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News and Insights » Warren Buffet on Fear, Greed and Sticking with a Plan

As global markets jib and jab, rock and roll, giving rise to panic and worry, I was reflecting on a few of my favorite quotes from Warren Buffet about investing. He has a remarkable capacity to capture human behavior and wisdom within just a few words. 

Here are a few of my favorites about greed, patience, fear and sticking with a plan:

Fear and Greed
"Two super-contagious diseases, fear and greed, will forever occur in the investment community. The timing of these epidemics will be unpredictable  ... We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."

"No matter how great the talent or efforts, some things just take time. You can't produce a baby in one month by getting nine women pregnant."

"Our favorite holding period is forever."

"I don't look to jump over seven-foot bars. I look around for one-foot bars that I can step over."

On sticking to a plan developed with your financial advisor
"Risk comes from not knowing what you're doing."

"Diversification is a protection against ignorance."

"Only when the tide goes out do you discover who's been swimming naked."

"What counts for most people in investing is not how much they know, but how realistically they define what they don't know."

On gold

"I will say this about gold. If you took all the gold in the world, it would roughly make a cube 67 feet on a side ... Now for that same cube of gold, it would be worth at today's market prices about $7 trillion — that's probably about a third of the value of all the stocks in the United States. For $7 trillion, you could have all the farmland in the United States, you could have about seven Exxon Mobil Corporations plus a trillion dollars of walking-around money. ... If you offered me the choice of looking at some 67-foot cube of gold all day, ... call me crazy, but I'll take the farmland and the Exxon Mobil Corporations."

My favorite Buffett quote

"You only have to do a very few things right in your life so long as you don't do too many things wrong."  Why is this my favorite Buffett quote? Because my career has witnessed consistently that long-term financial peace (and success) belongs to those investors who consistently focus on doing a few things right and on avoiding the worst errors, i.e. chasing returns when markets go a little crazy for a period of time. Stick with a plan.

August 28th, 2015 @ 10:04am by Patrick
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