A Quote by Charlie Munger
A lot of share-buying, not bargain-seeking, is designed to prop stock prices up. Thirty to 40 years ago, it was very profitable to look at companies that were aggressively buying their own shares. They were motivated simply to buy below what it was worth.
Related Quotes
But if you look at WorldCom, which is the biggest failure to date, they grew dramatically, they were buying companies that were bigger than they were and they were doing it off inflated stock.
I've made money over the years by buying into good companies, run by good people, at attractive prices. And I don't try and make it out of buying into the market at one point and selling at another point.
The most common mistakes were investing in money market funds by people who were so scared at the prospect of managing their own funds that they picked the most conservative option, and their investments did not keep up with inflation. The second major mistake was being too heavily invested in their own company's stock, and buying when it was high and there was a lot of optimism about the company, and then having to sell it low when the company got in trouble.
If stock market experts were so expert, they would be buying stock, not selling advice.
Speculation in oil stock companies was another great evil ... From the first, oil men had to contend with wild fluctuations in the price of oil. ... Such fluctuations were the natural element of the speculator, and he came early, buying in quantities and holding in storage tanks for higher prices. If enough oil was held, or if the production fell off, up went the price, only to be knocked down by the throwing of great quantities of stocks on the market.
Thirty to 40 years ago, most financial decisions were fairly simple.
Fifty years ago or a hundred years ago, generally, most people would buy a house the way you buy a car. When you buy a car, do you think, 'I better buy this year rather than next year because car prices might go up?'
We think of prices as simply the notation of how much we must pay for things. But the price system accomplishes far more than that. Hundreds of millions of people buying and selling, and abstaining from buying and selling, generate a system of signals - prices to producers and consumers about relative scarcities and demand. Through this system, consumers can convey to producers their subjective priorities and entrepreneurs can invest accordingly.
If you ask me what I think people should be getting next season, I’ll tell you what I’d like them to buy—nothing. I’d like people to stop buying and buying and buying.
When buying shares, ask yourself, would you buy the whole company?
Shorts wager on price declines by selling shares that they have borrowed in the hope of buying them back at far lower prices.
Now take a look at the way the Drug War is conducted over the past 40 years. It goes back farther, but start from 40 years ago: There's very little spent on prevention and treatment. There's a lot on policing, a ton of stuff on border control and a lot on out-of-country operations. And the effect on the availability of drugs is almost undetectable; drug prices don't change on measures of availability. So there are two possibilities: Either those conducting the Drug War are lunatics, or they have another purpose.
First of all I trust my own instinct, experience that I gained over years and feeling when the moment is right for buying shares. That is what one calls intuition.
When Berkshire buys common stock, we approach the transaction as if we were buying into a private business.
You’re not buying news when you buy The New York Times. You’re buying judgment.
When I'm bearish and I sell a stock, each sale must be at a lower level than the previous sale. When I am buying, the reverse is true. I must buy on a rising scale. I don't buy long stocks on a scale down, I buy on a scale up.
Related Authors
Bill Gates Quotes
American
Businessman
Dieter F. Uchtdorf Quotes
German
Businessman
Elon Musk Quotes
South African
Businessman
Henry Ford Quotes
American
Businessman
Jim Rohn Quotes
American
Businessman
Joseph B. Wirthlin Quotes
American
Businessman
Mark Cuban Quotes
American
Businessman
Mark Zuckerberg Quotes
American
Businessman
Peter Drucker Quotes
American
Businessman
Richard Branson Quotes
British
Businessman
Russell Simmons Quotes
American
Businessman
Sam Altman Quotes
American
Businessman
Steve Jobs Quotes
American
Businessman
Tom Peters Quotes
American
Businessman
Walt Disney Quotes
American
Businessman
Warren Buffett Quotes
American
Businessman