The stock market is a no-called-strike game. You don’t have to swing at everything–you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, ‘Swing, you bum!
If you get an opportunity to get into a wonderful business that’s being run by an intelligent fanatic and if you don’t load up, it’s a big mistake
To achieve superior results, you have to have an edge in either information or analysis, or both.
If you can’t sleep at night because of your stock market position, then you have gone too far. If this is the case, then sell your position down to the sleeping level.
It makes sense that if you limit your investments to those situations where you are knowledgeable and confident, and only those situations, your success rate will be very high.
Diversification may preserve wealth, but concentration builds wealth
That’s been one of my mantras – focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.
If you got a punch card with 20 punches on it when you left school and every time you made an investment decision you used up one punch, you’d get very rich…because you would think about every single decision you made… and when you knew enough to make a decision you would do it on a big scale… Most of the fortunes have been made in a relatively few securities.
Leaders don’t create more followers, they create more leaders.
If we have a good quarter it’s because of work we did 3, 4, 5 years ago. It’s not because we did a good job this quarter.