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Quote by Warren Buffett

“Although we deal with probabilities and expectations, the actual results can deviate substantially from such expectations, particularly on a short-term basis.”

Quote by Warren Buffett

Author

Warren Buffett, born on August 30, 1930, is a renowned investor. Known as the 'Oracle of Omaha,' he is the chairman and CEO of Berkshire Hathaway, a diversified holding company involved in insurance, railroads, energy, finance, and more. Buffett's investment philosophy emphasizes value investing, and he is known for his long-term investment and stable investment strategies. more

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“Asset values and earning power are the dominant factors affecting the valuation of a controlling interest in a business. Market price, which governs valuation of minority interest positions, is of little or no importance in valuing a controlling interest.”

Littles Values Interest Position Importance Factors Minorities Assets Dominant Earning Valuation

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“I certainly do believe anyone engaged in the management of money should have a standard of measurement, and that both he and the party whose money is managed should have a clear understanding why it is the appropriate standard, what time period should be utilized, etc.”

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“So if you are evaluating others (or yourself!) in the investment field, think out some standards - apply them - interpret them.”

Ifs Thinking Fields Standards Investment

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“Nevertheless, as circumstances presently appear, I feel substantially greater size is more likely to harm future results than to help them. This might not be true for my own personal results, but it is likely to be true for your results.”

Feels Helping Might My Own Results Greater Circumstances Size Harm Being True Nevertheless

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“There is one thing of which I can assure you. If good performance of the fund is even a minor objective, any portfolio encompassing one hundred stocks (whether the manager is handling one thousand dollars or one billion dollars) is not being operated logically. The addition of the one hundredth stock simply can't reduce the potential variance in portfolio performance sufficiently to compensate for the negative effect its inclusion has on the overall portfolio expectation.”

Ifs I Can One Thing Effects Thousand Expectations Hundred Negative Performances Dollars Billions Objectives Managers Fund Inclusion Minors Portfolios Variance

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“The optimum portfolio depends on the various expectations of choices available and the degree of variance in performance which is tolerable. The greater the number of selections, the less will be the average year-to-year variation in actual versus expected results. Also, the lower will be the expected results, assuming different choices have different expectations of performance.”

“I am not in the business of predicting general stock market of business fluctuations. If you think I can do this, or think it is essential to an investment program, you should not be in the partnership.”

Ifs Thinking Should I Can Can Do Essentials Program Investment Partnership Predicting Fluctuation I Can Do This

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“For us to maintain our way of living, we must tell lies to each other and especially to ourselves. The lies are necessary because, without them, many deplorable acts would become impossibilities.”

Way Lying Deceit Impossibility

Book:Endgame

Source: Endgame

“If we start deciding, based on guesses or emotions, whether we will or won't participate in a business where we should have some long run edge, we're in trouble.”

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“Who would think of buying or selling a private business because of someone's guess on the stock market? The availability of a quotation for your business interest (stock) should always be an asset to be utilized if desired. If it gets silly enough in either direction, you take advantage of it. Its availability should never be turned into a livability whereby its periodic aberrations in turn formulate your judgements.”

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