To help celebrate Warren Buffett’s 83rd birthday a few years ago Motley Fool suggested 83 reasons why they love their hero.
Here’s a few of them…
- His perspective: “In the 20th entury, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”
- His time frame for the long run consistently exceeds his life span.
- He says it better: “Someone’s sitting in the shade today because someone planted a tree a long time ago.”
- Classic line: “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.”
- Once branded a stingy miser (rightly or wrongly), Buffett has evolved (assuming it wasn’t his intention from the start) into one of the most effective philanthropists I know. After growing his potential givings at a 20% compounded rate per year, he set a plan to give most of it away.
- “I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.” Contrast that with computer algorithm-based trading, day trading, and some of the moves you’ve made in your own account.
- Buffett’s smarter than you and I, but he’s kind enough to let us feel otherwise.
- “You only have to do a very few things right in your life so long as you don’t do too many things wrong.”
- He has the ability to resist the allure of the quick fix or quick buck when longer-term dynamics are at play.
- An investing truism: “Price is what you pay. Value is what you get.”
- “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”
- Classic line: “Only when the tide goes out do you discover who’s been swimming naked.”
- “Risk comes from not knowing what you’re doing.”
- Trash-bin-diving caution No. 1: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
- The contrarian credo: “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
- He converts a deadly sin into a virtue: “You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of ideas come along, and I’ve had long dry spells. If I get an idea next week, I’ll do something. If not, I won’t do a damn thing.”
- Buffett buys what he knows (and frequently loves), but he doesn’t overpay out of affection. He has the discipline to wait decades for the right opportunity.
- Before making his money work for him, he worked for his money early on with a series of jobs, schemes, and ventures.
These included a paper route, selling chewing gum door to door, a pinball business, a sales job at J.C. Penney’s, caddying, marking up refurbished golf balls, and founding a horse-racing tip sheet.
- It’s very possible that the house you live in is worth more than the house Buffett lives in — the house in Omaha he bought in 1958.
- Over the years, he has relied on a similar set of answers to oft-asked questions. That his philosophy has stayed stable throughout that time is remarkable.
- His wealth has bought him the ultimate trophy: He does whatever he wants to do just about every single day.
You can read the rest in the Motley Fool article here.
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