Wisdom from Warren

1. Complete the table below.

Quote from Warren Buffett What lesson can you apply to investing?

“only invest in simple businesses that you know and It is easier to evaluate whether a business is valuable and
understand” worthy of investment if you understand what it does.

If you are emotional about investment you are not going to

do well

You are not buying an asset, you are buying a name,

buying a brand, a franchise

Not interested in making money by cheating people

Time – you do not have to be smart, you just have to be

patient

It takes 20 years to build a reputation and 5 minutes to

lose it
Prepare for any eventuality
Lose money for the firm and I will be understanding, if you
do something to lose the reputation of the firm, I will be
ruthless
They do not buy it (the shares) thinking they will sell them
next week, they think they will hold onto them for their
lifetime, like they buy a house or a farm.
At Berkshire, everybody gets the same information
including the comprehensive annual report.

2. Using the quotes above, explain why Warren Buffett has proven to be a successful investor (300 words).