On 3 May 2025, Warren Buffett announced that he would be stepping down as chief executive of Berkshire Hathaway at the end of the year.

Although it’s been expected for some time, especially given the fact he is now 94, the news still came as a surprise to many.

Perhaps it was the fact that he’s been around for so long, growing his company for over 60 years. It could also be because he’s always been so visible, sharing the wisdom that has made him one of the best-known, and successful investors ever.

Widely known as “the Oracle of Omaha”, he built Berkshire Hathaway from a declining textile producer into an extraordinary conglomerate which, according to MSN, is now worth $1.16 trillion.

In the six decades he has been in charge, The Financial Times confirm that his business and investment prowess has compounded the company share price by 20% a year – twice that of the S&P 500 over the same period.

Buffett has always been happy to share his investment wisdom

Throughout the years, Buffett has been notably keen to share the secrets of his success through a series of one-liners and investment maxims, often included in his shareholder letters.

He’s a master in expressing concepts in a simple and engaging way.

Often he’s been seen as contrarian, but only because many of his investing strategies focus on simplifying the process that other seem to deliberately try to complicate with technical jargon.

Those annual letters to Berkshire Hathaway shareholders have been as eagerly anticipated as new Beatles albums were back in the day, with the contents pored over as though they were religious tracts.

8 of Buffett’s best-known investment comments

Here are our eight favourite Warren Buffett pearls of investment wisdom.

1. “If the investor fears price volatility, erroneously viewing it as a measure of risk, he may, ironically, end up doing some very risky things.”

The importance of not fearing stock market fluctuation has long been the subject of Buffett’s observations.

Risk is based on how you react to market volatility, rather than the volatility itself, and often, the riskiest thing you can do is cash in investments after they have fallen in value.

Buffett confirmed his investment ethos when he said that his aim was “to be fearful when others are greedy and to be greedy only when others are fearful”, which underlines the importance of keeping your emotions under control at times when markets are in turmoil.

2. “A wildly fluctuating market means that irrationally low prices will periodically be attached to solid businesses.”

As a by-product of volatility, Buffett was a big advocate of treating a falling market as a great opportunity to buy cheap shares in top companies.

He made a similar point when he said that “whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down!” Both confirm the importance of looking for bargains at times when stocks carry low values.

3. “Risk comes from not knowing what you’re doing.”

You don’t start a major project without a detailed plan, and this applies just as much to growing your wealth through your investment strategy as to anything else.

Not only that, but once your plan is in place you need to stick to it, and not be tempted to make unnecessary changes when you’re faced with problems.

Any robust plan will have an element of investment volatility factored into it. By making short-term adjustments you may well jeopardise your future financial security.

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

A lot of Buffett’s quotes derive from his consistent advocacy for long-term investing.

While what is in your portfolio is important, successful investing can often come down to a matter of how long you invest for, rather than the shares you buy or sell.

By holding assets for the long term, you reduce the risk of short-term market turbulence blowing your investment plans off course, and you benefit from the long-term effect of compounded dividend payments.

5. “The trick is, when there is nothing to do, do nothing.” 

This is such an important message that we recently devoted an entire We’re the Brits in America podcast to mastering the art of doing nothing, and that if there is no opportunity there, don’t do anything.

Another effective way Buffett expresses this idea is the idea that “The stock market is designed to transfer money from the active to the patient,” confirming the importance of thinking through decisions and not reacting hastily.

6. “Beware of geeks bearing formulas.”

Buffett has always been in favour of keeping investing simple, hence this example of punning word play.

“Keep your investing strategy simple – complexity is often the enemy of clarity,” he remarked in a recent interview.

In reality, you don’t have to be a genius to be a good investor, and you succeed through hard work and due diligence.

7. “Price is what you pay. Value is what you get.”

With this often-repeated quote, Buffett is urging you to focus on the underlying value of an investment rather than the possibility of short-term gains.

In this regard he’s practised what he has preached, with substantial long-term holdings in companies such as Apple, American Express, and Walmart.

8. “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.”

Warren Buffett has always been a firm believer in taking advantage of opportunities when they are available.

So when you have a chance to buy shares in what is perceived to be a value company, you should make every effort to take advantage of a low price.

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If you are an  expatriate living in the US and would like to talk about your investment strategy, please get in touch to arrange an Exploratory Zoom call to talk through your options.

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