Wise Money: The Timeless Wisdom of Warren Buffet
Quote to Ponder
“The most important quality for an investor is temperament, not intellect.”
- Warren Buffett
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Insight
As investors, we have a rare opportunity each year to hear directly from one of the greatest financial minds of all time—Warren Buffett. His annual letter to Berkshire Hathaway shareholders is packed with lessons that stand the test of time. My first assignment as an advisor was to read every single one. I was told that Buffett’s letters were more valuable than any business degree, and I believe that’s true.
At 94 years old, every additional letter from Buffett feels like a gift. This year, in a market where many investors are chasing record highs, his timeless investment principles remain as relevant as ever.
Buffett’s investment principles align closely with how we manage money. He talks about staying within your “circle of competence,” which we interpret as focusing on what we can actually control. We can’t predict markets, but we do know that certain strategies—owning stocks over bonds, value over growth, and small over large companies—have historically rewarded investors who stay the course.
Buffett himself has experienced long periods of underperformance, including during the late ’90s dot-com bubble, yet he stuck to his strategy and ultimately proved right.
Another lesson from his letters is the importance of having flexibility. While Berkshire maintains substantial cash for strategic opportunities, we apply this same principle in a more diversified way: having the right mix of investments allows us to take advantage of market dislocations when they arise.
We know we’re not the next Warren Buffett, but we don’t have to be. His principles—patience, discipline, and a focus on long-term fundamentals—are timeless, and they guide the way we invest for you. As always, our goal is to apply these principles in a way that protects and grows your wealth, so you can focus on what truly matters in life.