Warren Buffett – "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

Warren Buffett’s investing strategy was heavily influenced initially, by Benjamin Graham and later, by Philip Fisher. He combined the ideas of the 2 men and came out with a proven winning strategy. Benjamin Graham taught him to buy companies at a bargain with a margin of safety, which is known as value investing. Thus, they will make money when the companies reflect their true values in their share prices. It was Buffett’s close aide, Charlie Munger (Vice President of Berkshire Hathaway), who highly recommended Fisher’s thinking to him, that it is worthwhile to purchase the best companies at a high price. These companies have vast potential of growth and henceforth, able to profit from the tremendous increment in their values. This method is also known as growth investing. Although Buffett mentioned that he is 85% Graham and 15% Fisher, it seems that the proportion does not reflect what he practises (more Fisher-like), especially in the later part of his career.

You may also like:

1. Warren Buffett – “I’d be a bum on the street with a tin cup if the markets were always efficient.”
2. Warren Buffett – "Risk comes from not knowing what you're doing."
3. Warren Buffett – "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1."

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