This Is One Of Warren Buffett’s Most Important Sayings

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”–Warren Buffett

Coca-Cola (NYSE: KO) was launched in 1886. Berkshire Hathaway (NYSE: BRK.B) was a significant company before Warren Buffett took over in 1965. Kroger (NYSE: KR) was founded in 1883. American Express (NYSE: AXP) was started in 1850. All are part of Buffett’s holdings in the first quarter of 2025. He has held some of these for most of this century. That is part of his investment rules and philosophies.

Often among the best investments are companies that have been industry giants and successful since before Buffett was born in 1930. He and his staff can examine earnings, business models, and both good and bad decisions. He can look at CEOs, both present and past. He can sift through balance sheets. He has observed the strategies of his competitors. He has seen how companies navigate business cycles, both good and bad.

To be clear, Buffett likes to invest in companies that are that are relatively new and have been the winners in the new world of tech. This includes, among others, Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL). As he’s watched Apple tumble, he’s sold off some of his holdings.

Buffett’s comment is based on a statement from the mid-1800s, and it may be even older than that. “Blessed is he who plants trees under whose shade he will never sit.” It refers to social, ethical, and philosophical behavior but is apt nevertheless.

In speech after speech and gathering after gathering. Buffett makes it clear that people who trade in and out of stocks are fundamentally the same as day traders. They risk fast moves in stocks that may have nothing to do with the fundamentals of the companies they trade. If Buffett has ever done that, he hasn’t let on.