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The 25 Best Warren Buffett Quotes in One Infographic

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Warren Buffett is famous for his wit, and will likely go down in history as one of the most quotable and influential investors of all time.

With this week marking his 89th birthday, we thought it was a good time to highlight the 25 best Warren Buffett quotes accumulated through his lengthy and prestigious career.

The Warren Buffett Series

Part 5: Wisdom from the Oracle

Today’s infographic highlights the smartest and most insightful quotes from Buffett on investing, business, and life.

It’s the fifth and final part of the Warren Buffett Series, which we’ve done in partnership with finder.com, a personal finance site that helps people make better decisions – whether they want to find the right credit card or become the next big value investor.

The Warren Buffet Series: The Early YearsInside Warren Buffett's BrainPart 3Warren Buffett's Biggest Wins and FailsBest Buffett Quotes

The 25 Best Warren Buffett Quotes in One Infographic
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After sifting through hundreds of quotes from the Oracle of Omaha, we’ve chosen the best 25 of them and sorted them into a few select categories:

Keeping it Simple

Buffett is known for putting his money in “no-brainer” businesses (i.e. Coca-Cola) that are simple to run, with long-term competitive advantages.

 Buffett Quotes on Keeping It Simple
#1“Never invest in a business you cannot understand.”
#2“I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.”
#3“I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.”
#4“A ham sandwich could run Coca-Cola."
#5“Beware of geeks bearing formulas.”
#6"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ."
#7“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1”

Temperament

For Buffett, how someone responds to different situations is far more important than their actual skills or knowledge level. Investors must not care what the crowd thinks, and they must be patient, focused, and decisive to maximize their potential.

 Buffett Quotes on Temperament
#8"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."
#9“It’s only when the tide goes out that you learn who has been swimming naked.”
#10 “Our favorite holding period is forever.”
#11“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
#12“An investor should act as though he had a lifetime decision card with just twenty punches on it.”

Value

Buffett’s decision-making is driven by an assessment of value. Is the asset he is buying worth way more than it is currently being priced at by the fickle Mr. Market – if so, he’ll lay down his chips.

 Buffett Quotes on Value
#13"Price is what you pay; value is what you get."
#14"Be fearful when others are greedy and greedy when others are fearful."
#15“It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”

Conduct

A Midwestern gentleman, Buffett follows a simple and friendly style of business conduct, with deals often bounded by one’s promise or a simple handshake.

 Buffett Quotes on Conduct
#16"You can't make a good deal with a bad person."
#17"It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently."

Perspective

At 89 years old, Buffett knows a thing or two about business and life. As a result, he’s developed some unique perspectives.

 Buffett Quotes on Perspective
#18“In the business world, the rearview mirror is always clearer than the windshield.”
#19“If past history was all that is needed to play the game of money, the richest people would be librarians.”
#20“Failing conventionally is the route to go; as a group, lemmings may have a rotten image, but no individual lemming has ever received bad press”
#21 "In my view, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal."

Life and Success

How did he build such a successful career, and how does one man generate so much wisdom?

 Buffett Quotes on Life and Success
#22“The most important investment you can make is in yourself.”
#23“If you get to my age in life and nobody thinks well of you, I don’t care how big your bank account is, your life is a disaster.”
#24"I do more reading and thinking, and make less impulse decisions than most people in business. I do it because I like this kind of life."
#25"My life couldn't be happier. In fact, it'd be worse if I had six or eight houses. So, I have everything I need to have, and I don't need any more."

With $89.5 billion to his name, Warren Buffett is not only known for his self-made wealth and investing acumen, but also his wit and quotability. We hope this selection of the best Warren Buffett quotes helps you think about life and investing differently, and that the legendary investor continues to share his wisdom with the world.

Want more Buffett?

Don’t forget to check out the other parts of our Buffett infographic series:

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Interest Rate Hikes vs. Inflation Rate, by Country

Inflation rates are reaching multi-decade highs in some countries. How aggressive have central banks been with interest rate hikes?

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Interest Rate Hikes vs. Inflation Rate, by Country

Imagine today’s high inflation like a car speeding down a hill. In order to slow it down, you need to hit the brakes. In this case, the “brakes” are interest rate hikes intended to slow spending. However, some central banks are hitting the brakes faster than others.

This graphic uses data from central banks and government websites to show how policy interest rates and inflation rates have changed since the start of the year. It was inspired by a chart created by Macrobond.

How Do Interest Rate Hikes Combat Inflation?

To understand how interest rates influence inflation, we need to understand how inflation works. Inflation is the result of too much money chasing too few goods. Over the last several months, this has occurred amid a surge in demand and supply chain disruptions worsened by Russia’s invasion of Ukraine.

In an effort to combat inflation, central banks will raise their policy rate. This is the rate they charge commercial banks for loans or pay commercial banks for deposits. Commercial banks pass on a portion of these higher rates to their customers, which reduces the purchasing power of businesses and consumers. For example, it becomes more expensive to borrow money for a house or car.

Ultimately, interest rate hikes act to slow spending and encourage saving. This motivates companies to increase prices at a slower rate, or lower prices, to stimulate demand.

Rising Interest Rates and Inflation

With inflation rates hitting multi-decade highs in some countries, many central banks have announced interest rate hikes. Below, we show how the inflation rate and policy interest rate have changed for select countries and regions since January 2022. The jurisdictions are ordered from highest to lowest current inflation rate.

JurisdictionJan 2022 InflationMay 2022 InflationJan 2022 Policy RateJun 2022 Policy Rate
UK5.50%9.10%0.25%1.25%
U.S.7.50%8.60%0.00%-0.25%1.50%-1.75%
Euro Area5.10%8.10%0.00%0.00%
Canada5.10%7.70%0.25%1.50%
Sweden3.90%7.20%0.00%0.25%
New Zealand5.90%6.90%0.75%2.00%
Norway3.20%5.70%0.50%1.25%
Australia3.50%5.10%0.10%0.85%
Switzerland1.60%2.90%-0.75%-0.25%
Japan0.50%2.50%-0.10%-0.10%

The Euro area has 3 policy rates; the data above represents the main refinancing operations rate. Inflation data is as of May 2022 except for New Zealand and Australia, where the latest quarterly data is as of March 2022.

The U.S. Federal Reserve has been the most aggressive with its interest rate hikes. It has raised its policy rate by 1.5% since January, with half of that increase occurring at the June 2022 meeting. Jerome Powell, the Federal Reserve chair, said the committee would like to “do a little more front-end loading” to bring policy rates to normal levels. The action comes as the U.S. faces its highest inflation rate in 40 years.

On the other hand, the European Union is experiencing inflation of 8.1% but has not yet raised its policy rate. The European Central Bank has, however, provided clear forward guidance. It intends to raise rates by 0.25% in July, by a possibly larger increment in September, and with gradual but sustained increases thereafter. Clear forward guidance is intended to help people make spending and investment decisions, and avoid surprises that could disrupt markets.

Pacing Interest Rate Hikes

Raising interest rates is a fine balancing act. If central banks raise rates too quickly, it’s like slamming the brakes on that car speeding downhill: the economy could come to a standstill. This occurred in the U.S. in the 1980’s when the Federal Reserve, led by Chair Paul Volcker, raised the policy rate to 20%. The economy went into a recession, though the aggressive monetary policy did eventually tame double digit inflation.

However, if rates are raised too slowly, inflation could gather enough momentum that it becomes difficult to stop. The longer high price increases linger, the more future inflation expectations build. This can result in people buying more in anticipation of prices rising further, perpetuating high demand.

“There’s always a risk of going too far or not going far enough, and it’s going to be a very difficult judgment to make.” — Jerome Powell, U.S. Federal Reserve Chair

It’s worth noting that while central banks can influence demand through policy rates, this is only one side of the equation. Inflation is also being caused by supply chain issues, a problem that is more or less outside of the control of central banks.

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3 Insights From the FED’s Latest Economic Snapshot

Stay up to date on the U.S. economy with this infographic summarizing the most recent Federal Reserve data released.

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us economic snapshot

3 Insights From the Latest U.S. Economic Data

Each month, the Federal Reserve Bank of New York publishes monthly economic snapshots.

To make this report accessible to a wider audience, we’ve identified the three most important takeaways from the report and compiled them into one infographic.

1. Growth figures in Q2 will make or break a recession

Generally speaking, a recession begins when an economy exhibits two consecutive quarters of negative GDP growth. Because U.S. GDP shrank by -1.5% in Q1 2022 (January to March), a lot rests on the Q2 figure (April to June) which should be released on July 28th.

Referencing strong business activity and continued growth in consumer spending, economists predict that U.S. GDP will grow by +2.1% in Q2. This would mark a decisive reversal from Q1, and put an end to recessionary fears for the time being.

Unfortunately, inflation is the top financial concern for Americans, and this is dampening consumer confidence. Shown below, the consumer confidence index reflects the public’s short-term outlook for income, business, and labor conditions.

consumer price index 2005 to 2022

Falling consumer confidence suggests that more people will delay big purchases such as cars, major appliances, and vacations.

2. The COVID-era housing boom could be over

Housing markets have been riding high since the beginning of the COVID-19 pandemic, but this run is likely coming to an end. Here’s a summary of what’s happened since 2020:

  • Lockdowns in early 2020 created lots of pent-up demand for homes
  • Greater household savings and record-low mortgage rates pushed demand even further
  • Supply chain disruptions greatly increased the cost of materials like lumber
  • Construction of new homes couldn’t keep up, and housing supply fell to historic lows

Today, home prices are at record highs and the cost of borrowing is rapidly rising. For evidence, look no further than the 30-year fixed mortgage rate, which has doubled to more than 6% since the beginning of 2022.

Given these developments, the drop in the number of home sales could be a sign that many Americans are being priced out of the market.

3. Don’t expect groceries to become any cheaper

Inflation has been a hot topic this year, especially with gas prices reaching $5 a gallon. But there’s one category of goods that’s perhaps even more alarming: food.

The following table includes food inflation over the past three years, as the percent change over the past 12 months.

DateCPI Food Component (%)
2018-02-011.4%
2019-05-012.0%
2019-06-011.9%
2019-07-011.8%
2019-08-011.7%
2019-09-011.8%
2019-10-012.1%
2019-11-012.0%
2019-12-011.8%
2020-01-011.8%
2020-02-011.8%
2020-03-011.9%
2020-04-013.5%
2020-05-014.0%
2020-06-014.5%
2020-07-014.1%
2020-08-014.1%
2020-09-014.0%
2020-10-013.9%
2020-11-013.7%
2020-12-013.9%
2021-01-013.8%
2021-02-013.6%
2021-03-013.5%
2021-04-012.4%
2021-05-012.1%
2021-06-012.4%
2021-07-013.4%
2021-08-013.7%
2021-09-014.6%
2021-10-015.3%
2021-11-016.1%
2021-12-016.3%
2022-01-017.0%
2022-02-017.9%
2022-03-018.8%
2022-04-019.4%
2022-05-0110.1%

From this data, we can see that food inflation really picked up speed in April 2020, jumping to +3.5% from +1.9% in the previous month. This was due to supply chain disruptions and a sudden rebound in global demand.

Fast forward to today, and food inflation is running rampant at 10.1%. A contributing factor is the impending fertilizer shortage, which stems from the Ukraine war. As it turns out, Russia is not only a massive exporter of oil, but wheat and fertilizer as well.

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