Success in investing doesn’t correlate with I.Q. Once you are above the level of 25; once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing.
Interpretation
Success in investing relies more on temperament than on intelligence.
Warren Buffett emphasizes that in investing, having a high intelligence quotient (I.Q.) is not as crucial as having the right temperament. Once a person possesses a basic level of intelligence, it becomes essential to manage emotions and impulses, as these are the traits that often lead others to make poor investment decisions.
In practice
In a financial seminar to emphasize the importance of emotional control.
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.
Baseball is the only field of endeavor where a man can succeed three times out of ten and be considered a good performer.
I have always believed that the only way to cope with a cash crisis is not to contract but to try to expand out of it.
Wealth is only a benefit of the game of money. If you win, the money will be there.
When they call you and say, 'So you want to play 'Black Panther?'' if you know what 'Black Panther' is, there's no way in the world you're going to say no because there's a lot of opportunity for magic to happen.
I believe God wants you to have money to pay your bills, send your kids to college and do charity work and build orphanages. There's the teaching that we're supposed to be poor to show that we're humble. I don't buy that. I think we're supposed to be leaders. We're supposed to excel.
I celebrate a victory when I start walking off the field. By the time I get to the locker room, I'm done.
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