Quotes

The best kind of business to be in is something where you sell something that costs a penny and sells for a dollar and is habit forming.

I'm in the insurance business, and anything that can happen will happen.

The stock doesn't know you own it.

If you really know businesses, you probably shouldn’t own more than six of them. If you can identify six wonderful businesses, that is all the diversification you need and you’re going to make a lot of money.

What you really want to do in investments is figure out what’s important and knowable. If it's unimportant or unknowable, you forget about it.

The disadvantage of being in any kind of a market type environment - Wall Street would be the extreme - is that you get over-stimulated. You think you have to do something every day.

Wall Street makes its money on activity. You make your money on inactivity.

If you are not a professional investor, if your goal is not to manage money in such a way so you get a significantly better return than the world, then I believe in extreme diversification.

Many years ago, an older partner taught me to distinguish between outcomes that are unlikely and outcomes that are catastrophic. The latter are to be avoided even if the odds on them are tiny.

Financial markets are a kind of time machine that allows selling investors to compress the future into the present and buying investors to stretch the present into the future.

The whole institutional structure of the marketplace rests on the assumption that the other side of the trade will always be there; without that assumption, even the gutsiest of market-makers would refuse to stay in business.

In the end, risk management is about consequences.