The Oracle of Omaha, Warren Buffett, who is undoubtedly the biggest investor in the world, keeps dropping pearls of wisdom in his annual letters and rare interviews. His wisdom usually shared through quotes in his annual Berkshire Hathaway letters, feels like parental hand holding for investors everywhere. For young Indians navigating the unpredictability that is a part of the markets is a tough job. These quotes throw light on a tested path to success. Let’s try and learn from 5 of Buffetts top quotes.
1. “Rule No. 1: Never Lose Money. Rule No. 2: Never Forget Rule No. 1.”
This is one of the most widely known and followed quotes by Warren Buffet, that he shared in his 1983 annual letters to Berkshire Hathaway investors. Here he emphasized the importance of protecting your capital. When one loses money, it sets them back, making it harder to recover than to grow steadily. Think about it… If you lose 50% on a stock, you need a 100% gain on its now down price just to break even. This quote is about securing your investments to ensure there is no monetary losses, before chasing the big gains.
In India, this means avoiding risky bets. For example, the 1999 internet stocks craze where many investors jumped in blind following the herd, lured by stories of 10x to 100x gains, only to lose big when the market crashed in 2000. This quote is a warning against such moves. The whole point is when investing in stocks work hard to avoid losses. And if you get that right, you will be closer to investing success than you have ever been.
2. “It’s Far Better to Buy a Wonderful Company at a Fair Price Than a Fair Company at a Wonderful Price.”
This one is from Buffets 1989 annual letter, which highlights his big shift from buying cheap mediocre businesses to investing in high-quality ones at reasonable or ‘Fair’ prices. This quote says that a “wonderful” company might have a competitive edge—a moat—like strong branding or market leadership, ensuring long-term growth. A fair price in simple words means not overpaying, even for a what could be a superb business. Remember, his other quote? Price is what you pay, value is what you get.
Here is an example for Indian investors to learn this better.
A lesson on the importance of prioritizing quality over bargains.
Take Asian Paints, India’s top paint company with a 50%+ market share as an example. A huge brand with a vast distribution network makes it a company with a solid moat. These are strengths that are very difficult to replicate for anyone. Now, marry this wonderful company, with a fair price, and you have a winner. What’s the fair price? Well, Buffett does not really spell out exactly how to go decide what’s fair, but he does that indirectly by saying one should buy stocks, when others are not i.e. when fear dominates the market.
This takes us to the next quote…
3. “Be Fearful When Others Are Greedy, and Greedy When Others Are Fearful.”
This is a classic one! The 2004 annual letter had this quote by Buffett teaching the art of contrarian investing. When markets are ecstatic, prices get inflated, making the risks rise. However, when panic sets in, stocks can be undervalued, offering some great deals. This one talks about keeping emotions at bay. And then act against the crowd.
In India, we’ve seen both sides. During the 2021 IPO boom, stocks like Zomato soared—listing at Rs 150 from an IPO price of Rs 76—driven by greed. But by 2022, it fell to Rs 50 as reality hit: high losses, no profits.
Buffett would’ve been fearful then in the 2021 boom, and greedy in 2022. But would he buy the stock? Well that comes back to the previous quote – does the company have a moat.
Fast forward to the 2020 lockdown crash—the Nifty 50 dropped 40%, and blue chip stocks like Mahindra and Mahindra (M & M) hit lows. That was the time to be greedy, especially the company was undergoing a huge transition too. M & M went on to multiply 10x on the bourses, rewarding those who bought during fear. Check a stock’s fundamentals to decide what you should own. And check the market mood to perhaps get a sense of when you should get into it.
4. “The Stock Market Is a Device for Transferring Money from the Impatient to the Patient.”
Buffett said this in his 1987 annual letter, stressing the value of patience. It takes years of holding in good companies, and this requires patience. Impatient traders will often buy stocks at high price and then sell at a lower price in panic when the markets act up. And therefore, they tend to lose money to patient investors who wait the volatility out.
Indian investors must learn from this. Take the frenzy around options trading for example. As per NSE data, 90% of traders lose money! This just shows impatience at its worst. Compare that with a patient approach. Rs 10,000 invested in Reliance Industries in 2005 grew to over Rs 100,000 by 2025, a 12% annual return, despite market downs. Patience paid off. Don’t jump in and out of stocks. Find a steady stock like Titan, a jewellery leader with 15% annual growth, and hold it through ups and downs. Time in the market beats timing the market.
5. “If You Don’t Find a Way to Make Money While You Sleep, You Will Work Until You Die.”
In one of his rare interviews in 2017, Warren Buffet dropped this one that highlights the power of passive income through investments. In simple words, he means you should put your money to work—stocks, dividends, or mutual funds. Your money must work for you and grow even when you sleep. With no effort form you! If that is not happening, you’ll probably be stuck trading your own time for money forever.
In India, this is a wake-up call for millennials. Instead of keeping cash in a 6% fixed deposit, which barely beats inflation, invest in dividend-paying stocks or SIPs. Look at ITC—it pays a 3% dividend yield and has grown 10% annually over a decade. A Rs 100,000 investment in ITC gives you Rs 3,000 yearly dividends, growing over time, while the stock potentially appreciates over the long term. Or start an SIP in a Nifty 50 fund—Rs 5,000 monthly at 12% annual returns could grow to Rs 30,00,000 lakh in 20 years. That’s money working while you sleep, securing your future the Buffett way.
Wisdom That Transcends Borders
Warren Buffetts quotes have a global audience and appeal. They are not just for Wall Street—in fact they are for Dalal Street too. They speak about protecting your money, buying quality stocks at a fair price, not following the crown however tempting it might be, staying patient, and building passive income… These are universal principles. In India’s stock market, where IPOs blind many and crashes burn many, these quotes act as lessons that keep you grounded. Got doubts? Let Buffett’s wisdom guide you.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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