""Be fearful when others are greedy, and greedy when others are fearful.""
""After they first obey all rules, I then want employees to ask themselves whether they are willing to have any contemplated act appear the next day on the front page of their local paper to be read by their spouses, children and friends with the reporting done by an informed and critical reporter. "If they follow this test, they need not fear my other message to them: Lose money for the firm and I will be understanding; lose a shred of reputation for the firm and I will be ruthless.""
""Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.""
Warren Buffett recommends buying out-of-favor stocks and companies trading below estimated intrinsic value and practicing contrarian investing by being fearful when others are greedy and greedy when others are fearful. He urges investors to stay within their circle of competence and emphasizes never losing money as a primary rule. He demands high ethical standards, advising employees to apply a newspaper test and warning that financial losses are tolerable but any loss of reputation will be met ruthlessly. He notes that crises reveal which businesses lack sound decision-making and is stepping down as CEO while remaining chairman.
#value-investing #contrarian-investing #business-ethics #corporate-reputation #leadership-transition
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