What I Learned from Warren Buffett (2024)

FAQs

What lessons can you learn from Warren Buffett? ›

Lesson 1: The Power of Patience and Long-Term Thinking

He believes in the power of compounding and the benefits of long-term thinking. One of the key lessons I've learned from Buffett is that success, whether in investing or other aspects of life, often requires a patient and long-term approach.

“It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” While some value investors focus on buying only the cheapest companies, Buffett suggests a better course of action is to buy “wonderful” companies – those with better economics and competitive positions.

Warren's gift is being able to think ahead of the crowd, and it requires more than taking Warren's aphorisms to heart to accomplish that—although Warren is full of aphorisms well worth taking to heart. For example, Warren likes to say that there are no called strikes in investing.

With his investing prowess, principles, and philosophies, Buffett has built an empire that has inspired and motivated people all over the world. But what has made him truly remarkable is not just his vast wealth but also his remarkable humility and ability to connect with people across all walks of life.

I've learned many things from Warren over the last 25 years, but maybe the most important thing is what friendship is all about. It's about being the kind of friend you wish you had yourself.”

“It's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.” One way to misinterpret Warren Buffett's value investing is to assume that the only criteria for buying a stock is that it should be undervalued.

I read annual reports, and I read a lot of other things, too. So, I've always enjoyed reading. I love reading biographies, for example.” – Warren Buffett. So Buffett says he reads around 5-6 hours daily, including newspapers, magazines, 10Ks, annual reports, and biographies.

Warren Buffett typically does not give money to individuals, although he frequently donates to charities. However, he has in the past forwarded individual requests for money to his sister, Ms. Doris Buffett, who operates an organization called the Sunshine Lady Foundation.

Through his philanthropic efforts, Buffett has funded initiatives in education, healthcare, poverty alleviation, and other critical areas across the globe, making a significant impact on the lives of millions.

Why do people like Warren Buffett? ›

Warren Buffett is regarded by most as being one of the greatest investors of our time. His buy-and-hold style has allowed him to purchase hundreds of companies that he felt were fundamentally undervalued.

Warren Buffett was a smart student, but not necessarily in the traditional sense. While he excelled in certain subjects, such as math and economics, he was not a straight-A student overall.

Buffett created the grantmaker in 1964 to manage the family's charitable giving, and it remains a family affair. Two of his three children serve on its board, and it is led by his former son-in-law. The foundation primarily backs women's reproductive health.

“What we learn from history is that people don't learn from history.” – Warren Buffet. “What we learn from history is that people don't learn from history.” Market crashes and economic downturns are a part of life. Market calamity can occur seemingly out of nowhere.

“The most important investment you can make is in yourself.”

Perhaps one of his finest quotes, Warren Buffett recognises the value of research, experience and common sense.

“Some people are going to get a lot out of advanced education and some people are going to get very little,” he said. “I don't even think it's important that every person go to college at all.” “We have all kinds of jobs at $70,000 or $80,000 a year (for which) college training is not of use,” Buffett said.