Quote of the day by Warren Buffett: ‘It does pay to have the right role models. I was very lucky, very early…’

Berkshire Hathaway founder and Chairman, Warren Buffett is known for his wealth of investment advice over the years. Known for his long-term approach to stocks, sticking to fundamentals, and taking calculated but thoughtful risks, his nuggets of wisdom make the rounds on social media from time-to-time.

This includes Buffett’s emphasis on keeping things simple, weighing the pros and cons, and holding on to stocks to see benefits instead of selling at the first spike.

Quote of the day by Warren Buffett

“It does pay to have the right (role) models. I was very lucky, very early in life that I had certain heroes and I’ve continued to develop a few more as I’ve gone along. They’ve been terrific, and they’ve never let me down. It (life) takes you through a lot, and I think it just stands to reason that you copy very much the people that you do look up to, and particularly if you do at an early enough age.”

What does Warren Buffett’s quote mean?

Buffett’s statement, made at an annual general meeting (AGM) for his company Berkshire Hathaway some years back, emphasises the need to learn from the masters.

The ace investor’s advice notes that life is a learning curve, and you also learn from those you surround yourself with, especially at a younger age.

The ‘Oracle of Omaha’ himself has said it was long-time friend and business partner Charlie Munger (seven years his senior), who helped him craft a philosophy of investing in companies for the long term. He credited Munger with shaping Berkshire Hathaway’s investing style and pushing a younger Buffett away from cheap “cigar-butt” stocks toward high-quality businesses at fair prices.

In another interview, speaking to CNBC, Buffett also noted that while some investors may lack the temperament, being “emotionally or psychologically unfit” for the ups and downs of owning stocks, it was not an impossible endeavour.

“I think more of them would be, if you get educated on what you’re really buying, which is part of a business and the longer you hold stocks the less risky they’d be,” he believed.

Who is Warren Buffet — the ‘Oracle of Omaha’?

Warren Buffett, alongside friend and business partner Charlie Munger were the architects who over nearly 60 years transformed Berkshire Hathaway Inc. from a failing textile maker into an empire, worth billions. Decades of compounded returns made the pair billionaires and folk heroes to adoring investors.

Notably, in January this year, Buffett handed over the reins and CEO position to successor Greg Abel. But his “bull run” with Berkshire has been legendary — gaining more than 55,00,000% returns over 60 years (1964-2024), to building the group to $1.2 trillion, and expanding Class A shares to worth $167 billion.

Known as the ‘Oracle of Omaha’ for his uncanny prediction on stocks, Buffett gained fame and investor confidence for handpicking companies (Apple, Bank of America, Coca-Cola, etc.) that exploded and now account for 70% of Berkshire’s $263 billion stock portfolio. He termed this as “one wonderful business can offset the many mediocre decisions that are inevitable”.

Buffett’s net worth is estimated at $152 billion, making him the 10th richest person in the world, according to the Bloomberg Billionaire Index.