10 Warren Buffett Inspirational Quotes To Live By If You Want To Start Investing In 2023?

Warren Buffett. This is a name that is and will always remain etched into the money of each and every person who is or wishes to be an investor.

Almost every person in the world who wishes to grow their wealth through investing has looked up to the legendary investor for decades, right?

And quite naturally, many around the world who look up to him try to understand his investment style and even copy it to gain similar returns and amass wealth.

But what many people fail to realise is that it's not about copying his decisions or investment style, but about understanding the basics of investing the way 92 year-old Warren Buffett does.

You may wonder how to accomplish this. Well, in the past seven decades or so, the legendary investor has told so much about investing through his quotes that his quotes are no less than a learning experience in themselves.

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Also Read: A Look Back At The Highlights From Warren Buffett's Life On The Billionaire's 92nd Birthday

So, whether you are an existing investor or someone looking to begin investing in the new year 2023, here are 10 of the most inspirational quotes from ace investor Warren Buffett to help you better understand investing.

1. "Market fluctuations are your friend, not enemy"

One of the most popular quotes by Warren Buffett, which is absolutely necessary to be understood by every investor, is "Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it."

Warren Buffett knows that the market is going to be volatile, as expected, and that fluctuations represent opportunities if you take the emotion out of it. So treat fluctuations and market downturns as an opportunity to invest more, as stocks are likely to be cheaper, rather than panicking and selling stocks during market fluctuations. Stop attaching a negative sentiment to market downturns or fluctuations; only then will you be able to reap their benefits!

2. "Price is what you pay. Value is what you get."

Another brilliant quote by the ace investor, is this: Warren Buffett carefully examines the stocks he chooses to buy and then makes his choices based on the company¡¯s fundamentals. Usually, when he finds a company that he thinks is trading below its intrinsic value, he buys it, even though others may stay away from that stock thinking that the price is high.

Indeed, Buffett believes that if the business' fundamentals are strong, he will be able to get good value out of the investment he made by paying the price for the stock.

3: "Never invest in a business you cannot understand."

As clear as it sounds, this quote tells us that investors should know where they are putting their hard-earned money. Never put your money into a business that you do not understand. Take time to understand the company, analyse their finances, study the management team, and also understand the company¡¯s unique advantages, if any, and whether they have what it takes to grow.

If you are still unable to understand or don't believe in the company's growth potential, then avoid investing your money in it.

4. ¡°Only when the tide goes out do you discover who¡¯s been swimming naked.¡±

Another quote by Buffett that every investor should understand is that most companies will make money when the market is good and soaring high. But it¡¯s only when the market turns down that you can see which companies have poor fundamentals.

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Also Read: Mohnish Pabrai: The 'Copycat Crorepati' Who Made Billions By Following Warren Buffett¡¯s Strategy

5. "Risk comes from not knowing what you are doing"

Warren Buffett spends some hours every day reading, and he has done this for most of his life. The more you read, the better positioned you are to educate yourself about something.

Likewise, when it comes to investments, Warren Buffett says risk comes from not knowing what you¡¯re doing. So, if you are not clear about where and why you are investing, then that is a huge risk in itself.

6. "The investor of today does not profit from yesterday¡¯s growth"

Past records are not the mirror of the future. This is what many investors fail to understand. Yes, looking at the historical performance of a stock or mutual fund can give you a fair idea of how it has dealt with various market ups and downs. But that in no way guarantees the future.

So, looking at the previous returns before investing will not help you grow. You need to focus on the future potential and trends, as that is what can reap benefits. Pick up sectors that have the potential to perform in the future, especially in the long run.

7: "It¡¯s far better to buy a wonderful company at a fair price than a fair company at a wonderful price"

Warren Buffett religiously follows the principles of value investing. This was reportedly taught to him by his mentor, Benjamin Graham.

Buffett was taught to buy stocks that were trading way below their intrinsic value. So, when the market corrects, the price will jump up. On the other hand, the "wonderful business" will continue to deliver more profits and growth through compounding over the years.

So, good companies continue to increase in value over time, as opposed to marginal companies, which may be available at a bargain price but won¡¯t appreciate over time or give you good returns.

8.¡±Only buy something that you¡¯d be happy to hold if the market shut down for 10 years.¡±

As the quote mentions, if you understand and believe in a company's future potential, especially in the long run, only then should you go ahead and invest in it. If you can't see yourself holding that company's stock for another 10 years, for instance, if the stock market shuts down for 10 years and you can't sell that stock, then don't invest in it. Only if you are willing to hold a stock for another 10 years or so should you put your money into it.

9.¡°Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.¡±

One of Buffett¡¯s most popular quotes is this one, which sums up his investing philosophy. Buffett believes the most important quality for an investor is temperament, not intellect.

A successful investor doesn't focus on being with or against the crowd. Buffett too stays focused on his goals, and so should all investors, irrespective of stock market swings. Don't end up panicking just because most people are, because that way you will only end up incurring losses.

10: "Someone is sitting in the shade of a tree today because someone planted a tree a long time ago."

This quote by Buffett tells us about the importance of patience and remaining invested for the long term.

Only identifying and investing in the right investments is not enough for wealth creation. You must also allow time for your investment to mature before you can reap the benefits. The maximum benefits are through long-term investment, so be patient and let the money grow! Only then will you be able to one day sit peacefully under the tree of wealth creation, which grew because you remained invested for the long term.

Also Read; Inspired By 91YO Warren Buffett, 79YO Indian Techie Ashok Soota Launches His Third Startup

Becoming Warren Buffett: The Movie

An unmissable Hollywood movie for every entrepreneur around the world is Warren Buffett¡¯s documentary "Becoming Warren Buffett."

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The film is about Warren Buffett and his life, wherein he starts out as an ambitious, numbers-obsessed boy from Nebraska and ends up becoming one of the richest and most respected men and investors in the world.

The Warren Buffett documentary lets you dive into the secrets behind his success, and showcases how this great investor, who is known for his business and investing acumen, has remained down-to-earth despite being so famous and super rich!

Also Read: How A Lost iPhone Led To Warren Buffett Investing Billions In Apple

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