Warren Buffett, the Oracle of Omaha, has built his fortune by investing in undervalued companies with strong foundations and long-term growth potential. He is the chairman and CEO of Berkshire Hathaway (NYSE: BRK-B), a multinational conglomerate that owns a diverse range of businesses. Buffett’s investment philosophy emphasizes patience and discipline. Witty and humble, Buffett is also a prolific philanthropist, having pledged most of his wealth to charitable causes through his Giving Pledge initiative. Now in his ninth decade, Buffett’s advice continues to inspire investors around the world. Continue reading to discover 24/7 Wall St.’s 10 Warren Buffett quotes every 60-year-old needs to hear. Which ones speak to you?
Why It Matters
Warren Buffett is one of the most well-respected investors of the last half century with a record that speaks for itself. Buffett’s advice is straightforward and easy to understand for the seasoned trader as well as the novice investor. So, whether you’re looking to improve your game or you’re just getting started, Buffett’s solid advice will push you in the right direction.
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1. Cash Out
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- Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. —Warren Buffett
The Times They Are A-Changin’
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In the not-so-distant past (think mid-20th century), cash equivalents were considered sound investments. After the crash of 1929, investors were understandably leery of the stock market. Government-backed securities seemed a safer alternative. And while cash equivalents are historically less dicey, they offer lower returns compared to other assets. In today’s diversified world, with decidedly more options available to investors, cash equivalents are not as popular as they once were. From lower interest rates to inflation risk, the returns just aren’t that great.
2. It’s All You’ve Got
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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. —Warren Buffett
Don’t Ruin It
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Building a good reputation requires tenacity, integrity, and time. Earning trust doesn’t happen overnight, it happens over time. Demonstrating one’s competence, credibility, and consistency in the long haul is how a good reputation is fashioned. However, it takes very little time to tarnish a stellar rep. At the first misstep, the scrutiny begins, with cancel culture nipping at its heels. Save the risky behavior for the market.
3. Prognosticators Beware
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- Predicting rain doesn’t count – building arks does. —Warren Buffet
Two By Two
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One of the things Warren Buffett is suggesting with this piece of advice is that while it’s dandy to correctly predict market trends, going beyond passive speculation to active investing is the winning move. Digging deeper, he is also encouraging investors to anticipate challenges that they may encounter in the market and to plan ahead to mitigate any unforeseen issues.
4. Better Yourself
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- It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction. —Warren Buffett
Who You Associate With Matters
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Buffett’s words are nothing new. You can’t soar with eagles if you’re hanging out with turkeys, walk with the wise and get wise; associate with fools and get fooled, and show me your friends, and I’ll show you your future all speak to the same. Regardless of how many different ways there are to say if you lie down with dogs, you’ll wake up with fleas, it’s sound wisdom. If you’re not where you wish to be, seek out a mentor, You are the company you keep, after all.
5. A Rose Is a Rose
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- Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars. —Warren Buffett
A Jerk Is a Jerk
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Money can do a lot of things – it opens doors and affords opportunities as it eases financial stress. But the one thing money doesn’t do is change the fundamental character of an individual. As such, Warren Buffett must have been a pretty decent fellow prior to making his fortune. But I’m guessing with very little effort, you can come up with a couple of billionaires who weren’t and aren’t.
6. Who Are Your Heroes?
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- The best thing I did was to choose the right heroes —Warren Buffett
If You Know, You Know
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Warren Buffett also said, Tell me who your heroes are and I’ll tell you who you’ll turn out to be. I do have to wonder, though, if it’s choice or nature that informs who our heroes are. I suppose it could be a combination. The characteristics and qualities of the individuals who become our heroes (or mentors) are those that run deep in us and are the crux of the initial infatuation. If you’re unhappy with your station in life, look around. Are you associating with those who will lift you up or tear you down? Seek out the former and learn from them.
7. And Historians
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- If past history was all there was to the game, the richest people would be librarians. —Warren Buffett
Learn From History, but Don’t Count on It.
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There’s more to investing than history. While trends and patterns are undoubtedly important to understanding the stock market, one must also be aware of market dynamics, risk analysis/management, and diversification and valuation. Unless you’re a seasoned or savvy investor, you’re more likely to be successful in the market if you rely on a professional. Would you attempt to pull your own tooth, or set a broken bone? Yeah.
8. Skinnydipping
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- Only when the tide goes out do you discover who’s been swimming naked. —Warren Buffett
Things Aren’t Always as They Seem
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Don’t measure your success against your neighbor’s. Simply because your neighbors appear to be living the life of Reilly doesn’t mean that they are. Some people are comfortable accruing a lot of debt. But the losses that come with that mindset are staggering. From high-interest rates to lost retirement savings, the strain of living beyond one’s means will eventually take its toll. So, while those in your orbit are living large in the present, their futures might not be that bright.
9. Love Is All There Is
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- Basically, when you get to my age, you’ll really measure your success in life by how many of the people you want to have love you actually do love you. —Warren Buffett
- If you get to my age in life and nobody thinks well of you, I don’t care how big your bank account is, your life is a disaster. —also Warren Buffett
Age Well
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By our sixth decade of life, we’ve come to understand what’s important and what’s not. And Warren Buffett is in his ninth decade, so you know he knows. And what he has discovered is that one’s legacy is love. Whether it’s the love of family, friends, or community, the feelings that extend beyond the material world are the ones that matter most. As such, Buffett has inspired others to give the bulk of their estates to charitable causes through his Giving Pledge initiative. “Give your children enough to do anything, but not enough to do nothing,” is another piece of Buffett’s wisdom.
10. Let Love Lead
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- Why not invest your assets in the companies you really like? As Mae West said, ‘Too much of a good thing can be wonderful. —Warren Buffett
Too Much of a Good Thing Can Be Fattening
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This advice seems good on the surface, but considering the diversity of today’s market one should ascertain that the companies they like are embraced by others as well. We all have our idiosyncratic interests, and some of them may be more investment-worthy than others. If your peculiarly specific niche enthusiasm is not the best long-term investment, consider giving to a Kickstarter (or similar) campaign, and look for a more pedestrian endeavor in which to invest for your future.
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