Famous Quotes About Money and Investing From Warren Buffett

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.” – Warren Buffett

What does that even mean? It means that you should be investing in companies and not their stocks. We often forget that buying shares of common stock in a company is actually owning a small piece of that company. Investors should concentrate in owning shares of a company that they know about, would give money to for a percentage of the profits if it were their brother’s company, and should follow what that company does religiously. Investing in stock is about buying low and selling the shares when they reach a higher price, but if you approach finding the company based on its business plan and profits, then the company’s share price when take care of itself.

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” – Warren Buffett

You should by what investing television host and author, Jim Cramer, calls the best in breed. You should buy shares in a companies that are the best or very near the top in their industry. While there is a time and place to purchase the up and coming companies with a small percentage of your investment portfolio, you will have a safer and more expected return if you choose the best companies in mature industries.

Do you have your own favorite Warren Buffett quote? Tell it to us by adding it to the comment section below.

Note – This is the first in a series of posts on Wednesdays featuring quotes about investing from famous investors and people in finance. Check out the entire series of Famous Investors’ Quotes.