1.’It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.’ Source: 1989 Letter to shareholders This is one of Buffett’s more famous quotes, and it reflects one of the basic tenets of his investment strategy: He sticks with companies he can fully comprehend, and ones for which the intrinsic value is self-evident, regardless of the current state of their finances. It’s a philosophy that has served him well; if he weren’t prone to giving vast amounts of his money to charity, Buffett might be the single richest man in the world (and he was, in fact, in 2008, according to Forbes’ annual list). Buffett’s interest in moneymaking began early. As a boy growing up in Omaha, Neb., he would sell chewing gum and magazines door to door, and he filed his first tax return at age 14 (marking deductions for his bicycle and watch, used on a paper route). In high school, Buffett and a friend bought a pinball machine and put in a local barber shop; they quickly expanded that enterprise to include several pinball machines around town. Today, Buffett’s personal net worth hovers right around $55 billion and [...]
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