The Oracle of Omaha, Warren Buffett turns 82 years young today.
He may be one of the wealthiest people in the world. But he's also known as the billionaire next door. He comes off as humble and sometimes uses self-deprecating humor. Maybe it has something to do with the fact that he's lived in Omaha, Nebraska for most of his life.
Buffett also uses extremely easy-to-understand language when referring to business and investments.
Many of his most thoughtful quotes are found in his annual letters to Berkshire Hathaway shareholders, which are must reads. But some of his gems come from random interviews, speeches, and op-ed pieces.
We compiled a few of the best quotes from the Oracle of Omaha. If we've missed any of your favorites, let us know in the comments.
This is the most important thing
"Rule No. 1: never lose money; rule No. 2: don't forget rule No. 1"
Source: The Tao of Warren Buffett
Be greedy when others are fearful
"Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful."
Source: Letter to shareholders, 2004
Beware when investing turns into speculating
"The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities ¾ that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future ¾ will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands."
Source: Letter to shareholders, 2000
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