A margin of safety refers to characteristics of an investment that help to protect investors from losing money.
One of the best Buffett quotes new investors can absorb is, "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.
When stock markets crash, it's our nature to get out before prices drop any further. Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.
Buffett buys stocks because he wants to own those businesses for the long term. He thinks that best investments most people can make is a set-it-and-forget-it investment
Warren Buffett is widely considered to be the world's greatest value investor. Value investing prioritizes paying low prices for investments relative to their intrinsic values.
Buffet views knowledge as something that compounds over time, and he believes that success can be attributed to the accumulation of as much investment knowledge as possible.
Compounding thus can be construed as interest on interest—the effect of which is to magnify returns to interest over time, the so-called “miracle of compounding.