Wisdom Of Buffet

Very good consolidation of Buffet's wisdom: 

Humans behave the way humans behave, and they’re going to continue to behave that way in the next 50 years.

The proper temperament is far more important in investing than points of intellect. If you’ve got a reasonable intellect and the right temperament you’d get very rich, and if you’ve got the wrong temperament for it, you’ll get done in at some point. 

Human nature has not changed. People will always behave in a manic-depressive way over time. They will offer great values to you.

he better you understand human nature and are able to distinguish between different types of individuals, the better the investor you are going to be.

The veteran banker of Boston, the late Henry L. Higginson, asked one day by an investor what stocks he ought to buy with some idle funds replied, ‘Buy character.’ He meant that if one bought into any industry backed by men of experience and of high character and intelligence, one would at least be subject only to the usual risks of business, and chances of success would be excellent. On the other hand, no one could have faith in securities of any corporation operated by men of doubtful character.

In management you look for ability, trust & character.

We do not wish to join with managers who lack admirable qualities, no matter how attractive the prospects of their business. We've never succeeded in making a good deal with a bad person.

Be fearful when others are greedy and be greedy when others are fearful.

Patience - an indispensable quality. If one were asked to name the quality which as much as any other is essential to success in speculation, the answer would be ‘patience.'

The biggest thing about making money is time. You don’t have to be particularly smart you just have to be patient.

The stock market is designed to transfer money from the active to the patient.

Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.

Read 500 pages every week ... That's how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.

An ability to detach yourself from the crowd — I don’t know to what extent that’s innate or to what extent that’s learned — but that’s a quality you need.

The financial calculus that Charlie and I employ would never permit our trading a good night’s sleep for a shot at a few extra percentage points of return.

Loss of focus is what worries Charlie and me when we contemplate investing in businesses that in general look outstanding.