“Price is what you pay; value is what you get”- 8 timeless Warren Buffett quotes that every investor should know

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has built a fortune that has outperformed the stock market over decades. Known for his wisdom and straightforwardness, Buffett’s insights on investing resonate with both beginners and seasoned professionals. His strategy has provided shareholders with nearly 20% annualised returns from 1965 to 2023, far surpassing the S&P 500’s 10.2% return.

Buffett has an unmatched ability to distill complex investment principles into simple, memorable quotes that offer invaluable guidance. Here are eight of his best quotes that every investor should consider:

• “Be fearful when others are greedy, and be greedy when others are fearful.”

This famous rule underscores the importance of emotional control in investing. Markets are driven by human emotions—optimism and pessimism. Recognising these emotions and understanding market cycles can help investors make better decisions when the market swings to extremes.

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

While Buffett started by hunting for cheap stocks, he eventually evolved his strategy. Rather than focusing solely on price, he now prioritises businesses with strong fundamentals that can compound growth over time.

• “Price is what you pay; value is what you get.”

As a champion of value investing, Buffett emphasises that price alone doesn’t define an investment’s worth. True value comes from the business’s potential to generate earnings and cash flow, not just the price tag.

• “Big opportunities come infrequently. When it’s raining gold, reach for a bucket, not a thimble.”

Buffett advises investors to seize major opportunities when they arise. Rather than spreading investments thinly, concentrate on the best prospects. He famously made a big bet on Apple, which became a cornerstone of Berkshire Hathaway’s portfolio.

• “At the business school, I tell them that they would all be better off if when they got out of school somebody gave them a card with 20 punches on it and every time they made an investment decision, they used up a punch.”

Buffett encourages investors to be selective and deliberate with their decisions. Limiting yourself to 20 investments in a lifetime would force you to focus on the highest quality opportunities, leading to better long-term results.

• “You don’t get paid for activity, you only get paid for being right.”

In the investment world, action doesn’t always equal success. Buffett warns against excessive trading and unnecessary activity. It’s about making the right investments, not just being active for the sake of it.

• “The big question about how people behave is whether they’ve got an Inner Scorecard or an Outer Scorecard. It helps if you can be satisfied with an Inner Scorecard.”

This thought-provoking quote highlights the importance of focusing on your own values and goals, rather than being driven by the opinions or expectations of others. For investors, this mindset helps avoid the pressure of external comparisons and distractions.

• “Only buy something that you’d be perfectly happy to hold if the market shut down for ten years.”

Buffett has long advocated for long-term investing. This quote reminds investors to think of stocks as ownership in real businesses. Instead of obsessing over daily price fluctuations, consider whether you’d still want to own the company if the market were to close for years.

These quotes reflect Buffett’s core investment philosophy—focus on value, think long-term, and manage emotions wisely. His words remain timeless, offering guidance that is as relevant today as it was when he first shared them.