I never buy anything unless I can fill out on a piece of paper my reasons. I may be wrong, but I would know the answer to that ...I'm paying $32 billion today for the Coca Cola Company because... If you can't answer that question, you shouldn't buy it. If you can answer that question, and you do it a few times, you'll make a lot of money.
Interpretation
Assess your reasons critically before making any significant investment.
Warren Buffett emphasizes the importance of understanding the rationale behind any major purchase, especially investments. He indicates that by thoroughly analyzing your motivations, you can avoid poor decisions and increase your chances of financial success. This principle highlights the significance of informed decision-making in achieving prosperity.
In practice
During a finance seminar when discussing smart investment strategies.
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.
One’s objective should be to get it right, get it quick, get it out and get it over. Your problem won’t improve with age.
My definition of success is doing what you love. I feel many people do things because they feel they have to, and are hesitant to risk following their passion.
In most cases, when people make more money, they get deeper in debt. This is why money alone does not make you rich.
Don't wait to be successful at some future point, have a successful relationship with the present moment and be fully present in whatever you are doing. That is success.
Most of the successful people I've known are the ones who do more listening than talking.
There is no hope of success for the person who does not have a central purpose, or definite goal at which to aim.
For one true measure of a nation is its success in fulfilling the promise of a better life for each of its members. Let this be the measure of our nation.
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