Warren Buffett is one of the greatest investing and business minds today. But aside from his exponential investing success, Buffett is probably most famous for his humorous insights, colorful commentary, and wise advice. It’s part of what makes him a perfect fit to be a finalist for the 2015 “Best Money Expert” competition, presented by GoBankingRates in collaboration with Ally Bank.
Buffett’s quotes are always entertaining, but some of them provide the perfect insights into how money works and what it really takes to grow wealth. This collection of 10 quotes represents the best pieces of personal finance advice Warren Buffett has ever given.
1. Never lose money
Warren Buffett’s No. 1 piece of advice for 2016 is one he follows as closely as he can: “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.” This rule applies readily to investing — if you’re working from a loss, it’s that much harder to get back to where you started, let alone earn gains.
2. Get high value at a low price
“Never lose money” is an even smarter rule when paired with another Buffett principle. “Price is what you pay; value is what you get,” Buffett wrote in the 2008 Berkshire Hathawayshareholder letter. Losing money can happen when the price you’re paying doesn’t match the value you’re getting — like when you’re paying high interest on credit card debt or spending on items you’ll rarely use.
Instead, be like Buffett and practice frugality by looking for opportunities to get more value at a lower price. “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down,” Buffett wrote.