Robert L. Bloch - Warren Buffett Book of Investing Wisdom: 350 Quotes from the Worlds Most Successful Investor

Copyright 2015, 2021 by Robert L. Bloch

Previously published under the title My Warren Buffett Bible

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Library of Congress Cataloging-in-Publication Data is available on file.

Print ISBN: 978-1-5107-5399-0

Ebook ISBN: 978-1-5107-5976-3

Cover design by Kai Texel

Printed in the United States of America

Someones sitting in the shade today because
someone planted a tree a long time ago.
Warren Buffett

Contents

PREFACE

W arren Buffett is best known for being one of the worlds most successful investors. Which is why its not surprising that his investment strategy has reached mythical proportions. He is, of course, one of the wealthiest people in the world, with a current net worth of almost $90 billion.

Buffett follows several important tenets and an investment philosophy that is widely followed around the globe. So what are the secrets to his success? In this volume I try to pass along, in Buffetts own words, his very powerful and simple advice. Beyond the financial benefits, included are many wonderful quotes of life principles that will enhance your daily living.

In this updated and expanded version, I try to capture the many facets of this incredible man who is nothing less than a national treasure. I hope that his words of wisdom are preserved in perpetuity as a reminder of his genius.

O ver a decade ago, I had the good fortune to meet Warren Buffett when he became a major shareholder in H&R Block, the tax preparation company my father, Henry Bloch, co-founded in 1955.

Warren and my father have much in common. Both entrepreneurs were born before World War II in the Mid-West and came from middle class families. They are extremely down to earth and have loads of good common sense and honesty. Without a doubt, both enjoy the process more than the proceeds of business and investing.

Buffetts investment principles are simple, old, and few. Much like my father, most of Warrens success is due to his personality, character, and willingness to learn from and teach others. Of his many outstanding qualities, the role as teacher is the one for which, Warren states, he would most like to be remembered.

Recently I have made Warren my teacher and mentor by reading and re-reading his quotes until they have become a part of me. As the Oracle of Omaha said, Its better to hang out with people better than you. Pick out associates whose behavior is better than yours and youll drift in that direction. As investors, we should all strive to drift toward Warrens direction.

There have been dozens of books published that have attempted to capture the philosophy and personality of Warren Buffett; but words cannot really describe this amazing man... except maybe his own words. Buffett does Buffett better than anyone. Since Warren has never written an autobiography, the quotes in this book are the most direct and unfiltered source we have.

After experiencing several bear markets over his lifetime, Warren has learned to stay the course and stick to his investing principles, when other investors were selling or rethinking their strategies. Therefore a proven discipline is an essential element in becoming a successful investor. This book has helped me become a more disciplined investor.

I am confident it will not only help you become more disciplined but also a more RATIONAL, OPTIMISTIC, and LONG-TERM investor. The ultimate act of generosity is Warren Buffett sharing his genius with the individual investor!

Robert L. Bloch

Note: I am honored that Warren Buffett has given me written permission to use his inspiring words in this volume.

Opportunities abound in America.

In the business world, the rearview mirror is always clearer than the windshield.

American business will do just fine over time. And stocks will do well just as certainly, since their fate is tied to business performance. Periodic setbacks will occur, yes, but investors and managers are in a game heavily stacked in their favor. (The Dow Jones Industrials advanced from 66 to 11,497 in the twentieth century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression, and many recessions. And dont forget that shareholders received substantial dividends throughout the century as well.)

Risk comes from not knowing what you are doing.

Since the basic game is so favorable, Charlie and I believe its a terrible mistake to try to dance in and out of it based upon the turn of tarot cards, the predictions of experts, or the ebb and flow of business activity. The risks of being out of the game are huge compared to the risks of being in it.

Charlie Munger is the vice-chairman of Berkshire Hathaway.

Our experience with newly minted MBAs has not been that great... Its difficult to teach a new dog old tricks.

Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.

You will move in the direction of the people that you associate with. So its important to associate with people that are better than yourself. The friends you have will form you as you go through life. Make some good friends, keep them for the rest of your life, but have them be people that you admire as well as like.

To swim a fast 100 meters, its better to swim with the tide than to work on your stroke.

Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway .

I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.

Buy companies with strong histories of profitability and with a dominant business franchise.

Rule No. 1: Never lose money.

Rule No. 2: Dont forget No. 1.

When I buy a stock, I think of it in terms of buying a whole company, just as if I were buying the store down the street. If I were buying the store, Id want to know all about it. I mean, look at what Walt Disney was worth on the stock market in the first half of 1966. The price per share was $53, and this didnt look especially cheap; but on that basis, you could buy the whole company for $80 million when Snow White, Swiss Family Robinson, and some other cartoons, which had been written off the books, were worth that much; and then you had Disneyland and Walt Disney, a genius, as a partner.