Editor’s note: This article was first published in October 2013; its internet quote (no. 3), mentioning Wrigley and Coca-Cola holdings, reflects an older period, apparently the dot-com era, and Berkshire’s holdings have changed since.
Since whenever we talk about Warren Buffett we tend to share his investing advice, we thought we’d take this opportunity to remind you that this man is a fountain of wisdom, with some very interesting quotes for business owners and for life in general.
1. On the value of real experience and the importance of taking the plunge
“Can you explain to a fish what it feels like to walk on land? One day on land is worth more than a thousand years of reading and talking about what it feels like to walk on land. One day running a business is worth exactly the same.”
2. Being smart about challenges
“I can’t see myself jumping over seven-foot bars, so I look for one-foot bars that I know I can get over.”
3. On the impact of the internet on business
“The internet is a huge phenomenon. I understand that… I’m not trying to profit from the internet, but I understand the damage it can do to a traditional, established business. Our approach is to profit from the lack of need for change rather than from change itself. That’s why I hold Wrigley, the chewing gum company, and Coca-Cola: those companies aren’t going to be hurt by the arrival of the internet. That’s the kind of business I like, one that can innovate to get better but doesn’t need to change to survive.”
4. When negotiating or signing legal agreements
“You can’t undo your signature on a contract, so read patiently and think through everything you need to before you sign an agreement.”
5. On the kind of people you should surround yourself with
“It’s much better to spend your time with people who are better than you, to surround yourself with people who are smarter than you, and even to choose partners whose behaviour is better than yours. That way you learn, and you can relax on that front.”
(That’s why Buffett chose Charlie Munger.)
6. On your reputation as a business owner
“It can take as long as 20 years to build a good reputation and image, but you can ruin it in five minutes. If you think about that, you’ll probably do things differently.”
7. On what we should leave our children
“I want to leave my children enough that they can do whatever they want, but not so much that they don’t have to do anything.”
8. Pricing the products in your business
“Pricing products is an ongoing process that calls for a mix of maths and market research. Every business owner has to learn to do both well.”
9. On investing
“Investing is like football. If you want to score goals, don’t study the scoreboard, study the pitch.”
10. Business and investing
“Buy companies that are so wonderful, with a product that sells so easily, that even an idiot could run them, because sooner or later some idiot will.”
Further reading
- 18 business lessons you’ll learn sooner or later
- 50 inspiring quotes from successful business leaders for entrepreneurs
- Warren Buffett’s 16 best investing tips
- Warren Buffett’s advice for women in business and their careers
- Lessons from the few investors who beat the market
Featured image: Jggiitter, CC BY 4.0, via Wikimedia Commons.
