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Quote by Warren Buffett

“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.”

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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“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.”

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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.”

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“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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“Market price, while used exclusively to value our investments in minority positions, is not a relevant factor when applied to our controlling interests.”

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“The dominant factors affecting control valuations are earning power (past and prospective) and asset values.”

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“In earlier years, a lesser effort produced literally dozens of comparable opportunities. It is difficult to be objective about the causes for such diminution of one's own productivity. Three factors that seem apparent are: (1) a somewhat changed market environment; (2) our increased size; and (3) substantially more competition.”

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“I have always cautioned partners that I considered three years a minimum in determining whether we were "performing".”

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“As I have mentioned before, we cannot make the same sort of money out of permanent ownership of controlled businesses that can be made from buying and reselling such businesses, or from skilled investment in marketable securities. Nevertheless, they offer a pleasant long term form of activity (when conducted in conjunction with high grade, able people) at satisfactory rates of return.”

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“I make no effort to predict the course of general business or the stock market. Period. However, currently there are practices snowballing in the security markets and business world which, while devoid of short term predictive value, bother me as to possible long term consequences.”

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