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Warren Buffett on Business: Principles from the Sage of Omaha

Book by Warren Buffett · 7 quotes · Investing, Buffets, Business

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Warren Buffett on Business: Principles from the Sage of Omaha Quotes

“For example: (1) As if governed by Newton's First Law of Motion, an institution will resist any change in its current direction; (2) Just as work expands to fill available time, corporate projects or acquisitions will materialize to soak up available funds; (3) Any business craving of the leader, however foolish, will be quickly supported by detailed rate-of-return and strategic studies prepared by his troops; and (4) The behavior of peer companies, whether they are expanding, acquiring, setting executive compensation or whatever, will be mindlessly imitated.”

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Book:Warren Buffett on Business: Principles from the Sage of Omaha
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“Managers thinking about accounting issues should never forget one of Abraham Lincoln's favorite riddles: How many legs does a dog have, if you call a tail a leg? The answer: Four, because calling a tail a leg doesn't make it a leg.”

IfsThinkingShouldDoeAnswersForgetIssuesFourDogCallingManagementLegsManagersNever ForgetTailsAbrahamAccountingRiddle
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“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.”

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Book:Warren Buffett on Business: Principles from the Sage of Omaha
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“Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life. The calculation of intrinsic value, though, is not so simple. As our definition suggests, intrinsic value is an estimate rather than a precise figure, and it is additionally an estimate that must be changed if interest rates move or forecasts of future cash flows are revised.”

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“If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value.”

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“The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down.”

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