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).