At the outset let me tell you that I am not a big fan of Buffett. Uday Kotak and Mukesh Ambani among others have created more wealth over the same time frame. Many Indian fund managers have got better $ denominated returns…so on and on.

Here I am trying to compile some quotes which I have (sometimes unknowingly) used in the past. Many of these things were what I was doing BEFORE I saw the quote. One thing you cannot deny is WB is an amazing communicator – and his one liners convey far more than many paras….

1. Whatever talent or skill you have…some things take time. You cannot produce a baby in a month by getting 9 women pregnant.
2. I do not like to jump over a 7 foot bar…I look for 1 foot bar so that I can step over them
3. You have to do only a few things right in life, as long as you do not do too many wrong things
4. You do things when the opportunities come along
5. Someone is sitting in a shade today because some one planted a tree…long ago
6. Predicting rain does not count. Building Arks do.

I AM Sure I am missing some more important ones…and I have also not produced them exactly as the big man said it….but yes there is a learning in all these sayings. I keep saying “you cannot produce a baby…..”. For those with a good memory you will remember Century Mills ad which said “It takes a 100 to be a Century” when the company had its 100th birthday celebration. Even when we know the compounding formula we do not appreciate the value of time. Exactly why starting early and having a good portfolio is so important.

I have said this many times. Rahul Dravid the cricketer and Warren Buffett made money by UNDERSTANDING RISK and not just by TAKING RISK. Most people have this stupid notion of ‘higher the risk, higher the reward’. Not true at all. Higher the risk, higher the potential reward is the right way to look at risk and reward. WB is in the risk buying and selling business (insurance!) and has his finger in all aspects of the business – primary and re-insurance businesses. Obviously he unerstands risk, and does not take risks UNLESS well compensated for.

You have to do only a few things right IF you have not done too many things wrong – if you started early (or your parents started it for you), saved regularly and invested that in good quality shares or a good equity mutual fund and did not interrupt the compounding, your wealth got created. I do think I got some of the basics right. Yes I did lose money with my broker…but that did not break or destroy me. I am a classice example of getting some basic stuff right…and hopefully will not do too many things wrong!!

You really do things as opportunities come along. You do not wait for them..and more importantly you may not have the skills or levels to create the opportunities. So wheter it is training or blogging or writing a book – you need to recognize the opportunity!

I keep saying ‘predicting markets is useless and UNELESS you can make money, being in the market is useless. An amazing amount of time is wasted on ‘what will the market do tomorrow’. To enjoy an omelette you need not lay an egg.