Good advice from a good source can inspire you.
Warren Buffett has much experience and knowledge to inspire business owners. — guvendemir/Getty Images

Warren Buffett is a successful investor and CEO of the company Berkshire Hathaway Inc. Over his career as an investor, Buffett has amassed a net worth of over $60 billion.

He is also a wealth of knowledge when it comes to investing, personal finance and life in general. Listed below are 10 of Warren Buffett’s most profound quotes.

“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.”

Warren Buffett is known for being a long-term investor in companies like American Express and Wells Fargo. He believes that long-term investing is the best way to create real wealth. Don’t invest in a stock if you’re not prepared to stick around for a minimum of five years.

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

With this quote, Buffett was speaking to long-term investing, but it applies to any venture worth pursuing. Instead of looking for easy gains or quick fixes, be prepared to put in the time it takes. Good things take time to plant, grow and flourish.

“You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of ideas come along, and I’ve had long dry spells. If I get an idea next week, I’ll do something. If not, I won’t do a damn thing.”

You don’t have to jump on every mediocre opportunity that comes your way. Sometimes it’s best to let most things pass you by, and then take advantage of the really big opportunities when they come around.

"I insist on a lot of time being spent, almost every day, to just sit and think. That is very uncommon in American business."

Buffett is a huge advocate of taking the time to learn and improve yourself. Give yourself time to sit, think and reflect on your decisions. Giving yourself time to think will help you avoid falling into a pattern of always reacting to what’s going on around you.

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

Warren Buffett

"You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right."

Don’t use other people’s opinions as a metric for what you should or shouldn’t do. Other people’s opinions shouldn’t be a factor in your decision-making process. Evaluate your options and make decisions based on data and solid reasoning.

“It's only when the tide goes out that you discover who's been swimming naked.”

When the economy is going well, and life is relatively easy, everyone seems to come out a winner. But when things get challenging, that’s when a person’s true character is revealed.

“There is nothing wrong with a ‘know nothing’ investor who realizes it. The problem is when you are a ‘know nothing’ investor, but you think you know something.”

Buffett advises that all investors know their “circle of competence.” They should know what they’re good at and stick with those things. Don’t feel like you have to branch out for the sake of branching out.

"It's better to hang out with people better than you. Pick out associates whose behavior is better than yours, and you'll drift in that direction."

You’ll become like the people you spend time with, so make sure you choose wisely. Spend time with people who have the kind of qualities you want to cultivate in yourself.

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

It’s not always worth it to look for the deepest discount before investing. Sometimes, it’s a better choice to spend more money and invest in the right company. Finding a company with substance is always more important than finding the lowest deal.

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.”

Your reputation is everything in business and life, and it takes a long time to build a good reputation. Think before you act, and don’t do anything that could jeopardize everything you’ve created.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

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Published January 27, 2020