6 . “ Price is what you pay ; value is what you get . Whether we ' re talking about socks or stocks , I like buying quality merchandise when it is marked down .” ( From a letter to shareholders in 2008 )
Shareholders at Berkshire Hathaway eagerly await Warren Buffett ' s yearly letters and admire them for their great storytelling using simple and clear words .
7 . “ If you understood a business perfectly and the future of the business , you would need very little in the way of a margin of safety .” ( From a Berkshire Hathaway annual meeting in 1997 )
8 . “ Never count on making a good sale . Have the purchase price be so attractive that even a mediocre sale gives good results .” ( From " Buffett : The Making of an American Capitalist ", 1995 )
This signifies that a business that is quite unstable will also require a greater margin of safety in case you decide to invest in that business . For instance , if you drive a truck over a bridge that can only carry 5 tons and your truck weighs 4.8 tons and the bridge is less than a meter above a stream , you might feel much safer than if it were over a 20-meter ravine .
9 . “ We ' ve long felt that the only value of stock forecasters is to make fortune tellers look good . Even now , Charlie [ Munger ] and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place , away from children and also from grown-ups who behave in the market like children .” ( From a letter to shareholders in 1992 )
Charlie Munger , also a native of Omaha , Nebraska , serves as vice-chairman of Berkshire Hathaway and has been Mr . Buffet ‟ s business partner for many years . He also serves as Costco ‟ s director . In spite of their close personal and business relationships , they differ in political preferences , Munger being a recognized Republican while Buffett has recently supported Democrats .
10 . “ We don ' t get paid for activity , just for being right . As to how long we ' ll wait , we ' ll wait indefinitely .” ( From a Berkshire Hathaway annual meeting in 1998 ).