Warren Buffett’s words carry great weight in the business and finance communities. In addition to serving as CEO of Berkshire Hathaway, the $1.1 trillion company he took over in 1965, Buffett has amassed $165 billion in personal wealth as of April 14, 2025, according to The World’s Real Time Billionaires list from Forbes.
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Selected from annual letters to shareholders, videotaped shareholder meetings, news interviews and his own writings, these Warren Buffett quotes could change your financial future for the better.
“Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.”
Financial professionals know that displays of wealth are not wealth, and increasing your cost of living doesn’t increase your standard of living — a familiar theme for Warren Buffett, and one he lives by.
Buffett has said that he doesn’t advocate for extreme frugality. But he does think it’s crazy to spend more than you make.
As rich as a Rolls might make you feel, it’s no more effective than the subway at transporting you to work, and as a depreciating asset, it detracts from your wealth. That’s OK. Just be mindful of how much value you get from feeling rich vs. being rich.
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“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”
Market fluctuations present good investment opportunities, but Buffett says to buck the trends. As a value investor, Buffett bases stock purchases on the strength of the companies, not the sentiment driving market volatility.
He illustrated that point with a real estate analogy in his 2013 letter to Berkshire Hathaway shareholders.
“If a moody fellow with a farm bordering my property yelled out a price every day to me at which he would either buy my farm or sell me his — and those prices varied widely over short periods of time depending on his mental state — how in the world could I be other than benefited by his erratic behavior?
“If his daily shout-out was ridiculously low, and I had some spare cash, I would buy his farm. If the number he yelled was absurdly high, I could either sell to him or just go on farming.”
“Today, people who hold cash equivalents feel comfortable. They shouldn’t.”
This quote is as relevant today as it was in 2008, when Buffett wrote the words in an op-ed for The New York Times. That year signaled the beginning of the mortgage crisis that sent markets reeling and triggered the Great Recession.
Cash seems safe when the markets are uncertain, but it’s guaranteed to lose value due to inflation. Historically, the opposite is true of stocks over the long term. By staying out of the market until prices improve and investing feels safer, you face a double whammy: higher-priced shares and diminished purchasing power.
“I never attempt to make money on the stock market.”
Buffett often has said he doesn’t know what prices will do in the short term. He doesn’t have to worry about it, because the market’s movement over a month or year has no bearing on how profitable a particular company will be five or ten years from now.
Buffett looks for companies that would continue to thrive even if the market shut down for five years.
“The investor of today does not profit from yesterday’s growth.”
Investors are familiar with the prospectus disclaimer warning them that the investment’s past performance doesn’t guarantee future results. Buffett takes that to heart.
He has said he only buys businesses when he thinks he can predict in a general way what’s going to happen with them in the future. It’s not an exciting way to invest; predictable companies tend to experience slow, steady growth, although you might find a breakout every now and then.
So, what does he look for? A first-class business with a strong competitive advantage and economics he understands.
That last point is vital. Your limitations in knowledge serve as a perimeter that gives you a margin of safety, Buffett said.
If staying within that margin narrows your choices, so be it — you don’t need a lot of holdings to make a lot of money over time. In fact, Berkshire Hathaway’s portfolio is worth over $260 billion, according to CNBC’s Berkshire Hathaway Portfolio Tracker, and it holds just 44 companies.
Buffett’s longtime partner, the late Charlie Munger, emphasized the importance of continuous learning and practice for successful investing. Keep doing that and, despite setbacks, you’ll almost certainly succeed.
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This article originally appeared on GOBankingRates.com: 5 Warren Buffett Quotes That Could Change Your Financial Future
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