Accounting is the language of business.
Interpretation
Accounting is essential for understanding and managing business operations.
This quote by Warren Buffett highlights the critical role of accounting in the business world. By referring to accounting as the 'language of business,' Buffett emphasizes the importance of financial statements and reporting in comprehending the health and performance of a business, akin to how language enables communication and understanding between people.
In practice
This quote could be used during a business seminar to emphasize the importance of financial understanding.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
If the world couldn't see your results, would you rather be thought of as the world's greatest investor but in reality have the world's worst record? Or be thought of as the world's worst investor when you were actually the best?
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.
I think you should read everything you can. In my case, by the age of 10, I'd read every book in the Omaha public library about investing, some twice. _x000D_ You need to fill your mind with various competing thoughts and decide which make sense.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
Oneβs objective should be to get it right, get it quick, get it out and get it over. Your problem wonβt improve with age.
The extravagance of any corporate office is directly proportional to management's reluctance to reward the shareholders.
I strongly believe the business of a business is to improve the world.
Roughly speaking, when you are dealing with business firms operating in a competitive system, you can assume that they're going to act rationally. Why? Because someone in a firm who buys things at $10 and sells them for $8.00 isn't going to last very long in that firm.
Every single person in every single company is either in sales or affects sales. Every single person in every single company is either in service or affects service.
The companies that survive longest are the one's that work out what they uniquely can give to the world not just growth or money but their excellence, their respect for others, or their ability to make people happy. Some call those things a soul.
There is a huge body of business evidence now showing that energy savings give better service at lower cost with higher profit. We have to tear down barriers to successful markets and we have to create incentives to enter them.
Subscribe for the occasional hand-picked quote. No noise.