@janesmithfinancial.com or call 01234 713131 to see what we can do for you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only. All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
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