There’s no question that Warren Buffett is one of the greatest investors of all time. His track record speaks for itself, and so does the empire he’s built through Berkshire Hathaway. But what really sets Buffett apart isn’t just his returns; it’s the timeless advice he has shared with everyday investors.
One of his most famous quotes, “Be fearful when others are greedy, and greedy when others are fearful,” offers one of the best mindset quotes in all of investing.
The message is simple: stay grounded when others lose their heads. Don’t follow the crowd. When everyone is panic-selling, look for an opportunity. And when everyone is getting overly excited, that’s when you start being cautious.
However, while that quote helps shape your mindset, it doesn’t tell you exactly what to buy. So here are three more Warren Buffett quotes to help guide you toward the right stocks and help you build a high-quality, long-term portfolio.
Three of the best Warren Buffett quotes to always keep in mind
Before you even begin to start looking at which stocks you want to buy, one of the best Warren Buffett quotes says, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
This quote is all about quality. In the past, Buffett was a deep-value investor, hunting for cheap stocks. But over time, he realized that buying great businesses, even if they are not undervalued, is far more rewarding.
A wonderful company keeps growing, keeps compounding, and requires less babysitting. A fair company, even if it’s cheap, can stay stuck for years or go nowhere.
So it’s essential to focus on finding companies with strong brands, consistent earnings, and durable competitive advantages. These are the kinds of companies you can own through thick and thin. It’s not about finding the cheapest stock; it’s about finding the best business.
It’s also important to ensure that when you’re looking to buy stocks, you’re planning to buy these companies and hold them for the long haul. In fact, Warren Buffett once said, “Our favourite holding period is forever.”
This one sums up Buffett’s entire investing philosophy. He doesn’t buy stocks to flip them in a few months. He looks for businesses he can hold for decades. When you buy with the mindset of holding forever, you naturally choose better companies.
Plus, by investing for the long haul, you also stop worrying about day-to-day market noise. And most importantly, you let compounding do the heavy lifting. It’s hard to beat the returns you’ll get from a great business held for 10, 20, or 30 years. So instead of timing the market, focus on finding stocks you’d be happy to own for life.
Finally, one of the most important yet underrated quotes we’ve received from Warren Buffett over the years is, “Risk comes from not knowing what you’re doing.”
For Buffett, it’s simple: if you don’t understand the company you’re buying well, that’s risky. That’s why he always sticks to what he calls his circle of competence.
If you know how a company makes money, understand its industry, and trust its long-term prospects, you’re in a good place. But if you’re guessing or following a trend, that’s when things fall apart. Stick to what you know and only invest in businesses you truly understand.
One of the best Canadian stocks to buy now
If you’re following Warren Buffett’s advice, there are plenty of high-quality stocks in Canada to choose from. However, one of the very best has to be Dollarama (TSX:DOL).
Dollarama is one of the best long-term growth stocks on the TSX. For years, it has grown both rapidly and consistently, and it even outperforms when the economy is worsening.
It’s certainly a wonderful company, so when you can buy it at a fair price, it’s undoubtedly one of the best stocks in Canada to buy.
Furthermore, it’s the perfect stock to buy and hold for years. Not only that, but as a discount retailer, it has a straightforward business model, making it easier for most investors to understand.
So, if you want to invest like Warren Buffett, it’s essential to stay disciplined, do tonnes of research and always buy the highest-quality companies, as long as you understand how they make money.
