Last Updated on March 19, 2026 by Maria
1. Learn from experience.
2. Be suspicious of the motives of people on Wall Street – “Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway.”
3. Don’t be blinded by past performance of a company – “The investor of today does not profit from yesterday’s growth.”
4. Don’t buy into industries whose future performance is difficult to forecast – “I look for businesses in which I think I can predict what they’re going to look like in ten to fifteen years’ time.”
5. Shun any business that is complex and hard to understand – “I want to be able to explain my mistakes. This means I do only the things I completely understand.”
6. Be suspicious of any deal that is widely applauded at the time – “You may pay a very high price in the stock market for a cheery consensus.”
7. Exploit freak conditions that lead even great companies being marked down – “Great opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraisal.”
8. Buy when others are too terrified to – “I buy the stocks when lemmings are headed the other way.”
9. Harness the imperfections and inefficiencies of the stock market which occasionally underprices assets dramatically – “I’d be a bum on the street with a tin cup if the markets were efficient.”
10. When you take a bet, have the courage to do it with meaningful amounts of money – “I can spend money faster than Imelda Marcos when things are right.”
11. Buy businesses at sensible prices – “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. That’s all I’m trying to do.”