📖 Lessons of Value Investing
A collection of the core investment philosophy left by Warren Buffett and his mentor Benjamin Graham. Their shared lesson is to focus on long-term valuerather than short-term gains.
📌 About this page
This page compiles quotes published in media and books for educational purposes. It does not recommend any specific investment or guarantee future returns. There is no guarantee that past lessons apply the same way in the future, and all investment decisions must be made under your own judgment and responsibility.
Warren Buffett
Warren Buffett1930~Chairman of Berkshire Hathaway
A living legend of value investing. Known as the Oracle of Omaha, he has achieved compound returns exceeding the S&P 500 for over 65 years.
“Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.”
💡 The core philosophy that preserving principal comes before chasing returns
“The stock market is a device for transferring money from the impatient to the patient.”
💡 Only long-term investors, not short-term speculators, win in the market
“Price is what you pay. Value is what you get.”
💡 Distinguishing price from value is the starting point of value investing
“Be fearful when others are greedy, and greedy when others are fearful.”
💡 The essence of contrarian investing: act against the crowd's emotions
“Our favorite holding period is forever.”
💡 An ultra-long-term philosophy: there's no reason to sell a great company
“It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
💡 The shift from mentor Graham's 'cheap stock' strategy to a 'great company' strategy (1989)
“Time is the friend of the wonderful business, the enemy of the mediocre.”
💡 A good business grows stronger as time passes
“Never invest in a business you cannot understand.”
💡 Invest only within your circle of competence
“The best investment you can make is in yourself.”
💡 Investment in your knowledge and skills can never be taken away
“Someone's sitting in the shade today because someone planted a tree a long time ago.”
💡 A metaphor for the power of compounding and the fruits of long-term investing
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”
💡 From a lecture at Yale University (2008)
“Wide diversification is only required when investors do not understand what they are doing.”
💡 Concentrating on a few you understand beats diversifying across many you don't
Benjamin Graham
Benjamin Graham1894~1976Father of value investing · Buffett's mentor
The founder of modern value investing. He advanced investing into a scientific discipline with Security Analysis (1934) and The Intelligent Investor (1949). Warren Buffett called him his mentor and named his book 'the best book of my life.'
“In the short run, the market is a voting machine, but in the long run, it is a weighing machine.”
💡 The difference between the short-term popularity vote (price) and long-term value weighing (earnings)
“The investor's chief problem—and even his worst enemy—is likely to be himself.”
💡 The insight that emotional decision-making is the greatest investment risk
“The intelligent investor is a realist who sells to optimists and buys from pessimists.”
💡 Contrarian investing grounded in facts, not emotion
“Buy not on optimism, but on arithmetic.”
💡 Make investment decisions with numbers and data, not emotion
“The margin of safety is always dependent on the price paid.”
💡 The core principle that even the best company is risky if bought too expensively
“An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.”
💡 The clearest definition distinguishing investment from speculation
“The stock investor is neither right or wrong because others agreed or disagreed with him; he is right because his facts and analysis are right.”
💡 Independent analysis, not crowd psychology, is the standard for investing
“To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.”
💡 Index funds can beat average, but excess returns are hard to achieve
“Mr. Market is your servant, not your guide.”
💡 Use market price swings as opportunities, but don't be ruled by them
Principles both masters emphasized in common
Thorough analysis
Judge based on numbers and facts, not emotion
Secure a margin of safety
Buy only when the price is below the value
Hold for the long term
Don't be swayed by short-term swings; wait patiently
Master yourself
Overcome greed and fear, your greatest enemies
Circle of competence
Invest only in businesses you understand
Turn crisis into opportunity
Be brave when everyone else is fearful
📋 Results are based on historical data; past returns do not guarantee future returns.
📋 This service is provided for educational purposes to help you understand investing, not as investment advice.