Guruspeak - Wealth of wisdom

Updated: Sep 30 2007, 08:17am hrs
Warren Buffet, arguably one of the richest men on the planet, has grown his investments steadily over the years. His unique 'value' investing style is extremely pragmatic and based on earthy wisdom. And this wisdom is not just about investing in equities but also about managing wealth and even about life itself. Known for his incisive comments, we present some golden nuggets.

* Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway

* In the short run, the market is a voting machine but in the long run it is a weighing machine

* It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price

* I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years

* The critical investment factor is determining the intrinsic value of a business and paying a fair or bargain price

* Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing.

* The investor of today does not profit from yesterday's growth.

* Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars.

* Turnarounds seldom turn

* It's only when the tide goes out that you learn who's been swimming naked.

* If past history was all there was to the game, the richest people would be librarians.

* I do not like debt and do not like to invest in companies that have too much debt, particularly long-term debt. With long-term debt, increases in interest rates can drastically affect company profits and make future cash flows less predictable.

* I buy expensive suits. They just look cheap on me.