"I needed no unusual knowledge or intelligence to conclude that the investment had no downside and potentially had substantial upside."
"You don't need to be an expert in order to achieve satisfactory investment returns. But if you aren't, you must recognize your limitations and follow a course certain to work reasonably well."
"Keep things simple and don't swing for the fences."
"When promised quick profits, respond with a quick 'no.'"
"If you don't feel comfortable making a rough estimate of the asset's future earnings, just forget it and move on. No one has the ability to evaluate every investment possibility."
"Games are won by players who focus on the playing field — not by those whose eyes are glued to the scoreboard."
"Forming macro opinions or listening to the macro or market predictions of others is a waste of time."
"It should be an enormous advantage for investors in stocks to have those wildly fluctuating valuations placed on their holdings — and for some investors, it is."
"Owners of stocks…too often let the capricious and irrational behavior of their fellow owners cause them to behave irrationally as well."
"In the 54 years (Charlie Munger and I) have worked together, we have never forgone an attractive purchase because of the macro or political environment, or the views of other people. In fact, these subjects never come up when we make decisions."
"We recognize the perimeter of our 'circle of competence' and stay well inside of it."
"The goal of the nonprofessional should not be to pick winners…but should rather be to own a cross section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal."
"The antidote to (buying when the market is high) is for an investor to accumulate shares over a long period and never sell when the news is bad and stocks are well off their highs."
"The unsophisticated investor who is realistic about his shortcomings is likely to obtain better long-term results than the knowledgeable professional who is blind to even a single weakness."
"The resulting frictional costs (from advice and trading) can be huge and, for investors in the aggregate, devoid of benefit."
"So ignore the chatter, keep your costs minimal, and invest in stocks as you would a farm."
"Before reading (The Intelligent Investor)…I tried my hand at charting and using market indicia to predict stock moments…I listened to commentators. All of this was fun, but I couldn't shake the feeling that I wasn't getting anywhere."