Warren Buffett’s remarks have garnered attention in the business and financial world. According to the “Forbes” magazine’s “Global Real-Time Billionaires List” released on April 14, 2025, Warren Buffett, the CEO of Berkshire Hathaway, has amassed a personal fortune of $165 billion.
Five famous quotes from Buffett selected by the Gobankingrate website, derived from his annual letters to shareholders, shareholder meeting videos, news interviews, and his own writings, may help improve your financial future.
Financial professionals understand that flaunting wealth is not true wealth, and increasing living costs does not elevate quality of life – this is Warren Buffett’s mantra.
Buffett mentioned that he doesn’t advocate extreme frugality, but firmly believes that spending more than one earns is madness.
While a Rolls Royce may exude wealth, it is not more efficient than the subway for commuting, and as a depreciating asset, it diminishes wealth. It is essential to understand the value derived from feeling wealthy compared to actual wealth.
“View market fluctuations as a friend rather than an enemy, profit from folly rather than participate in it,” Buffett said.
Market fluctuations provide excellent investment opportunities, but Buffett advises going against the tide. As a value investor, Buffett’s stock purchases are based on company strength rather than emotions driving market volatility.
In a letter to Berkshire Hathaway shareholders in 2013, he illustrated this point with an analogy to real estate.
“If there’s a manic-depressive on one side of me yelling out a price every day, either to buy my farm or to sell his farm to me – and these prices vary greatly based on his mood swings – how could I not benefit from his erratic behavior?”
“If one day, his offer is absurdly low and I have some spare cash, I’ll buy his farm. If his offer is sky-high, I’ll either sell to him or continue farming.”
“Today, holding cash-like assets may feel comfortable, but it shouldn’t be,” Buffett said.
This statement remains applicable today.
When the market is uncertain, cash seems safe, but inflation will devalue it. Historically, the long-term value of stocks is conversely stable. Sitting on the sidelines until prices rise and investing feels safer will result in a double hit: rising stock prices and diminishing purchasing power.
“I never try to make money in the stock market,” Buffett said.
Buffett often mentions he does not know how stock prices will fluctuate in the short term. He doesn’t worry about it as the market’s monthly or annual trends are irrelevant to a company’s earnings capability five or ten years from now.
Buffett seeks companies that can thrive even if the market halts for five years.
“Today’s investors will not profit from yesterday’s growth,” Buffett said.
Investors are familiar with the disclaimer in prospectuses warning that past performance does not guarantee future results. Buffett keeps this in mind.
He states that he only invests in companies when he believes he can reasonably predict their future direction. This investing method may not be thrilling, as predictable companies often experience slow and steady growth, albeit with occasional breakthroughs.
So, what does he look for? A top-tier enterprise with a strong competitive advantage and an understanding of economic conditions.
The final point is crucial. Buffett emphasizes that the limitation of knowledge can serve as a safety boundary.
While staying within this boundary may narrow the options, it is not necessary to hold a large number of different stocks to earn substantial money over time. In fact, Berkshire Hathaway’s investment portfolio is valued over $260 billion while only holding shares in 44 companies.
Buffett’s long-term partner, the late Charlie Munger, emphasizes the importance of continuous learning and practice for successful investing. Persevere through setbacks, and success is certain.
(Note: This article is for general information purposes only and does not constitute any recommendations. The Epoch Times does not provide investment, tax, legal, financial planning, real estate planning, or other personal finance advice. For specific investment matters, please consult your financial advisor. The Epoch Times does not bear any investment responsibility.)