I have pledged - to you, the rating agencies and myself - to always run Berkshire with more than ample cash. We never want to count on the kindness of strangers in order to meet tomorrow's obligations. When forced to choose, I will not trade even a night's sleep for the chance of extra profits.
Interpretation
The quote emphasizes the importance of financial prudence and integrity in business.
Warren Buffett highlights the necessity of maintaining a strong cash reserve to ensure operational stability and to honor commitments without relying on external help. He prioritizes long-term security and ethical practices over short-term financial gains, showcasing a deep understanding of responsible business management.
In practice
During a financial presentation, one might use this quote to stress the need for prudence in managing company finances.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
If the world couldn't see your results, would you rather be thought of as the world's greatest investor but in reality have the world's worst record? Or be thought of as the world's worst investor when you were actually the best?
Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.
I think you should read everything you can. In my case, by the age of 10, I'd read every book in the Omaha public library about investing, some twice. _x000D_ You need to fill your mind with various competing thoughts and decide which make sense.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
One’s objective should be to get it right, get it quick, get it out and get it over. Your problem won’t improve with age.
The Final Jeopardy! questions seem to be, by design, things you can't know. And so it's not about who knows them, but who can figure them out in thirty seconds.
The cure for boredom is curiosity. There is no cure for curiosity.
Don't be concerned about others not appreciating you. Be concerned about your not appreciating others.
If you try to be anyone but yourself, you will fail; if you are not true to your own heart, you will fail. Then again, there's no success like failure
"Softly, softly, catchee monkey," is the West African rendering of a very valuable precept. An awful lot of men fail through lack of patient persistence.
Let me tell so much truth. I want to tell the truth in my work. The truth will lead me to all.
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